Estate Planning For the Newly Married
Now is the perfect time to start working on an estate plan—because, as newlyweds, you may not have a list of your accounts, but you've effectively just done a working inventory of your possessions—as you've figured out how to consolidate two households into one. You've already been working on the new banking and shared responsibility of bills and taxes and so forth.
Posted on September 5, 2017
Use that all time and energy and work as a leapfrog into planning for your future—so you'll be that much more prepared for the house, the kids, and the next stages of your new life together.
Why Think About Estate Planning At This Point?
Even if you have few assets, as we just talked about, you have more than you think. Still, putting together a will or a trust probably is very straightforward at this point, since you just did that accounting of your collective assets.
You may have heard of state laws that give your property to a spouse, if you don't have a will. These laws—known as intestacy laws—vary by state and can sometimes have results you wouldn’t expect. And, intestacy requires your estate going to probate—a court proceeding that can take months, even years, to resolve. So a basic estate plan should give you some peace of mind—knowing loved ones are taken care of, if anything should happen.
You can even plan for property you don't yet own (a house you may buy some day) and provide for children whenever they arrive on the scene. And once you have that initial plan in place, you can easily update it as your circumstances and needs change.
Furthermore, if you already have a sizable amount of assets then estate planning may lead to tax benefits, now and in the future.
Who Can Make Decisions For Me, If I Can't?
In the U.S., a power of attorney (POA) is a legal document that designates someone else (often a spouse) to make financial and other decisions on your behalf. In the financial realm, a POA can sign contracts, file lawsuits on your behalf, and more. Depending on the exact language, you can grant the POA broad powers, or something more limited to an issue or situation.
One specific form of POA is in effect only if you are unable to make decisions on your own—such as an emergency or illness. And you can have that type of POA for both the financial side of things, as well as one relating to your medical care.
What Kind of Care Would I Want?
An advanced directive (also known as a living will) is a document that makes clear the kinds of medical interventions you'd prefer if you're unable to make decisions for yourself. In some ways, think of this as an emotional insurance policy: You make decisions now, so the people you love won't have to. This can also make it easier for your spouse to make decisions if necessary, as long as you name them as a medical decision maker.
Who Will Look After The Kids?
If you don't yet have kids but want them someday, realize that an estate plan is essential for families with children. The state statute providing assets for a spouse will probably also include some inheritance for children. However, when it comes to guardianship, you need a will to designate caregivers for the children, should something happen to both parents. Without a will, the court decides on the children's caregiver, and the court may select someone you don’t want.
As you start your new life together, one of the best ways to begin is by planning for the future, and whatever it may bring. We've been helping families of all ages and kinds for decades, and we'd be delighted to help you, so contact our professionals today.
More from our blog…
What Is a Qualified Personal Residence Trust (QPRT)?
A qualified personal residence trust (QPRT) is an irrevocable trust used to achieve estate and gift tax savings. The basic idea behind a QPRT is to [...]
Limited Power of Attorney in Estate Planning
A power of attorney (POA) is a document that authorizes one or more parties (known as the “agent” or “attorney-in-fact”) to act on behalf of [...]
What Is IRMAA and How Does It Affect My Medicare Premiums?
As we near retirement, we may assume that once Medicare kicks in, our medical insurance premiums will be fixed. However, many people may not realize that [...]
What Is Memory Care, and What Are Its Benefits?
Memory care is specialized care for patients living with Alzheimer’s disease, dementia, or other conditions that cause memory loss. Hospitals and nursing homes may have memory [...]