July 2020 - Garton & Harris

When marriages end, there are many short-term and long-term legal, financial, and logistical considerations. One significant thing British Columbia divorcees should consider is how the divorce will impact their estate plans. Spouses have significant roles and entitlements when it comes to their partner’s plans for incapacity or death. As such, it is important to revisit wills when a marriage is in the process of ending.

There are many documents in which a spouse may be named beneficiary. Individuals should review the names on bank accounts, insurance policies and trusts and make adjustments if needed. In addition, it is important to visit one’s estate lawyer to review the power of attorney documents and the will to see if and where the spouse is explicitly named. While some aspects of plans may be automatically invalidated upon divorce, it’s wise to avoid any outdated language in the official will to prevent plans being called into question.

Trusts are a different matter altogether. In fact, most trusts will be considered in the divorce agreement, and decisions about what will happen to them may be made at that time. An ex-spouse may therefore still become the beneficiary of an irrevocable trust, depending on the circumstances and agreement.

There are many planning decisions that may need to be revisited upon divorce. Who will be the executor of the estate? Should a former spouse still receive some money, particularly if there are minor children involved? A British Columbia lawyer can help to clarify these estate and family law issues, and revise wills accordingly.

Dealing with an estate after a family member passes away can be challenging and emotional, even if everyone is getting along. British Columbia families with pre-existing tension, complicated estates or mixed opinions are particularly at risk for conflict if wills are incomplete, confusing or unexpected. For that reason, it’s a good idea for people to take a few careful steps, such as prioritizing legal advice and communicating plans to help prevent friction among their beneficiaries.

The first step in any estate planning process is finding a lawyer who can be trusted and making sure he or she understands the situation at hand. Financial advisors, wealth managers and accountants can also be helpful to consult throughout this process. A full financial overview should be conducted to ensure that no assets are left unaccounted for in estate plans. This process also helps to set the executor up for a successful estate administration by centralizing all the documents one will need in the process.

Finally, it is critical to communicate plans with the family. All beneficiaries should be present at this meeting, as well as anyone implicated in the decisions. In the meeting, the basic intentions of the estate should be shared, along with who has been named as executor, the power of attorney and other involved people. This is also a good time to share one’s own expectations and hopes for the inheritance process, and to ask everyone involved to communicate and be transparent when the time comes.

Advance preparation can make all the difference when preventing conflict in estate administration. Even things that seem small, like preparing an online password list, can make a big difference when the time comes. Individuals who need support drafting wills, or those who have questions and concerns about wills in which they are implicated, should reach out to a British Columbia lawyer.

How should individuals update their wills following a divorce?

Preventing conflict over wills with support and communication

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