Now is the perfect time to start working on an estate plan. As newlyweds, you are likely in the process of deciding which of your accounts and property (your assets) to combine and how to turn two households into one. You may also be setting up new bank accounts and creating a plan for paying shared bills and other expenses.
You can use that time, energy, and work to leapfrog into planning for your future so that you will be prepared for the next stages of your new life together.
Why Think About Estate Planning at This Point?
Even if you do not have a great deal of money or own many valuables, you may have more than you think. Regardless of what you currently own, putting together a will or a trust can be straightforward at this point since you are likely very aware of what you own and how you own it.
A comprehensive estate plan can give you the peace of mind that comes from knowing that your loved ones are taken care of if anything happens to you. If avoiding probate and having control over who receives your assets is important to you, the right estate planning tools can make this wish come true.
Although you have just embarked on a new chapter in your life and more changes may be coming, creating an estate plan now is still important. Once you have an initial plan in place, you can easily update it as your circumstances and needs change.
Who Can Make Decisions for Me If I Cannot?
A financial power of attorney is a legal tool that allows you to designate an agent (often a spouse) to make financial decisions on your behalf. You can give your agent the power to pay your bills, sign contracts on your behalf, manage insurance policies, file lawsuits on your behalf, and more. Depending on the document’s exact language, you can grant your agent broad powers to do almost anything you could do. Or perhaps you would give an agent more limited powers for a specific issue, situation, or time period. In Illinois, you are able to designate when your agent is allowed to act on your behalf; they may be allowed to act immediately when you sign the document, even if you are well and able to manage your affairs, or they may have to wait until it is determined that you can no longer manage your own affairs.
A medical or health care power of attorney is similar to a financial power of attorney in that it gives an agent the legal authority to make medical decisions on your behalf when you cannot make them yourself. A health care power of attorney is important if you are unable to make decisions on your own or communicate your wishes, such as in an emergency or because of illness. You can grant the agent immediate authority to access health records and make medical decisions on your behalf, if desired. You may choose to name your new spouse as an agent under either or both powers of attorney. If you fail to create or update a comprehensive estate plan, your new spouse will have no legal authority to act for you on medical matters without two doctors certifying that you cannot make decisions for yourself - a process that most people want to avoid.
What Kind of Care Would I Want?
An advance directive (also known as a living will) is a tool that defines your wishes regarding end-of-life care if you are unable to make those decisions for yourself. Think of this document as an emotional insurance policy: You make decisions now so the people you love will not have to in the future when they are already under a great deal of emotional stress.
Who Will Look After the Kids?
If you do not yet have kids but want them someday, realize that an estate plan is essential for families with children. The number one concern for most new parents is who will raise their children if they are unable to do so. Make sure you have that important conversation regarding guardian(s) for your children. You do not want a court to decide, as the court’s ultimate choice may not be the person you would have chosen yourself.
As you start your new life together, one of the best ways to begin is by planning for the future, whatever it may bring. We help families of all ages and kinds and would be delighted to help you.