Tuesday, May 31, 2016
Oftentimes when going through a divorce, couples have a lot on their mind, but what they forget about is how the divorce will impact their estate plan. An outcome in most divorces is a property or marital settlement agreement (PSA), which dictates obligations of both parties. It is important that this agreement have some flexibility from an estate planning perspective.
One example to consider is an agreement to maintain life insurance in the event that one parent can no longer provide child support. Make sure, however, that the PSA specifies how these proceeds are to be used, especially when being initially handled by your former spouse. It might also be beneficial to put these proceeds into a living trust, but, once again, you must make sure that the trust provisions are specific.
See Catherine F. Schott Murray, How Divorce Can Impact Your Estate Plan, National Law Review, May 19, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this Article to my attention.