Estate Planning for Married Couples

If you are married, you may think that you do not need estate planning because when you die, everything will go to your spouse. There are a few problems with this thought process. One, it is not necessarily true. And two, estate planning is about much more than just what happens after you die. Estate planning for married couples is very important, especially if you have minor children.

Estate Planning Truth #1: Your Spouse is Not Automatically Entitled to Your Estate

First, it is not certain that if you die, everything will go to your spouse. For example, if you own property with another person, that may or may not be accessible to your spouse. It depends on how the property is titled. Another example is if you have financial assets (such as bank accounts, retirement accounts, and life insurance) that do not have proper beneficiary designations, your creditors may wind up getting access to that money instead of your spouse.

Also, if you have minor children by someone other than your spouse, your situation is more complex. Your minor children may be entitled to certain things, which may preclude your spouse’s access to them (including your homestead property!).

An estate planning attorney will be able to help guide you in making sure your spouse is taken care of upon your death. While the most common way to outline how your property and assets will be distributed after death is through a will or trust, a local attorney will be able to discuss with you the best course of action.

Estate Planning Truth #2: Estate Planning is About More than Your “Stuff”

A properly drafted estate plan covers more than just what happens to your assets after you die. It also covers what happens in the event you become incapacitated or are unable to make your own health care decisions. It can also include burial instructions.

Your estate plan, in addition to a will and/or trust, should also include important documents like a power of attorney, health care surrogate, and living will. These documents explain who you wish to be responsible for making decisions and taking action on your behalf.

Power of Attorney

A durable power of attorney allows you to appoint an agent to act on your behalf in certain financial transactions. You can allow your agent to invest on your behalf, purchase property on your behalf, handle your bank accounts on your behalf, and more. You can appoint a limited or more general power of attorney, depending on your level of trust with your agent. A power of attorney can be a critical document to allow someone else to continue paying your bills, should you become incapacitated.

Health Care Surrogate

A health care surrogate is someone you appoint to make health-related decisions on your behalf. This should be someone you trust to make a decision in line with what you would decide, if you were able. Therefore, it is important to tell this person ahead of time about their appointment and discuss your wishes with them.

Estate Planning Truth #3: You Need to Plan for Your Minor Children

If you have a minor child (or minor children), you and your spouse will need to appoint someone to be their guardian. If you do not set this up in your will, a judge will decide who will care for your children. That’s right, a judge who has never met you and doesn’t understand your family dynamics will be making the decision as to who should care for your children.

You and your spouse will want to discuss this in detail and then approach your chosen guardian to ensure they are up for the job.

I Need Help!

If you realize that having an estate plan is more than just “my spouse will get everything when I die,” take action today! Contact a local attorney to discuss your options and get your estate plan set up correctly. As you can see, there is more to it than meets the eye and you want to make sure your unique situation is understood and properly