Marriage is an exciting time that brings joy and companionship; however, it also necessitates facing practical matters many newlyweds often tend to avoid. Many couples postpone heavy discussions regarding their financial situations and estate planning. This delay may stem from a variety of reasons, including believing they are too young, concerns of the costs, or feelings of being overwhelmed by new responsibilities. Nevertheless, understanding the vast benefits and security that estate planning offers for new couples is key to establishing a strong foundation together.
Early planning helps ensure that your assets, regardless of their size, are protected and will be distributed according to your wishes, rather than leaving decisions to the state regarding the distribution of your property.
People often speculate as to what happens to their property and assets if they pass away without an estate plan. In Florida, if a person dies intestate, or without a will, the Florida Intestacy Statutes will govern how assets are distributed after death. Once taxes, debts, and other expenses are paid, a court-appointed administrator divides remaining assets in accordance with Florida law. This route may disregard your personal wishes and can lead to strained relationships or legal battles between family members. An estate plan allows individuals to avoid these issues and also avoid probate, which can be an expensive and drawn-out process. This is exactly why it is crucial to have an estate plan in place, even at an early age.
An estate plan may include a last will and testament, durable power of attorney, designation of health care surrogate, and a living will. Additionally, a revocable living trust is another extremely beneficial instrument in estate planning.
Revocable Living Trust
Revocable living trusts offer a great way to safeguard assets and create lasting family wealth by enabling the direct transfer of assets to your selected beneficiaries. One of the primary advantages of a trust is that it avoids the probate process after the grantor’s death, which saves both time and potentially substantial legal expenses. Furthermore, unlike a will, a trust maintains privacy. This ensures that your inheritance decisions and asset details do not become public record, which occurs during the probate process when a will is used, providing a confidential method for distributing assets and ensuring your legacy is passed on as intended.
Last Will and Testament
In addition to a Revocable Living Trust, a Last Will and Testament forms the cornerstone of estate planning, especially for newlyweds. A will is a statement of your wishes for asset distribution after death. For parents or prospective parents, a will can be crucial for designating guardians should both parents pass. Without this legal safeguard, courts will determine who raises your children, and this responsibility could potentially land with someone you would not have selected. By creating a will, you ensure that trusted individuals will care for your children according to your preferences in the event something unplanned occurs.
Why Both You and Your Spouse Need a Durable Power of Attorney and Healthcare Directives
One mistaken belief is that spouses can automatically manage each other’s financial and legal affairs, but this is not the case. If one spouse becomes incapacitated, a durable power of attorney can empower a named individual to act as their legal agent. Creating these documents helps couples avoid costly and time-consuming guardianship proceedings in emergencies. Establishing durable powers of attorney ensures that your affairs are managed according to your wishes.
Healthcare directives can also be a vital component of estate planning for newlyweds, allowing you to control healthcare decisions when you are unable to communicate them yourself. In the event a spouse needs medical attention but cannot express their wishes, a Designation of Health Care Surrogate specifies who has legal authority to make critical decisions. Spouses should designate one another to ensure that their partner can advocate for their medical preferences when necessary.
Update Your Beneficiary Designations
Beneficiary designations supersede directions made in wills and trusts, so it is essential to make regular updates as life circumstances change. Remember to update beneficiary information on retirement accounts and life insurance policies to name your spouse as beneficiary. These designations will ensure your assets transfer directly to your chosen recipient upon death, bypassing probate and providing financial support to your spouse.
Finally, if you and your new spouse have recently purchased a home or are searching for your first property, remember that it is vital to properly title your joint assets. A tenancy by the entirety form of ownership protects your shared home from creditors targeting either spouse individually, which provides important financial protection for your new family.
Early preparation for life’s many unexpected twists and turns provides newlyweds with peace of mind against those midnight anxieties. Your estate plan will consist of flexible documents that can adapt as your circumstances evolve throughout different stages in life. By establishing these safeguards now, you will reduce tax burdens, protect your spouse, bypass probate for designated assets, and ensure your children’s wellbeing, all of which are essential elements in building a solid foundation for your shared future.
Our Firm
At Rossway Swan, our skilled estate planning attorneys are here to help you create a personalized estate plan that reflects your goals, financial situation, and family needs. Whether you’re considering establishing a Trust or want to confirm that your current documents reflect your wishes, please contact our Estate, Probate, and Trusts Group for a free consultation.
Prepared by the Estate, Probate, and Trusts Group at Rossway Swan Tierney Barry & Oliver, P.L. Attorneys, Michael J. Swan, William J. Stewart, and Trevor H. Bird are pleased to meet with you to discuss your personal needs.
