Are you recently married? Now is the perfect time to start working on an estate plan. As newlyweds, you are likely in the process of deciding which of your accounts and 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 can use that time, energy, and work to also plan for your future so that you will be prepared for the next stages of your new life together.
Why Think About Estate Planning at This Point?
Even if you do not have a great deal of 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 at this point since you are likely very aware of what you own and how you own it.
If you do not do your own planning, state law may direct what happens to your assets if you pass away. State laws of intestate succession direct what happens when you die without a will or trust. These laws vary by state and sometimes have unexpected results. If your assets must pass through these state laws, probate will be necessary, taking months or even years to resolve. A comprehensive estate plan can give you the peace of mind that comes from knowing that your loved ones are taken care of if anything happens to you. If avoiding probate and having control over who receives your assets is important to you, the right 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 in place, you can easily update it as your circumstances and needs change.
Who Can Make Decisions for Me If I Cannot?
In addition to planning about what happens to the things you own after you die, you should also plan about the possibility of your incapacity due to accident or illness. 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 on your behalf, manage insurance policies, file lawsuits on your behalf, and more. Depending on the document’s exact language, you can grant your agent broad powers to be able to do almost anything you could do or more limited powers for a specific issue, situation, or time 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 own affairs.
A healthcare power of attorney (sometimes referred to as a designation of health care surrogate or patient advocate designation) is similar to a financial power of attorney in that it gives an agent the legal authority to make decisions when you cannot act for yourself, but in this case it is authority to make medical decisions on your behalf when you cannot make them yourself. In Michigan, as in many states, a healthcare power of attorney takes effect only if you are unable to 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 choose to name your new spouse as an agent under either or both powers of attorney. If you fail to create or update a comprehensive estate plan, 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?
You can share your wishes regarding end-of-life care in your healthcare power of attorney or in a separate document. 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. Be careful to follow state law when sharing these decisions. Some states do not recognize a separate document such as an advance directive 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 primary concern for most new parents is who will raise their children if they are unable to. 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 allowed by the laws of your state) to designate their guardian choices. In the absence of your designating your choice, the court will appoint a guardian based on the priority set in state law and based 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 yourself.
Let Us Help
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. Schedule time with us and let us help you plan to protect your new family.
