Gray divorce, or divorce among older adults, is becoming increasingly common. This demographic trend reflects societal changes, including reduced stigma around divorce and increased financial independence for women. However, divorce later in life can have significant financial implications, particularly for women, and may impact retirement plans and long-term care considerations.
One key aspect affected by gray divorce is estate planning. Here are five important steps to consider when updating your estate plan after a gray divorce:
- Change beneficiaries: Review and update beneficiaries on retirement accounts, life insurance policies, and other financial assets to ensure they align with your current wishes.
- Create a new will: If your existing will leaves assets to your former spouse, consider creating a new will to designate new beneficiaries and ensure your assets are distributed according to your current preferences.
- Execute new power of attorney documents: Consider creating new power of attorney documents for both financial matters and healthcare decisions, designating individuals other than your former spouse to act on your behalf if needed.
- Begin estate planning: Take this opportunity to start or revisit your estate planning efforts, working with an attorney to develop a plan that reflects your current circumstances and goals.
- Plan for long-term care: Evaluate your long-term care needs and develop a plan to ensure you can afford and access the care you may require as you age, considering options such as long-term care insurance and Medicaid planning.
The Elder Law attorneys at Mandelbaum Barrett PC can provide valuable guidance and support throughout this process, helping you navigate the complexities of updating your estate plan after a gray divorce and ensuring your wishes are properly documented and protected.