Marriage marks the beginning of a new journey, and as you merge your lives, it’s the perfect time to establish an estate plan. As newlyweds, you may be deciding which financial accounts to consolidate, organizing shared expenses, and blending your households. While these steps help set the foundation for your financial future, incorporating estate planning into your discussions ensures that you are legally and financially prepared for whatever life may bring.
Why Estate Planning Matters for Newlyweds
Even if you don’t have substantial assets right now, estate planning is still important. Many people assume that if they pass away without a will, their spouse will automatically inherit everything. However, this is not always the case. Each state has intestacy laws that determine how assets are distributed when someone dies without a will, and these laws can lead to unexpected or undesirable outcomes.
Additionally, assets distributed under intestacy laws must go through probate, a court process that can take months or even years. Establishing an estate plan ensures that your assets go to the right people while potentially avoiding probate. By taking action now, you gain peace of mind knowing that your spouse and loved ones will be protected. Plus, an estate plan can be easily updated as your circumstances change, such as purchasing a home, having children, or growing your wealth.
Who Will Manage Your Affairs If You Become Incapacitated?
Life is unpredictable, and in the event of an accident or illness, someone may need to make financial or medical decisions on your behalf. Without proper legal documentation, your spouse may not have the authority to act for you, potentially leading to expensive and time-consuming court proceedings.
Financial Power of Attorney
A financial power of attorney allows you to appoint a trusted individual—often your spouse—to handle financial matters on your behalf. This can include paying bills, managing investments, handling real estate transactions, or making business decisions. Depending on the terms of the document, this authority can be immediate or only take effect if you become incapacitated. Some states require specific language for delayed authority, so it’s important to structure this document properly under applicable laws.
Medical Power of Attorney
A medical power of attorney (also called a healthcare proxy or healthcare surrogate designation) grants a chosen representative the legal authority to make healthcare decisions for you if you become unable to do so. Unlike a financial power of attorney, this document typically only becomes effective in the event of incapacitation. In some states, you can also authorize your agent to access medical records immediately. Without this designation, your spouse may have no legal standing to make medical decisions for you without court intervention.
Your Preferences for Medical Care
In addition to appointing a medical decision-maker, you may want to specify your wishes regarding life-sustaining treatment. This can be accomplished with an advance directive (or living will), which outlines the type of medical care you do or do not want if you are unable to communicate your preferences.
An advance directive helps ease the burden on loved ones by ensuring they don’t have to make difficult healthcare choices under emotional distress. However, state laws vary on whether advance directives are legally binding, so it’s crucial to consult with an estate planning attorney to ensure your document is enforceable.
Planning for Your Future Family
Even if you don’t have children yet, estate planning is essential if you intend to start a family. One of the most critical aspects of an estate plan for parents is naming a guardian for minor children.
If both parents pass away without a designated guardian, the court will appoint one based on state law and what the judge deems to be in the best interests of the child. This may not align with your wishes, which is why it’s essential to name a guardian in a will or a standalone document (if permitted by your state). By making this designation, you ensure that your children will be cared for by someone you trust.
Secure Your Future Together
Estate planning is not just for the wealthy or elderly—it’s a vital step for anyone who wants to protect their loved ones and their financial future. By creating a comprehensive estate plan now, you can ensure that your spouse has the legal authority to act on your behalf, your assets are distributed according to your wishes, and your future children are provided for.
Starting your new life together with a solid estate plan demonstrates a commitment to each other’s well-being, no matter what the future holds. We assist couples in crafting personalized estate plans that reflect their unique needs and goals. Contact our office today to get started on building a secure future together.
