Newly married couples are on an exciting journey towards a lifetime together. While discussing end-of-life matters might not be the most romantic in your honeymoon phase, it is a crucial step to building a secure future together.
No one knows what the future holds. Estate planning effectively protects your assets and ensures that your loved ones are cared for when you pass. Here are five essential tips for newlyweds regarding estate planning.
Taking stock of your assets
You can begin your estate planning by taking inventory of your assets, such as bank accounts, real estate, investment and other valuable properties. Aside from your personal possessions, you can also discuss communal assets, including joint accounts and insurance. Additionally, it might be a suitable time to update beneficiary designations on your accounts, such as life and health insurance policies, investment accounts, retirement accounts and government benefits.
Drafting or updating your wills
A will is a legal document outlining how you wish to distribute your assets to your loved ones after you pass. It also designates the executor who will ensure that your will is honored and followed. If you already have a will, it is better to update it and account for your new family members.
Identifying a health care proxy
Having a health care proxy would be helpful when you become incapacitated due to illness or disability. Following your living will, your assigned proxy will make health-related decisions on your behalf, especially in emergencies. A living will allows you to decide on your preferred personal care and medical interventions, including surgeries, treatment, resuscitation and organ donation. While spouses are often each other’s healthcare proxy, you can also designate an alternate in case you and your spouse get into an accident together.
Designating a power of attorney
You can designate a power of attorney to manage your financial affairs when you are unable to do so yourself due to illness or incapacity. This trusted individual would be responsible for paying your bills, managing investments and properties and making other important financial decisions.
Deciding on your children’s guardianship
Appointing a guardian is essential if you have a minor child or are planning to have one in the future. It is crucial to discuss arrangements with your spouse if both of you would not be there to care for your child anymore.
It is essential to know that estate plans are not just for distributing your assets, but also for protecting your loved ones. You can update your estate plan regularly or whenever there are significant changes in your life. An experienced estate planning attorney could guide you in crafting and updating an estate plan that meets your needs and goals.