Earlier this week, we discussed the effect a well drafted separation agreement has on an individual’s estate plan. But what effect does a divorce have?
In most instances, going through a divorce can be stressful and contentious. As a result, necessary changes to an individual’s estate plan may be overlooked. Fortunately, section 17(2) of the Succession Law Reform Act provides divorced couples with some piece of mind:
“Except when a contrary intention appears by the will, where, after the testator makes a will, his or her marriage is terminated by a judgment absolute of divorce or is declared a nullity,
(a) a devise or bequest of a beneficial interest in property to his or her former spouse;
(b) an appointment of his or her former spouse as executor or trustee; and
(c) the conferring of a general or special power of appointment on his or her former spouse,
are revoked and the will shall be construed as if the former spouse had predeceased the testator.”
While the SLRA provides a divorced spouse’s estate with some protection against honouring unintended gifts after divorce, the termination of a marriage is nonetheless a good time for divorced persons to review their estate plans, especially as joint bank accounts and beneficiary designations do not have the benefit of the remedial provisions of the aforementioned statute.
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