It’s June, the traditional month for weddings, which, of course, means the traditional month for the search for the perfect wedding gift. Gift registries have helped enormously, but if you’re like me, it doesn’t feel very personal to go online and order a few place settings of dinnerware for the happy couple. I like to try to put a little more thought into wedding gifts because I’d like the gift to be truly meaningful for the recipients. And this is why I think the perfect wedding gift (wait for it) just might be to pay for the newlywed’s estate plan. Before you reject this idea, think about it. Even if both of them already have a will, etc., once wed, they need to update an estate plan for the two of them. But if they are young, there is a good chance neither of them has a will, let alone an estate plan.
The following are the key benefits of an estate plan (or updated estate plan) for the new couple. I think you’ll agree, altogether, that they deliver a more useful, meaningful, and valuable gift than a couple of place settings of dinnerware.
Will: In Ohio, once married, the surviving spouse automatically inherits assets. That said, each individual could have assets, such as a vintage car, antique furniture, or other property they bring into their marriage that they have always promised to leave to a sibling, a friend, or charity. If that promise is not legally documented, such as in a will, it could create, at best, an uncomfortable or awkward situation at some point, or at worst, a fallout among various family members. These newlyweds aren’t thinking of their death, of course, but tragedy can happen; by having a detailed will, they can spare their loved ones from avoidable problems.
Medical power of attorney: Generally speaking, should one of the individuals be in a life-threatening medical emergency, the healthcare providers will permit the spouse to make medical decisions related to care. However, if the individual already has a medical power of attorney giving that permission to only a sibling or parent, for example, things could get extremely complicated. In rare cases, some medical facilities won’t even allow a spouse to be involved unless a legal document has been executed. Why risk it?
General power of attorney: Having a power of attorney will be useful in many ways, especially if the couple maintains separate bank accounts. One example is making sure essential bills, like mortgage payments, can still be paid on time, even if the individual who makes that payment is incapacitated. Yes, you can update your bank accounts to give one another access. However, having the power of attorney can be an “umbrella” way to ensure things go smoothly. Another example is when the couple buys a new home, and suddenly, one needs to go out of the country on business for an extended period. And, of course, the closing is scheduled during that business trip. Power of attorney takes care of that – the closing can proceed.
Trust: First, what is a trust? It is a legal relationship. In a trust, assets are entrusted to a trustee who holds legal title and manages the assets until they are distributed to the eventual beneficiary. Often, trusts are set up to help heirs avoid probate. They can save a lot of time and expense. Assets such as property, autos, etc. can be placed in a trust. Having one isn’t required by law, but it can be a good idea as a couple acquires more property and their family grows.
But what is the most important benefit of gifting an estate plan (or updated one) to newlyweds? The peace of mind that comes with having your “affairs in order”! Plus, it provides the couple with the foundation of their plan for the rest of their lives. Estate plans are not a “one and done” event; that is why I provide a complimentary review of my client’s estate plan every three years to ensure their plan is up-to-date and covers all the life changes that may have occurred. For example, they may have had children or inherited assets since the last update.
An estate plan is the perfect wedding gift for your newlywed loved ones. Have them call me at 513-399-7526 or schedule a consultation through my website at www.davidlefton.com.