Divorce is not only an emotional transition—it’s also a major legal and financial turning point. When a marriage ends, it’s essential to revisit your estate plan to ensure it reflects your new circumstances and protects your future. Many people don’t realize that estate planning documents created during a marriage can remain legally valid after divorce unless explicitly updated. That can lead to unintended consequences such as an ex-spouse controlling health care decisions or inheriting significant assets.

As we guide clients through post-divorce estate planning, our goal is to provide clarity, protection, and peace of mind. Whether you’ve recently finalized your divorce or it’s been years, reviewing and updating your estate documents is one of the most important steps you can take.

Understanding the Legal Impact of Divorce on Existing Estate Plans

A finalized divorce does not automatically revoke or change the legal documents created during the marriage. This means:

• Wills and trusts that include your former spouse may still be enforceable.
  
  
• Health care proxies and powers of attorney could give your ex control over medical or financial decisions.
  
  
• Beneficiary designations on life insurance and retirement accounts are not always nullified by divorce.

Some states have statutes that revoke provisions for a former spouse upon divorce, but relying on default laws is risky. If you’ve moved to a new state or your estate plan was drafted long ago, these laws may not apply as you expect. The safest and most effective route is to proactively revise all documents with the help of an experienced estate planning attorney.

Updating Wills, Trusts, and Power of Attorney Documents

After a divorce, we recommend updating these essential estate planning documents as soon as possible:

1. Last Will and Testament
   
   
   • Remove your former spouse as an executor or beneficiary, if desired.
     
     
   • Name a new executor and clearly state your updated intentions for asset distribution.
     
     
2. Revocable Living Trust
   
   
   • Modify trustee appointments and beneficiary provisions.
     
     
   • Update provisions that may reference joint property or shared responsibilities.
     
     
3. Health Care Proxy / Advance Directive
   
   
   • Appoint a trusted family member or friend to make medical decisions if you’re incapacitated.
     
     
4. Durable Power of Attorney
   
   
   • Designate someone new to manage your financial affairs in case of incapacity.
     
     

These updates are especially critical if your previous documents granted broad authority to your former spouse. Without revisions, your ex could retain control over key decisions affecting your finances, health, and estate—long after your relationship has legally ended.

Changing Beneficiary Designations on Retirement Accounts and Insurance Policies

One of the most commonly overlooked updates after divorce is beneficiary designations on retirement accounts, life insurance policies, and other payable-on-death assets. These designations often override what’s written in a will, meaning that if your ex-spouse is still listed, they may legally inherit the funds—regardless of your current wishes.

Accounts that typically require beneficiary updates include:

• IRAs and 401(k)s
  
  
• Pension plans
  
  
• Life insurance policies
  
  
• Annuities
  
  
• Transfer-on-death investment or bank accounts

We encourage clients to review all accounts and confirm that their chosen beneficiaries reflect their current relationships and long-term goals. This is especially important if children, siblings, or new partners are now the intended recipients.

Planning for Minor Children and Guardianship Considerations

If you have minor children, estate planning after divorce becomes even more essential. While a surviving parent typically gains custody, it’s still important to name a preferred guardian in your will in case both parents become unable to care for the children.

Key considerations include:

• Naming a guardian you trust to provide long-term care in the event of your passing.
  
  
• Establishing a trust to manage assets on behalf of your children until they reach adulthood.
  
  
• Appointing a trustee who will act in the best interest of your children and ensure responsible financial management.

Without clear directives, a court may appoint someone to manage your child’s inheritance—possibly someone you wouldn’t have chosen. Updating these details provides reassurance that your children will be cared for according to your values and intentions.

Avoiding Unintended Inheritances and Ensuring Your New Wishes Are Honored

Even after divorce, outdated estate documents can lead to significant legal challenges and family conflict. If your ex is unintentionally left as a beneficiary or fiduciary, it could result in probate disputes, financial hardship for your current loved ones, or delays in asset distribution.

To prevent this, we recommend:

• Reviewing your entire estate plan holistically, rather than updating documents in isolation.
  
  
• Ensuring your new partner or spouse, if applicable, is legally protected and included where appropriate.
  
  
• Confirming that your personal property, digital assets, and real estate are clearly assigned and aligned with your post-divorce goals.
  
  

By taking proactive steps, you can ensure your estate plan reflects your current reality—not your past relationship—and that your legacy is handled the way you intend.

Securing Your Future After Divorce

Divorce is a fresh start—and your estate plan should reflect that. At Donohue, O’Connell & Riley, we guide clients through the process of updating their estate plans with clarity, empathy, and precision. Whether you're reestablishing your will, modifying beneficiary designations, or planning for your children’s future, our experienced team is here to help you protect what matters most.

Let’s make sure your plan supports your life today and your goals for tomorrow.
Contact us at docrlaw.com to schedule a consultation.

When we think about estate planning, our minds often go straight to wills and trusts—but powers of attorney are just as vital. These legal documents help ensure that if something unexpected happens and we become unable to make decisions for ourselves, a trusted person can step in to manage important aspects of our lives. From paying bills to making medical choices, powers of attorney provide protection, flexibility, and clarity during times of uncertainty. Creating these documents now can save our families from future stress and confusion.

The Difference Between Medical and Financial Powers of Attorney

There are two primary types of powers of attorney, and each serves a distinct role:

1. Medical Power of Attorney (Health Care Proxy)
   This document allows us to name someone—called a health care agent or proxy—to make medical decisions on our behalf if we’re ever unable to do so. This includes decisions about treatments, surgeries, medications, and end-of-life care. It’s a key part of any comprehensive health care directive.
2. Financial Power of Attorney
   This document authorizes a chosen agent to handle financial matters such as paying bills, managing investments, selling property, or accessing bank accounts. It can be broad or limited in scope, and it can take effect immediately or only upon incapacity.

Having both types in place ensures that all aspects of our well-being—physical and financial—are covered should we need support.

Choosing a Trustworthy and Capable Agent

Selecting the right person to act as your agent under a power of attorney is one of the most important estate planning decisions we can make. This individual will be handling personal, sensitive, and often complex matters during a vulnerable time.

Here are a few key qualities to look for:

• Trustworthiness: Your agent should be someone you believe will act in your best interests and follow your instructions.
  
  
• Financial or Medical Competence: Depending on the type of power of attorney, choose someone who understands finances or health care decisions—or at least someone who knows when to ask for expert guidance.
  
  
• Proximity: Having someone who lives nearby can be helpful in emergencies or for tasks that require in-person attention.
  
  
• Reliability: Your agent should be responsible, communicative, and able to manage potentially stressful or urgent situations.

It’s also a good idea to name a backup agent in case your primary choice is unable or unwilling to serve when needed.

How Powers of Attorney Function During Incapacity

One of the most critical times a power of attorney is needed is when we’re no longer able to manage our affairs due to illness, injury, or cognitive decline. In these situations, time is often of the essence. With a valid power of attorney already in place, our chosen agent can step in immediately—avoiding court delays and the need for a guardianship proceeding.

Depending on how the document is structured, powers of attorney can be "durable" (remaining in effect during incapacity) or "springing" (only becoming effective upon a doctor’s certification of incapacity). A well-drafted durable power of attorney ensures that someone we trust is empowered to act swiftly and confidently if the unexpected occurs.

When and How to Update Your Documents

Powers of attorney are not “set-it-and-forget-it” documents. Just like other estate planning tools, they need to be reviewed and updated as our lives and relationships change.

You should consider updating your powers of attorney if:

• Your named agent is no longer available or the best choice
  
  
• You've moved to another state (as laws can vary)
  
  
• You've experienced a major life event like divorce, marriage, or the birth of a child
  
  
• It’s been more than 3–5 years since the document was signed

To update your documents, we recommend working with an estate planning attorney to revoke the old powers and properly execute new ones. This ensures that financial institutions, medical providers, and family members have clear, current instructions.

The Peace of Mind Strong Planning Brings to Families

Creating powers of attorney is about more than just legal protection—it’s about reducing uncertainty and stress for those we love. When we proactively assign decision-making authority and communicate our wishes, we relieve our families from having to guess or argue during a crisis.

Well-prepared powers of attorney:

• Provide legal clarity in high-stress moments
  
  
• Minimize conflict and confusion among family members
  
  
• Prevent delays in accessing bank accounts or authorizing treatment
  
  
• Offer dignity and control in the face of life’s unpredictable challenges

By taking this step, we’re giving a valuable gift to our families: peace of mind and the ability to focus on care rather than red tape.

Plan Ahead with Trusted Legal Guidance

Powers of attorney are a vital part of any strong estate plan, and ensuring they’re thoughtfully drafted and legally sound can make all the difference when the time comes. At Donohue, O’Connell & Riley, we guide individuals and families through every aspect of the estate planning process—including creating and updating powers of attorney—to protect what matters most.

Whether you’re starting from scratch or reviewing existing documents, we’re here to help you plan with confidence.
Contact us today at docrlaw.com to schedule a consultation and take the next step in securing your future.

As more couples choose to build lives together without getting married, estate planning becomes an essential tool for protecting their rights and wishes. Unlike married spouses, unmarried partners don’t automatically inherit from each other or gain authority in legal or medical decisions without specific documents in place. This can leave even the most committed partners vulnerable in times of crisis.

Estate planning for unmarried couples requires proactive steps and thoughtful documentation to ensure your partner is protected—both legally and financially. Whether you’re sharing a home, finances, or a life together, creating a personalized plan helps provide clarity, continuity, and peace of mind.

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Legal Challenges Faced by Unmarried Partners

Without the legal benefits of marriage, unmarried couples face several unique hurdles:

• No automatic inheritance rights – If one partner passes away without a will or trust, the surviving partner generally has no legal claim to the estate.
  
  
• Limited authority in emergencies – Without legal documentation, partners may be denied access to make healthcare or financial decisions on each other’s behalf.
  
  
• Family disputes – In the absence of an estate plan, family members may contest your partner’s rights to assets or even shared property.
  
  
• Tax implications – Unmarried partners may face higher tax burdens or miss out on spousal tax exemptions.
  
  

Planning ahead with the right legal tools can help you overcome these challenges and ensure your wishes are honored.

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Using Wills and Trusts to Protect Each Other

One of the most effective ways to secure your partner’s future is through clearly drafted wills and trusts. These documents spell out your intentions and create legal authority that overrides default state laws.

Wills
A will allows you to:

• Name your partner as a beneficiary of your estate
  
  
• Designate an executor you trust to handle your affairs
  
  
• Appoint a guardian if you share children
  
  

Trusts
A trust can offer added protection and privacy. Benefits include:

• Avoiding probate and the associated delays
  
  
• Providing long-term management of assets for your partner
  
  
• Reducing estate tax exposure in some cases
  
  

By including your partner in these essential documents, you provide both legal authority and emotional reassurance.

Health Care and Financial Decision-Making Authority

In emergency situations, having clear legal authority to make decisions on your partner’s behalf is critical. Unfortunately, unmarried couples do not automatically have this right without documented permission.

Key documents to include in your estate plan:

• Health Care Proxy – Appoints your partner to make medical decisions if you’re incapacitated.
  
  
• Living Will – Details your preferences for end-of-life care, giving your partner guidance and peace of mind.
  
  
• Durable Power of Attorney – Allows your partner to manage your finances, pay bills, and handle transactions if you become unable to do so.
  
  

Putting these documents in place ensures your partner can act on your behalf when it matters most, without unnecessary delays or legal barriers.

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Beneficiary Designations Outside of Marriage

Many assets pass directly to a named beneficiary and are not governed by a will or trust. For unmarried couples, making intentional beneficiary choices is vital.

Common assets with beneficiary designations include:

• Retirement accounts (401(k), IRA)
  
  
• Life insurance policies
  
  
• Bank accounts with payable-on-death (POD) designations
  
  
• Investment accounts with transfer-on-death (TOD) designations
  
  

Make sure these designations are up to date and accurately reflect your wishes. In the absence of marriage, failing to name your partner can result in those assets being distributed to next of kin instead.

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Planning for Shared Assets and Property

If you and your partner own property together or have shared financial responsibilities, it’s essential to plan for how those assets will be handled.

Consider the following strategies:

• Joint ownership with rights of survivorship – Ensures that property automatically passes to your partner upon death.
  
  
• Cohabitation agreements – Document financial arrangements, ownership percentages, and what happens if the relationship ends or one partner passes away.
  
  
• Trusts – Provide additional control over how property is distributed, especially if children or other beneficiaries are involved.
  
  

By clearly outlining how shared assets are to be managed, you reduce the risk of future disputes and help protect the life you’ve built together.

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Build a Plan That Reflects Your Commitment

Estate planning for unmarried couples is not just about paperwork—it’s about protecting your shared life and honoring the commitments you’ve made to each other. Taking proactive steps ensures that your partner is recognized and empowered, even when the law doesn’t automatically offer that protection.

At Donohue, O’Connell & Riley, we help couples of all kinds create thoughtful, customized estate plans that reflect their values and relationships. If you’re ready to safeguard your future together, we’re here to guide you every step of the way. <br>
<a href="/contact-us/">Contact us</a> to schedule a consultation and get started.

As we age, the cost of long-term care becomes an increasing concern. Whether it’s assisted living, in-home care, or nursing home expenses, these costs can quickly deplete savings if not planned for in advance. Many individuals assume Medicare will cover their long-term care needs, but unfortunately, that’s not the case for most services. Without proper planning, families may find themselves facing difficult financial decisions. The good news is that there are strategies to help protect assets while ensuring access to quality care.

The Rising Costs of Assisted Living and Nursing Home Care

Long-term care costs have risen significantly over the past few decades, and they are expected to continue increasing. Consider these average annual costs:

• Assisted living facility: $50,000–$60,000
  
  
• Nursing home (semi-private room): $90,000–$100,000
  
  
• Nursing home (private room): $110,000+
  
  
• In-home care services: $25–$30 per hour
  
  

For many families, these expenses can be overwhelming, especially if care is needed for several years. Without a plan in place, assets like retirement savings, real estate, or other investments may need to be liquidated to cover the costs. This is why incorporating long-term care strategies into estate planning is essential.

Medicaid Planning and Asset Protection Strategies

Medicaid is one of the few government programs that covers long-term care costs, but qualifying for benefits requires careful planning. Because Medicaid has strict asset and income limits, many individuals mistakenly assume they must spend down all their savings before becoming eligible. However, there are legal strategies that allow individuals to protect their assets while still qualifying for Medicaid, including:

• Medicaid Asset Protection Trusts (MAPTs): These irrevocable trusts allow individuals to transfer assets while retaining some level of benefit, but they must be established at least five years before applying for Medicaid.
  
  
• Spousal Protections: The community spouse (the one not requiring care) can keep a portion of assets and income while the other spouse applies for Medicaid.
  
  
• Gifting Strategies: With proper planning, some assets can be transferred to children or other loved ones without jeopardizing Medicaid eligibility.
  
  
• Exempt Assets: Some assets, such as a primary residence (in certain cases), may be exempt from Medicaid calculations.

Proper Medicaid planning should be done well in advance to ensure eligibility without compromising financial security.

How Long-Term Care Insurance Fits into an Estate Plan

Long-term care insurance (LTCI) can play a vital role in preserving your estate while covering the costs of care. Unlike Medicaid, which requires meeting strict asset and income limits, LTCI allows individuals to maintain financial independence while still receiving quality care. Policies vary widely, but key benefits of long-term care insurance include:

• Coverage for Various Types of Care – LTCI can cover nursing home care, assisted living, in-home care, and adult day care services.
  
  
• Protecting Assets for Heirs – By offsetting care costs, LTCI helps preserve savings and assets that can be passed down to family members.
  
  
• Customizable Coverage – Some policies allow policyholders to select daily benefit amounts, coverage periods, and inflation protection.

Since premiums are typically lower when policies are purchased earlier in life, it’s wise to consider LTCI as part of a broader estate and retirement plan before health issues arise.

Using Trusts to Preserve Assets While Qualifying for Benefits

Trusts can be an essential tool for safeguarding assets while ensuring access to long-term care benefits. Depending on individual financial and family situations, different types of trusts can provide protection:

• Medicaid Asset Protection Trusts (MAPTs) – By transferring assets into an irrevocable trust at least five years before applying for Medicaid, individuals can meet Medicaid eligibility requirements without losing everything to care expenses.
  
  
• Revocable Living Trusts – These trusts allow assets to bypass probate and can include provisions for long-term care funding while providing more flexibility than irrevocable trusts.
  
  
• Special Needs Trusts – If a loved one receiving long-term care has a disability, a special needs trust can preserve their eligibility for government assistance while supplementing their care.

Trusts must be structured carefully to ensure compliance with Medicaid rules while achieving asset protection goals. Working with an estate planning attorney can help determine the right trust strategy for your situation.

Family Caregiving Considerations and Financial Planning

Many families prefer to keep care within the family rather than relying on outside facilities. While this can be a cost-saving approach, it comes with its own financial and legal challenges. Planning ahead for family caregiving can help avoid unnecessary stress and ensure that care responsibilities are fairly distributed. Important considerations include:

• Compensating a Family Caregiver – Establishing a formal caregiver agreement can provide financial support for a family member who takes on the role of caregiver.
  
  
• Coordinating Family Contributions – Some families choose to pool financial resources to cover care expenses, which should be structured carefully in legal agreements.
  
  
• Utilizing Government Programs – Some states offer Medicaid-funded programs that pay family caregivers for providing care at home.

Without a clear plan, caregiving can create financial strain and emotional stress among family members. Addressing these concerns in an estate plan ensures that care needs are met without unnecessary conflict.

Securing Your Future with a Thoughtful Long-Term Care Plan

The costs of long-term care can be staggering, but with proper planning, you can protect your estate while ensuring access to the care you or your loved ones may need. Whether through Medicaid planning, long-term care insurance, trusts, or family caregiving strategies, there are multiple ways to preserve assets while securing quality care.

At Donohue, O’Connell & Riley, we help individuals and families develop personalized estate plans that account for long-term care needs while maximizing asset protection. Our experienced team is here to guide you through the complexities of long-term care planning, ensuring that your financial legacy remains intact. Contact us today to discuss your options and create a plan that provides security for you and your loved ones.

Over the years, we have had the privilege to develop tax-efficient plans for clients from all walks of life. With this year’s tax season still fresh in the rear-view mirror, clients often ask us after the fact of how they can do better next year to optimize their personal and professional income tax picture. Like many other things in life, preparing and implementing these structures in advance is key to taking full advantage of the opportunities that are available. Many of these ideas can be implemented by almost anyone who is looking to trim their tax bill. Read on for some tax tips that are accessible, but can have game-changing impact that will put a spring in your step.

 

1. Asset Location

Don’t just think about asset allocation, think about asset location. Many investment advisors invest their client’s assets with the same allocation across all account types, without taking the tax characteristics of those accounts into consideration. Take, for example, the client whose assets are divided into a typical balanced portfolio, allocated 60% to equities, and 40% to fixed income. If a client employs the same strategy across both tax-deferred and taxable accounts, the tax-deferred account will miss out on a step-up in basis at the death of the taxpayer, while converting capital gains into ordinary income. Conversely, a client who owns fixed income securities in a taxable account will not benefit from a step-up in basis or perhaps a small one at best. Thus, when clients reach retirement age, we counsel them to hold their fixed income investments in their retirement accounts and keep their equity allocation in taxable accounts. With a potential basis step-up and a 0% capital gains tax rate for up to $94,050 for couples without significant other income, this could result in a substantial tax savings, for them and their families.

 

2. ROTH IRAs

Harnessing the power of tax-free compounded growth is perhaps one of the seven wonders of the financial world. The best gift you can give your child or grandchild is not a 529 college savings account but help funding a Roth IRA early in their career. A parent or grandparent who helps a child or grandchild contribute to a Roth IRA for four years from age 18–22, can expect him or her to have a retirement account worth over $3 million at age 72 without any further contributions. The only catch: the grandchildren must have earned income. Unlike a 529 plan, retirement savings are not considered an available asset to the student for financial aid purposes. The downside to Roth retirement accounts is that contribution levels are often limited. It is therefore important to start early, for example when young people are still in the process of training and earning degrees, and are in a relatively low income tax bracket. 529 accounts still have their place for those who do not expect to receive financial aid. Also, up to $35,000 of unused funds in a 529 plan can be converted to a Roth IRA under certain conditions.

If you want other creative ideas on paying for higher education, check out our booklet, “Solving the Higher Education Puzzle”.

 

3. health savings accounts

Health Savings Accounts can be leveraged into additional retirement savings. Nowadays, even people who have good quality health insurance can be eligible for contributions to a Health Savings Account. For a family, the 2025 deduction is $8,300. After age 55, a taxpayer can contribute an additional $1,000 dollars per year. Individual contributions are set at half that amount. These funds can be used tax-free at any time for qualified healthcare expenditures, making those expenditures deductible even if a taxpayer does not itemize. After age 65 they can be withdrawn much like a traditional IRA. A couple who contributes the maximum amount and invests the underlying funds in a broad-based index fund starting at age 50 would have over $1 million of HSA dollars at age 75. This could also be used as an alternative form of long-term care insurance and can fund nursing home care tax-free.

 

4. domicile

How your income is taxed in retirement can greatly affect your quality of life, so choose your retirement tax domicile wisely. Retirees should consider their own lifestyle choices and how this can impact retirement savings. For example, those who expect to buy big ticket items, such as cars and boats should look to jurisdictions with low or no sales tax. Conversely, those who have substantial amounts stored in a pre-tax retirement account should instead look to states that have low levels of income tax. Finally, for those of modest means, finding a state with low property taxes, where essentials such as food and clothing are not taxed in retirement, may prove the best
route possible. 

 

5. business ownership

If you don’t own your own business, consider starting one. While this may not be possible for everyone, the tax advantages to business owners are undeniable. By providing the ability to deduct expenses prior to the imposition of taxation, business owners have the ability to reduce their taxes through a number of means, including renting property they own to their business, writing off vehicles that are used in connection with the production of income, employing their children, and more. They can also setup retirement and profit-sharing accounts for themselves, their spouses and children.

 

6. charitable giving

Lifetime charitable giving gives the donor both an income and estate tax deduction at once, and along with the financial benefit, the donor receives the joy of seeing his or her charitable contribution go to work. If you have more money in your retirement account than you need, you can make a direct gift of up to $100,000 a year to a qualified charity without declaring the income from the retirement plan or needing to itemize deductions. For those in the top federal income tax bracket of about 40%, and with the estate tax bracket at 40%, this means that 80% of your charitable giving (or maybe more if you live in a state that assesses income and/or estate taxes) will be offset by tax savings. It’s a great way to redirect funds that would otherwise be mostly consumed by taxes to a worthy cause.