Now that you’ve said, “I do,” it’s time for a few more “I do’s” and some “I don’ts” as well. Many, if not most, newlyweds rarely think about estate planning. Of course, if they are getting married for the second time and have children, that can be a huge mistake. But even if this is a first marriage with no children yet, estate planning should not be ignored. I would advise any newly married couple to consider the following Do’s and Don’ts – it could save them a lot of trouble down the road.
First, estate planning is essential when it comes to your assets being protected and distributed according to your wishes in the event of death or incapacity. Let’s review what should be done.
The Do’s:
1. Create a Will: Draft a comprehensive will that specifies beneficiaries and an executor to carry out your wishes.
2. Update Beneficiary Designations: If you already carried life insurance policies, had retirement accounts, and any other financial accounts, make sure to update the primary beneficiary.
3. Consider a Living Will and Healthcare Proxy: These two legal instruments will take little time to create with an estate planning attorney’s assistance, and they are crucial. Don’t assume that just because you’re married, your spouse will be allowed to make healthcare decisions on your behalf if you’re unable to do so. It is best to have it in a legal document.
4. Set Up Durable Powers of Attorney: While often a spouse can handle certain things if you are incapacitated, it is best that you both have appointed trusted individuals as your financial and healthcare agents through durable powers of attorney if something happens to you both.
5. Use the Services of an Estate Planning Attorney: By working with an estate planning lawyer, you’ll rest assured your estate plan is complete and legally valid in your state.
The Don’ts:
1. Procrastinate: Don’t delay estate planning. No one knows what the future holds.
2. Let the Plan Go Out of Date: It is best to ensure your plan keeps up with your life, including updates for children, acquisition of major assets or inheritances, etc. My clients enjoy a complimentary review with me every three years to ensure their plans remain current.
3. Rely Solely on Joint Ownership: While joint ownership can simplify asset transfer, there are better solutions than this. Consult with an estate planning attorney to determine the most appropriate ownership structure for your assets.
4. Leave Out Digital Assets: In the digital age, don’t forget to account for digital assets like social media accounts, online financial accounts, and cryptocurrency. Specify how you want these assets to be handled.
5. Forget About Life Insurance: Besides changing the primary beneficiary, this might be the time to provide financial security for your spouse if needed.
Once you have your estate plan started, making updates over the years is a simple task. As you accumulate wealth, your estate planning attorney might recommend a trust. And there are other legal instruments to consider for exceptional circumstances such as a special needs child. Working with an estate planning attorney is the best way to ensure you have protected your hard-earned assets and one another. Feel free to call me to schedule a consultation at 513-399-7526 or visit my website at www.davidlefton.com to schedule a confidential consultation.