Estate Planning for Newlyweds

by Jenny Ling, Esq.

Along with buying a dress, picking out flowers, and selecting a song for your first dance, if you are a newlywed or about to tie the knot, you should also add “estate planning” to your wedding checklist.  We know that thinking about your or your spouse’s eventual death or potential incapacity can be hard, but getting your estate plan done is the greatest gift you can give to your spouse-to-be.

Here are 4 steps that all newlyweds should take to ensure that you start your marriage off on the right foot:

Review Your Wills

Many newlyweds come into their marriage without an estate plan already in place.  Every person, no matter how old they are or how much money they have, needs a will.  Even if you had a will before getting married, you should review and update it now. 

In your will, you will determine who should be your personal representative if you pass, the person who manages your affairs and distributes your assets.  You probably want to name your spouse to act as personal representative but you should also name back-ups, in case something happens to your spouse as well.  Your will also names the guardians for your children and can even make a plan for your pets.

Do You Need a Trust?

A Trust is a method for transferring your estate and can enable you to avoid probate.  A trust agreement sets out how your assets are to be managed during your life and distributed after your death.  After you set up a revocable living trust, you transfer assets to your trust, which you control.  Upon your death, there is nothing for the courts to control because your trust owns the assets.  The trust is revocable, which means that during your lifetime, you can change the terms of the trust or even terminate it.  The concept is simple, but this is what keeps you and your family out of the courts.

Not every person needs a trust.  An experienced estate planning attorney can help you determine if your estate planning goals and objectives require a trust.  If this is your second marriage, or if you have children from a previous relationship, a trust may be the only way to protect your children.  There are a few other special circumstances where a trust is the only way to protect your family:  if you want to leave assets to a child with special needs, if you have a family member who is addicted to drugs, if you own out-of-state property, or if you are at risk of owing estate taxes.

Update Your Powers of Attorney

Along with a will, and possibly a trust, all comprehensive estate plans should include powers of attorney and a health care directive.  Your powers of attorney designate who you want to manage your affairs if you become incapacitated.  You will need powers of attorney for financial matters as well as health care decision making.  Incapacity can be temporary – you are expected to recover eventually; or it can be the start of a long event that ends in your death.  Incapacity can last for many years and if you don’t execute powers of attorney, your new spouse may have to go to court to ask a judge for permission to make financial and medical decisions for you.

It’s a hard discussion to have, but you should also discuss with your new spouse what you would like you care to look like if you become terminally incapacitated, in the event you cannot otherwise communicate your wishes.  You should sign an Advanced Healthcare Directive that will give your loved ones detailed information about what you want your end of life care to look like.  It is equally important to talk with your loved ones so they can ensure your care reflects your goals and values.

Review your beneficiary designations to ensure they reflect your life now

For some assets, like your checking and savings accounts, retirement accounts, life insurance, military benefits, you designated a beneficiary when you set up the accounts.  For accounts that you set up through work, those beneficiary designations can be overlooked in the crush of paperwork you completed as a new employee.  But for certain assets (like retirement, life insurance, and bank accounts), a beneficiary designation could be used to leave the asset to a loved one.  However, it can be more complicated when the beneficiary is a minor or has special needs.  By working with an attorney to set up a comprehensive plan, you can ensure the assets are distributed according to your wishes.

If you are planning to get married, or you just got married 6 months or 6 years ago, now is the time to make sure you have an estate plan in place.  At The Law Offices of Jenny Ling, PLLC, we can help you create a plan that handles your assets in the exact manner you wish, taking into account all of your family’s dynamics, so your death or incapacity won’t be any more painful or expensive for your family than it needs to be.  We offer flat-fee, customizable plans that fit your life so you can be certain that your family is taken care of, and that there is no question what your wishes are.

If you are ready to make a comprehensive estate plan, contact our offices to schedule your complimentary 15-minute phone consultation and Make a Plan!

Jenny Ling is a partner at the Law Offices of Jenny Ling, PLLC.  She focuses her practices on estate planning, business succession planning, business and bankruptcy.