Unfortunately, when a couple goes through a divorce, it can be a very difficult and�traumatic time. As difficult a time it might be, it is important to remember that your estate�planning documents may need to be revised because of the implications that may come out of the�divorce.

State laws differ from state to state about how a divorce affects the beneficiary listed on�certain assets, such as on life insurance policies, 401K plans, and IRA accounts. In New York,�when a New Yorker gets a divorce, all beneficiary dispositions they made to their former spouse,�such as naming them as a beneficiary of a life insurance policy, a 401K plan or IRA, are�automatically revoked by law under EPTL 5-1.4, unless, of course, the language in the governing�instrument specifically states otherwise. Therefore, after a divorce decree has been issued, the�bequest to the former spouse is revoked, and the next beneficiary listed would be entitled to the�asset. However, if you fail to list successor beneficiaries, the asset would become a part of your��probate� estate and would require an estate administration or probate proceeding before it is�passed to your loved ones.

In the same vein, a divorce will also revoke any rights your ex-spouse had to act as an�executor under your last will & testament, or as an agent under your health care proxy or power�of attorney. It is important to revisit these essential estate planning documents to make sure that�you have someone else appointed to manage your affairs if you become sick or pass away.

Although EPTL 5-1.4 seems to have been put in place to help those that forget to change�the beneficiaries listed on certain assets, or for those that forget to revise their estate planning�documents after the divorce, it is important to remember that the automatic revocation provisions�of EPTL 5-1.4 only takes effect upon the completion of the divorce proceeding. If you pass away�before you are legally divorced, your spouse would be entitled to whatever your current estate�plan gives them. In addition, even though the law provides for automatic revocation, some�financial institutions may choose to pay out to the beneficiary they have listed on file despite the�law. For these reasons, it is important to speak with a trusts and estates attorney if you are�contemplating a divorce, are in the process of a divorce proceeding, or have just gone through a�divorce.

As a side point, it is worth mentioning that while a divorce automatically revokes your�ex-spouse�s designation as beneficiary or agent with respect to your estate planning documents�and your retirement accounts, it does not remove any of the ex-spouse�s family or friends as your�agent or beneficiaries that you may have chosen under your estate planning documents. As such,�if your last will and testament appoints your ex-spouse�s brother to be the legal guardian of your�children, or if you left any inheritance to any of your former spouse�s family or friends, a divorce�does not revoke those selections. So unless you are in love with your ex-in- laws, it is another�reason why you should review your estate planning documents and revise anything that needs to�be updated.

As a general rule, it is a good idea for all of us to review our estate planning documents at�least once every five years (or sooner, if we experience a significant change in financial or�familial status). Having an efficient estate plan in place not only ensures that your assets will be�managed and distributed according to your wishes and directives, but� also alleviates burdens on�your family members and reduces the likelihood of� disputes.� An efficient estate plan can ensure�that your family is adequately provided for, protect your assets from any creditors to whom your�beneficiaries may owe money, and can shield assets from your heir�s spouses and divorced�spouses. May Hashem bless us all with long, happy and healthy lives – amen!

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The Trusts & Estates Practice Group at Yedid & Zeitoune, PLLC collectively work together with each client to ultimately put together an Estate Plan customized to each client�s particular needs, taking into account the need to balance control with protection. The attorneys in the Trust & Estates Practice Group at Yedid & Zeitoune have a combined 20 years of legal experience and collectively work together with each client to ultimately put together an Estate Plan customized to each client�s particular needs.

Isaac Yedid, Esq. and Raymond Zeitoune, Esq.

Yedid & Zeitoune, PLLC

1172 Coney Island Avenue Brooklyn, New York 11230

Phone: (347) 461-9800 � � �Fax: (718) 421-1695 � � �Email:�[email protected]

NYC Office – By Appointment Only:

152 Madison Avenue, Suite 1105 New York, New York 10016

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