Divorce may end a marriage, but without updates to an estate plan, an ex-spouse could still inherit assets. Many people assume a divorce automatically removes an ex from wills, trusts, and beneficiary accounts. That’s not always the case. Without proper changes, an ex-spouse might control finances, inherit property, or even make medical decisions.

Why You Must Update Your Estate Plan After Divorce

Estate plans often name a spouse as a beneficiary, executor, trustee, or power of attorney. After divorce, failing to update these designations could leave an ex in control. If no changes are made, an ex-spouse might:

• Receive retirement accounts, life insurance, or bank accounts.
• Control a trust meant for children.
• Inherit assets listed in a will.
• Make financial or medical decisions if named in a power of attorney.

Key Documents to Update Immediately

To avoid these risks, review and update these estate planning documents as soon as possible.

1. Wills and Trusts

• Rewrite or amend your will to remove an ex-spouse as a beneficiary or executor.
• Update trust documents to prevent an ex from controlling or inheriting assets.
• Review guardianship designations for minor children to ensure the right person is named.

2. Beneficiary Designations

Some assets pass outside of a will or trust. If you don’t update the beneficiary forms, an ex-spouse may still inherit:

• Life insurance policies
• Retirement accounts (401(k), IRA, pensions)
• Payable-on-death bank accounts
• Transfer-on-death investment accounts

Contact financial institutions to update these forms and ensure assets go to the right person.

3. Powers of Attorney & Health Directives

• Revoke any financial power of attorney that gives an ex-spouse control over finances.
• Update your healthcare directive or medical power of attorney to prevent an ex from making medical decisions.

What Happens If You Don’t Update Your Plan?

If you don’t make these changes, your ex could still inherit assets or have legal authority over financial and medical matters. Some states automatically revoke an ex-spouse’s rights in a will or trust, but beneficiary designations usually override these laws. That means financial institutions will distribute funds to the person listed, even if the divorce happened years ago.

How to Fix Your Estate Plan Quickly

• Review all estate documents and remove your ex-spouse.
• Contact financial institutions to update beneficiary designations.
• Draft a new will and trust that reflect your current wishes.
• Replace financial and medical powers of attorney to ensure the right person has authority.