Estate Planning Essentials For Newlyweds
According to the Centers for Disease Control and Prevention (CDC), about two million marriages occur each year in the United States. Many of these newlyweds face distinct challenges associated with married life – including estate planning. Newlyweds may need to consider the potential consequences of a death in the family, especially if they leave behind dependents and small children. What are some estate planning essentials that newlyweds should consider after getting married? Estate planning is a highly personalized process, and the most appropriate steps depend entirely on the unique circumstances of each family. A consultation with an experienced estate planning attorney in Florida could provide more personalized guidance, so consider contacting Loughlin Law, P.A. at (561) 677-8384.
Write a Will
Among all estate planning essentials, a Will is the first step for most newlyweds. Many attorneys consider Wills to be the bare minimum when it comes to estate planning, and this relatively simple document helps achieve multiple goals. First, it ensures that the testator will not die “intestate” (without a Will). When someone dies intestate, the probate process in Florida can be quite time-consuming and expensive. This could prove burdensome for families, and it is very easy to avoid with an effective Will.
A Will also provides newlyweds with more control over the inheritance process. When someone dies without a Will, Florida probate courts follow a process called “intestate succession” as it determines who inherits what. According to Chapter 732 of the Probate Code, the spouse of a decedent inherits all of the estate – assuming there are no children. If there are children, the surviving spouse receives half, with the other half passing to the children. The exact details of intestate succession can become quite complex, and it makes sense to discuss these possibilities with an experienced lawyer at Loughlin Law, P.A. Wills allows newlyweds to take control over the inheritance process and pass property to people other than their spouses or children, including parents, distant relatives, and close friends.
Consider Life Insurance
Although not everyone needs life insurance, newlyweds often consider this option after getting married. The thought of leaving a spouse with financial burdens is daunting for many newlyweds, and life insurance addresses this concern. Life insurance may be particularly attractive for newlyweds who are also new parents. Life insurance can help the surviving spouse achieve financial stability after a sudden loss in income. A life insurance policy can also help maintain existing standards of living for children. Young newlyweds may feel that death is many years away, but a fatal accident can happen at any time on the road or at the workplace.
Life insurance is typically cheaper for younger individuals, and newlyweds can secure this type of insurance for a relatively low investment each month. Wealthier couples also use life insurance as a more nuanced estate planning strategy. Life insurance policies can avoid probate, and they may also offer certain tax benefits. For newlyweds who are also newly wealthy, the benefits of life insurance might be worth discussing with an experienced Florida estate planning attorney.
Create Guardianships for Your Children
According to the National Institutes of Health (NIH), an increasing number of couples today have children before marriage. Some feel that having a child is a greater commitment compared to marriage, and the existence of children before marriage raises distinct estate planning challenges. For newlyweds with children already in tow, guardianships represent an important priority. As the name implies, a guardianship designates a legal guardian who will take care of the children if both their parents pass away. While this might seem like a distant possibility, a single car crash can have tragic consequences for both parents.
Without a guardianship in place, Florida courts will need to appoint a guardian themselves. The final decision of the court might not align with the preferences of the parents, and it makes sense to take control of this process during life. For example, newlywed parents might choose their siblings as guardians. These siblings might have children of their own, allowing the orphans to enter into a loving, familiar family environment.
Advance Directives and Powers of Attorney
Newlyweds may also want to consider advance directives and powers of attorney, and these estate planning essentials are important regardless of age or marital status. An advance directive allows an individual to make important medical decisions ahead of time. If this individual becomes incapacitated and unable to express their preferences, healthcare providers will refer to and honor the advance directive. Many people use advance directives to express preferences about life-sustaining care, organ donation, blood transfusions, and other matters.
A power of attorney provides a chosen “agent” with the power to make decisions on behalf of an incapacitated adult. These decisions may be financial or medical in nature. Often, an individual gives their spouse this decision-making power. However, individuals are also free to choose anyone else for this role. A power of attorney allows an agent to make decisions about end-of-life care, business planning, and the liquidation of certain assets to pay for medical treatment.
Estate Planning Essentials for High-Net-Worth Newlyweds
High-net-worth newlyweds may need to consider more complex estate planning options. Trusts are often effective tools for wealthier individuals, and they can help newlyweds avoid probate. They also provide certain tax benefits and more flexible control over the inheritance process. For example, a spouse might establish a spendthrift trust – ensuring that beneficiaries receive gradual distributions over time. This prevents spouses and adult children from spending trust assets irresponsibly – a major concern among the wealthy.
High-net-worth spouses might also consider business succession when approaching estate planning. Often, wealthy newlyweds have successful family businesses. A succession plan may be appropriate, and this can ensure the long-term survival of the business even after the passing of the founder/director. Without a business succession plan, the company might fall into the hands of someone who has no idea how to run the operation.
Discuss Estate Planning Essentials With Loughlin Law, P.A.
While all newlyweds face new estate planning challenges after getting married, the most suitable steps depend on the unique factors surrounding each family. High-net-worth families may need to approach estate planning essentials with greater care and consideration. Those with family businesses might need to consider succession planning. Those with less wealth might be more concerned about guardianships for their children. Whatever the case may be, online research is often only the first step when it comes to estate planning essentials. To put plans into action, it makes sense to consult with an experienced estate planning attorney in Florida. To continue this dialogue, consider contacting Loughlin Law, P.A. at (561) 677-8384.
