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Adapting estate plans after a gray divorce in Tennessee

On Behalf of | Jun 26, 2024 | Divorce In Tennessee |

Gray divorce, the term for couples divorcing later in life, often brings significant financial and legal changes. One critical area requiring attention is estate planning. Adjusting a few key things ensures your assets reflect your new situation. 

Revising your will

After a divorce, it’s crucial to update your will. Tennessee law automatically revokes any provisions benefiting an ex-spouse. However, creating a new will is wise to avoid confusion. The process includes appointing a new executor if your former spouse was in this position. 

Updating trusts

Trusts are another essential component of estate planning that needs revision post-divorce. You must amend these details if your trust names your ex-spouse as a trustee or beneficiary. In Tennessee, a court can modify trusts under certain conditions. However, it’s generally easier and quicker to make these changes yourself. 

Changing beneficiary designations

Divorce doesn’t automatically change beneficiary designations on life insurance policies, retirement accounts, and other financial instruments. You must update these directly with each institution. Neglecting to do so can result in your ex-spouse receiving assets despite the divorce. 

Considerations for minors

If you have minor children, revising guardianship provisions is essential. While Tennessee law prioritizes a child’s best interests, clearly stating your preferences in your will can guide the court’s decisions. Additionally, setting up trusts for minor children can help manage their inheritance responsibly.

Tax implications

Divorce can alter your tax situation, impacting your estate plan. Tennessee has no state inheritance tax, but federal estate taxes may apply. Consulting with a financial advisor can help you understand these changes and adjust your plan accordingly.

Charting your path forward

Adjusting your estate plan after a gray divorce is essential to ensure it reflects your new reality. Regular reviews and updates help maintain clarity and prevent complications. Stay informed and proactive to protect your assets and ensure their distribution aligns with your wishes.

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