Getting married is one of the most exciting milestones in life. You’re starting a new chapter with your partner, and as you embark on this shared journey, it’s also an ideal time to think about your future together—especially your estate planning. While it may not be the most romantic topic, having a solid estate plan in place in Florida is crucial for ensuring your wishes are followed and your loved ones are protected. Below are five key things to think about when it comes to estate planning for newly married couples.
When you get married, your life circumstances change, and so should your beneficiary designations. This includes reviewing the beneficiaries on your retirement accounts, life insurance policies, and other assets like bank accounts or brokerage accounts. Many couples mistakenly assume that their spouse is automatically listed as the beneficiary, but that’s not always the case. For example, if you had a life insurance policy or a retirement account before your marriage, your ex-spouse might still be listed as the beneficiary.
Why It’s Important: If something happens to you, you want your spouse to inherit your assets, not someone else. Make sure your beneficiary designations align with your new life situation.
A will is one of the most basic components of an estate plan, and newly married couples should create or update theirs as soon as possible. A will allows you to determine how your assets will be distributed after your death. If you don’t have a will in place, your estate could be subject to the laws of intestate succession, meaning the state of Florida will decide who gets what. This could lead to your assets being distributed in a way you don’t intend, potentially leaving out your spouse or even creating conflicts among family members.
Why It’s Important: By creating or updating your will, you ensure that your spouse and any children you may have in the future are taken care of according to your wishes.
In addition to a will, consider appointing a power of attorney (POA) and setting up health care directives. A POA grants someone the authority to manage your finances if you’re unable to do so. A health care directive (or living will) lets your spouse or another trusted person make medical decisions on your behalf if you’re incapacitated and unable to communicate your wishes. This is especially important for newly married couples who may not yet be familiar with these legal aspects.
Why It’s Important: In the event that you’re seriously ill or injured, your spouse may not automatically have the legal authority to make decisions for you. By appointing a POA and establishing health care directives, you ensure that the person you trust most can step in to handle things when necessary.
As your assets grow, it may make sense to set up a trust. A trust allows you to place assets under the control of a trustee, who manages those assets for the benefit of your beneficiaries. There are many types of trusts, but the two most common are revocable living trusts and irrevocable trusts. A living trust can help avoid the lengthy and costly probate process, and it can help reduce estate taxes. A trust also keeps your estate private, which is important for couples who want to avoid public scrutiny after they pass away.
Why It’s Important: By placing assets into a trust, you can ensure a smoother transfer of wealth to your spouse and future generations. Plus, trusts can offer valuable tax and privacy benefits that a basic will cannot.
In today’s digital age, many people have a variety of digital assets, such as online accounts, cryptocurrencies, and digital photos, that need to be managed after death. As a newly married couple, it’s important to think about how these assets will be handled. You may want to create a list of your digital accounts, passwords, and security questions, and make sure your spouse has access to this information if needed.
Why It’s Important: Failing to plan for your digital assets can leave your spouse or loved ones in a difficult situation, especially if important financial accounts or sentimental files are inaccessible.
Estate planning is a critical aspect of building a secure future together as a married couple. By addressing these five key areas—beneficiary designations, your will, powers of attorney and health care directives, a trust, and digital assets—you ensure that both you and your spouse are protected, and that your wishes are honored in the future.
While estate planning may not be the most exciting conversation to have, it’s one of the most loving things you can do for your new partner. With a solid plan in place, you can focus on building your life together, knowing that both of your futures are secure.
Ready to plan? Give us a call today to set up a complimentary initial call.
