When going through the emotional and logistical chaos of divorce, estate planning documents might take a back seat among your priorities. However, failing to address these important papers can lead to unintended consequences that can echo long after the finalization of your divorce.
Your trust, a cornerstone of your estate plan, may suddenly benefit individuals you no longer wish to include or fail to protect those you hold dear. As you face the challenges of your marriage’s dissolution in California, it is crucial to understand how this legal process affects the validity of your trust.
What happens to individual trusts?
California law considers an individual trust you created before or during your marriage as separate property. This means the assets within this trust are typically shielded from division during divorce proceedings. However, you should still review your trust to ensure it aligns with your current circumstances and wishes. If your spouse is a beneficiary or trustee, you may need to remove them from these roles.
What if you have a joint trust for your children?
If you and your spouse created a joint trust for the benefit of your children, you will likely need to divide it as part of your divorce settlement. This process typically involves creating two separate trusts, one for each spouse, and allocating the assets accordingly. You must also revisit the trust’s language to ensure it reflects your new co-parenting arrangement.
Keeping your future secure even after divorce
Divorce introduces many changes to your life; your trust is no exception. By reviewing and updating your trust and understanding how divorce affects your estate plan, you ensure that your wishes continue to guide the distribution of your assets despite this significant milestone.