Estate Planning Tips For Newlyweds
At Phelps LaClair, we love the springtime. It’s a perfect time for looking ahead in anticipation of new life and new challenges. Spring is the time when a young man’s fancy turns to . . . well, you know. When birds are building nests and bees are pollinating the tulips and daffodils, young couples are preparing for June—and the wedding season. So in the spirit of the season, we want to offer 5 estate planning tips for newlyweds, because it’s never too soon to plan for the future.
Now that you have committed to each other for the rest of your lives, you need to consider what could happen should one of you become seriously ill, incapacitated or deceased. There are financial realities that young couples have to face: student loans, home ownership with a mortgage, new careers, and potentially starting a family. Though it’s not something you want to think about, it’s wise to make sure there is no financial burden in case “till death do us part” happens sooner than expected. Insurance cannot mend a broken heart, but it can bring peace of mind knowing that loved ones will be taken care of.
Wills, Trusts and LLCs
There are many ways to write a will or design a trust, and Phelps LaClair has been doing this for decades. We know what works and what doesn’t work to protect your assets and your wishes for passing on an inheritance. There are protections and tax advantages in Living Trusts and LLCs that young couples can use to put their financial goals in motion and work toward a secure future. There are Living Wills that give directives, should you become unable to make life decisions for yourself. Come see us, and together, we will design an estate plan for you.
Powers of Attorney
At its very basic level, by designating a power of attorney, you name someone to act on your behalf if you are unable to do so. Financial and Medical powers of attorney are often overlooked by newlyweds, but they are essential elements of a solid estate plan. Usually, a husband and wife will designate each other as a power of attorney, but it also becomes necessary to designate someone who can act on your behalf if an emergency arises when you are travelling or residing in a foreign country.
This is easy to overlook, but it is very important to make sure your beneficiaries are kept up to date. You are married now; do you still want your parents or siblings to receive your estate? Accounts that need to be updated include bank and investments accounts, IRAs, 401Ks, and any insurances that you hold. Because beneficiary designations take precedence over wills, this is extremely important to do as soon as possible.
If either or both of you own real property such as homes, you may want to write a new deed giving joint ownership with the right of survivorship. There are also other ways to accomplish the same end, such as LLCs and Living Trusts. Ask us and we can help you find the best path forward.
Spring is all about new beginnings, and as newlyweds, you know better than most the hopes and dreams we all have for the future. Phelps LaClair is here to help you protect those dreams with the support of sound estate planning. As these 5 estate planning tips for newlyweds show, there is more than meets the eye. But call us so we can work together to secure for you a good foundation for the life you are building. The future begins right now!
Images used under creative commons license (Commerical Use) 03/20/19 Photo by Brodie Vissers from Burst