Estate Planning for the Newly Married

Now is the perfect time to start working on an estate plan. As newlyweds, you are likely deciding which of your accounts and property (your assets) to combine and how to turn two households into one. You may also be setting up new bank accounts and creating a plan for paying shared bills and other expenses. You may not be thinking about estate planning for the newly married, but perhaps you should.

You can use that time, energy, and work to leapfrog into planning for your future to prepare you for the following stages of your new life together.

Why Think About Estate Planning at This Point?

Even if you have little money or own many valuables, you may have more than you think. Regardless of what you currently own, putting together a will or a trust can be straightforward since you are likely very aware of what you own and how you own it.

You may have heard of state laws that give your property to your spouse if you do not have a will. Unfortunately, this may not always be true—or at least may not be the whole story. State laws that direct where your assets go when you die without a will—known as intestacy laws—vary by state and sometimes have unexpected results. Also, distributing your assets through intestacy laws requires your estate to go through probate, a court proceeding that can take months or even years to resolve. A comprehensive estate plan can give you the peace of mind of knowing that your loved ones are cared for if anything happens to you. If avoiding probate and having control over who receives your assets is crucial to you, the proper estate planning tools can make this wish come true.

Although you have just embarked on a new chapter in your life, and more changes may be coming, creating an estate plan now is still important. Once you have an initial plan, you can easily update it as your circumstances and needs change.

Who Can Make Decisions for Me If I Cannot?

A financial power of attorney is a legal tool that allows you to designate an agent (often a spouse) to make financial decisions on your behalf. Your agent can pay your bills, sign contracts, manage insurance policies, file lawsuits, and more. Depending on the document’s exact language, you can grant your agent broad powers to do almost anything you could do or more limited powers for a specific issue, situation, or period. Subject to state law (as some states do not allow for delayed authority), you may also be able to designate when your agent is allowed to act on your behalf; they may be allowed to act immediately when you sign the document, even if you are well and able to manage your affairs, or they may have to wait until it is determined that you can no longer manage your affairs.

A medical power of attorney (sometimes referred to as a designation of health care surrogate or health care advocate designation) is similar to a financial power of attorney in that it gives an agent the legal authority to make medical decisions on your behalf when you cannot make them yourself. Unlike a financial power of attorney, a medical power of attorney typically takes effect only if you cannot make decisions on your own or communicate your wishes, such as in an emergency or because of illness. Some states allow you to grant the agent immediate authority to access health records and make medical decisions on your behalf. You may name your new spouse as an agent under either or both powers of attorney. Suppose you fail to create or update a comprehensive estate plan. In that case, your new spouse will have no legal authority to act for you on financial or medical matters without court intervention—a lengthy and costly process that most people want to avoid.

What Kind of Care Would I Want?

An advance directive (sometimes also known as a living will) is a tool that defines your wishes regarding end-of-life care if you are unable to make those decisions for yourself. Think of this document as an emotional insurance policy: You make decisions now so the people you love will not have to in the future when they are already under a great deal of emotional stress. However, note that not all states recognize advance directives as legally binding.

Who Will Look After the Kids?

If you do not yet have kids but want them someday, realize that an estate plan is essential for families with children. The number one concern for most new parents is who will raise their children if they cannot. If parents want a say in whom the court will appoint as legal guardians of their children if neither legal parent is alive or available, they need a will or a standalone nomination (if your state allows it) to designate their guardian choices. Without a will, the court will appoint a guardian based on the priority set in state law and on what the judge feels is in the children’s best interests. The court’s ultimate choice may not be the person you would have chosen.

As you start your new life together, one of the best ways to begin is by planning for the future, whatever it may bring. We help families of all ages and kinds and would be delighted to help you. Book a free Discovery Call today.