Divorce changes your finances, living arrangements, and family routines. Your estate plan should change, too. We work with clients in Livonia and throughout Wayne County who discover that their wills, beneficiary designations, or decision-making documents still reflect their marriage. A review of your estate plan can help bring those documents in line with your current wishes.

Michigan law automatically revokes some provisions for a former spouse after a divorce, but the rule has exceptions. Federal benefit plans, court orders, and the terms of a trust or other document can affect what happens. Reviewing each document and account is the best way to understand what needs attention.

What Does Michigan Law Change Automatically After Divorce?

Michigan’s revocation-on-divorce law generally revokes certain revocable provisions that benefit a former spouse, including some provisions in wills and trusts and some fiduciary appointments. It also generally treats a former spouse as having disclaimed a revoked provision or, for a fiduciary appointment, as having died immediately before the divorce.

There are exceptions. The law may not apply when a governing document, court order, or agreement dividing marital property says otherwise. And federal law can override state revocation rules for some benefit plans. For example, some employer-sponsored retirement plans must follow the beneficiary designation on file under federal law. A divorce judgment or plan rules may also affect the result.

For that reason, do not assume an outdated beneficiary form will be ignored—or that a former spouse will automatically receive the asset. Check the plan’s rules and your divorce judgment, then confirm whether you need to submit a new designation.

Trusts require a separate review. Michigan’s automatic revocation rule generally applies to revocable dispositions and appointments. A former spouse’s interest in an irrevocable trust depends on the trust terms and any applicable court order or marital-property agreement.

Which Estate Planning Documents Should You Review?

After a divorce, review the documents that control inheritance, financial decisions, and medical decisions. Depending on your circumstances, that may include:

• Your will: Check who inherits, who will serve as personal representative, and who is nominated as guardian for minor children. Michigan law may revoke certain revocable provisions for a former spouse, but it does not update the rest of your plan. A new will may be clearer than several amendments. Our wills and trusts work includes reviewing those choices.
• Beneficiary designations: Review life insurance, retirement accounts, and payable-on-death or transfer-on-death accounts. These assets generally pass under their beneficiary designations rather than under your will, though state law, federal law, plan terms, and court orders can affect the outcome. Contact each institution about the process for updating a designation.
• Financial power of attorney: Review who is named to handle financial matters if you cannot act for yourself. Under Michigan law, an agent’s authority generally ends when an action to dissolve the agent’s marriage to the principal is filed, unless the power of attorney provides otherwise. Confirm the document’s terms and choose a new agent if needed.
• Designation of Patient Advocate: Michigan uses this name for the document that appoints someone to make medical decisions if you cannot make them yourself. Review the person you named and update the designation if it no longer reflects your wishes.
• Trust documents: Review the trustee and successor-trustee provisions, as well as who receives trust property. A divorce may revoke some provisions in a revocable trust, but the document, court orders, and any marital-property agreement still matter. Our trust administration work involves trusts that need careful attention to their terms.

Updating one document does not update every account or plan. Keep copies of revised documents and confirmations from financial institutions with your records.

How Do Your Divorce Judgment and Estate Plan Fit Together?

A divorce judgment may require a parent to maintain life insurance for a child or preserve certain assets to secure support or property obligations. Those requirements may continue after a parent’s death, depending on the judgment and related documents. Changing a beneficiary in a way that conflicts with an order could lead to disputes.

Before changing an account or policy tied to your divorce, review the judgment and any related agreements. If you have questions about how those obligations affect your estate plan, coordinate with your divorce lawyer and estate planning attorney. Our divorce and family law work can help address how the judgment fits into the planning process.

When Should You Update Your Estate Plan?

Start reviewing your plan when divorce proceedings begin, and revisit it after the judgment is entered. Michigan law may change the effect of certain appointments or provisions during the process, but the terms of your documents and any court orders can matter. You can discuss whether to name a different financial agent or patient advocate while the divorce is pending.

As you review the plan, make a list of the documents and accounts to check:

• Wills and revocable trusts
• Financial powers of attorney and Designations of Patient Advocate
• Life insurance and retirement-plan beneficiaries
• Accounts with payable-on-death or transfer-on-death beneficiaries
• Any insurance or asset obligations in the divorce judgment

For families in Livonia, Westland, Dearborn, and throughout Wayne County, handling these updates as part of the divorce process can reduce confusion later. At Creighton McLean & Shea PLC, our estate planning lawyers can review your documents and help you understand the options. We are a Livonia law firm serving individuals and families throughout the area.