Estate Planning after a Divorce with guest Michelle Chapin
Michelle is one of my law partners and an exceptional attorney at the law firm of Paley Rothman in Bethesda, Maryland. She is a member of our estate planning, tax, and corporate practice groups where she advises individuals, families, and small business owners regarding their estate and gift planning needs.
She is recognized as a top trust and estates lawyer in Washingtonian Magazine. She excels at explaining complex and advanced concepts in a way that is succinct and easy to understand. We often refer clients to one another. I know it's really important to Michelle to make sure that her clients feel comfortable with the estate plans that she prepares for them.
On today's show, she is going to walk us through some tips about what the estate planning process looks like for divorcing individuals. We also talk about important documents that all individuals should have, especially those going through the divorce process.
You can find Michelle here:
Paley Rothman Attorneys at Law
(301)951-9353
Show Notes:
[01:53] Michelle advises clients on how to leave their assets at death and how to protect themselves if they are incapacitated. She also helps clients with minor children name guardians in their will or if they are incapacitated.
[02:33] She also helps clients who have modest means who need trusts.
[03:10] Everyone needs an estate plan whether they are married or divorced. You should want to leave your estate to someone in particular.
[03:53] Estate planning is state-specific. Michelle represents Maryland, DC, and Virginia. It's best to have local counsel wherever you reside.
[04:54] When people aren't getting divorced the estate plan is a joint representation.
[07:26] Conflict has to be waived in order to represent just one of the spouses.
[07:55] An estate plan isn't just your will. It could also include an irrevocable trust where your next named trustee could step in for your capacity.
[08:41] People also require a financial power of attorney and a medical directive. You also want to update beneficiary designations for retirement benefits and life insurance.
[10:23] A divorce usually affects all of these documents, because people normally name their spouse in every position.
[10:48] Some states have laws where if your spouse is in a fiduciary position and you get divorced that position will be revoked.
[11:08] You don't want to rely on state law. You want to have your own plan and do what's best for your needs.
[11:28] A fiduciary is a person that you've named to act in your best interest.
[14:38] Proactively update your destinations upon divorce.
[16:18] You can revoke a will by tearing it up. You can also create a new will and include language that revokes your older will. It's still a good idea to destroy your old will or tear it up.
[18:41] They hold their clients wills free of charge, so they don't accidentally get revoked. A fireproof box is the best place to keep a will.
[20:26] If you divorce, your Inherited property isn't divided. The augmented estate - if you disinherit a spouse, they can make a claim against your estate when you die.
[22:26] A prenuptial agreement can be used to keep property separate after divorce.
[22:49] The estate can be made a gift for the person's children and put in a trust.
[23:40]