This article is for those going through divorce, especially individuals with significant wealth. While the insights may apply to others, it focuses on the estate planning needs of ultra-high-net-worth divorcees.

There’s nothing easy about divorce. It can feel as though your entire life changes overnight, and for ultra-high-net-worth (UHNW) individuals, the financial implications can be just as overwhelming as the emotional ones. One of the most overlooked yet critical aspects of this transition is estate planning.

I recently worked with a client, we’ll call her Laura, who had just finalized a divorce after 27 years of marriage. She had always been involved in the family’s finances, but for the first time, she was solely responsible for her own estate. Her first question to me was, “Where do I even begin?”

Start with the Basics, But Don’t Stop There

For someone like Laura, the first step was revisiting her will, powers of attorney, healthcare directives, and trusts. These documents had her ex-spouse listed in nearly every role. Updating them was not just a legal necessity, it was an emotional milestone.

But for ultra-high-net-worth individuals, estate planning goes far beyond the basics.

Trust structures, philanthropic vehicles, business interests, and multi-generational wealth strategies all need to be re-evaluated through a new lens.

Key Considerations

1. Trust Revisions
   If you have revocable or irrevocable trusts naming your ex-spouse or their family, it’s time to revisit them. In some cases, you may need to work with your attorney to decant or restructure the trust.

Story: “The Frozen Trust”
One client, James, had set up an irrevocable life insurance trust years ago that listed his now ex-wife as both trustee and beneficiary. After the divorce, he was surprised to learn he couldn’t simply remove her. We worked with his estate attorney to explore decanting the trust into a new structure that better aligned with his post-divorce goals.

Takeaway: Even irrevocable trusts may have options, though navigating them often requires expert guidance and a bit of patience.

2. Beneficiary Designations
   Retirement accounts, life insurance policies, and some investment accounts bypass your will entirely. These designations need to reflect your current intentions.

Story: “The Accidental Millionaire”
A woman I worked with, Diane, discovered her ex-husband was still listed as the primary beneficiary on a $2 million life insurance policy, two years after their divorce. Had something happened to her, he would have received the payout instead of her children.

Lesson: Beneficiary designations are easy to overlook, but they carry significant weight. A thoughtful review can prevent unintended, and costly, surprises.

3. Asset Titling
   Real estate, business holdings, and investment accounts may need to be retitled, especially if you received them through your divorce settlement.

Story: “The House That Wasn’t Hers”
Ellen thought she owned her vacation home outright after the divorce, but the title was never updated. It was still in both names. When she tried to refinance the mortgage, she hit a wall. We coordinated with her attorney to get everything properly recorded.

Reminder: If your name isn’t on the title, the law may not recognize your ownership, regardless of what the divorce decree says.

4. Philanthropy
   Many UHNW families have donor-advised funds (DAFs) or private foundations. If your charitable goals have changed, or if you previously shared a fund with your ex, it’s time to redefine your giving strategy.

Story: “The DAF Fork”
Tom and Rachel had co-founded a donor-advised fund during their marriage. After their divorce, they had very different visions for the future. Rather than fight over it, we helped them split the fund into two separate DAFs, allowing each to pursue their own charitable passions.

Perspective: Divorce may change your personal life, but it doesn’t have to derail your philanthropic legacy. In fact, it can be an opportunity to refocus your impact.

5. Family Governance
   If you have children, especially adult children, this is a good time to revisit how you communicate about wealth and legacy. A family meeting can be a powerful way to reset expectations and reaffirm your values.

Story: “The Family Reset”
After her divorce, Maria was concerned about how her adult children would perceive the changes to her estate plan. We facilitated a family meeting where she shared her intentions and values. The result? A deeper sense of trust and clarity.

Insight: Estate planning isn’t just about documents, it’s about dialogue. A thoughtful conversation can go a long way toward preserving family harmony.

6. Advanced Estate Planning for Taxable Estates
   For divorcees with estates above the federal exemption limit ($13.99M in 2025), advanced planning is essential to minimize estate taxes and preserve wealth for future generations.

While some strategies, like Spousal Lifetime Access Trusts (SLATs), are no longer applicable post-divorce, other powerful tools remain. These include:

• • Grantor Retained Annuity Trusts (GRATs)
  • Intentionally Defective Grantor Trusts (IDGTs)
  • Dynasty Trusts
  • Charitable Lead or Remainder Trusts

These tools can help shift appreciating assets out of your estate, reduce tax exposure, and support long-term legacy goals.

Story: “The Tax-Savvy Transition”
Robert, a recently divorced entrepreneur, was facing a significant estate tax liability due to the value of his business interests. We worked with his legal team to implement an Intentionally Defective Grantor Trust (IDGT) for the benefit of his children, allowing him to transfer future appreciation out of his estate.

Key Insight: Divorce may change your marital status, but it doesn’t change the IRS’s interest in your estate. Proactive planning with the right tools can make a meaningful difference in what you pass on, and what gets taxed.

A Fresh Start, Financially and Personally

Laura later told me that updating her estate plan was one of the most empowering steps she took after her divorce. “It made me feel like I was finally writing the next chapter of my life,” she said.

That’s the heart of what our team does. We don’t just manage money, we help you align your wealth with your values, your goals, and your new reality.

Your Next Step

If you’re navigating a divorce, or have recently finalized one, don’t wait to revisit your estate plan. The earlier you act, the more control you’ll have over your financial future.

Let’s talk. Schedule a conversation with our team today, and let’s build a plan that reflects your next chapter, with clarity, confidence, and care.

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