Important Estate Planning Tasks for Newlyweds

 Posted on June 26, 2018 in Estate Planning

People can get uncomfortable when discussing the role finances play in how successful or fulfilling a marriage will be. However, the simple fact is that money is consistently found to be the number one cause of stress in marriages. Studies have even shown that couples arguing over finances is the top predictor of divorce. Marriage is a financial partnership as much as it is a romantic partnership. If you are tying the knot this summer or have recently wed, read on to learn the steps newlyweds should take to protect their financial future.

Update Beneficiary Designations

Getting married can be quite the challenging and chaotic undertaking. Between choosing the venue, inviting guests, hosting the reception, and finding places for all those wedding gifts, some newlywed couples forget that there are certain financial steps they should take as well. Many unmarried individuals have their parents chosen as beneficiaries on things like life insurance policies and retirement accounts. When those individuals get married, they will need to change the beneficiary to their new spouse—presuming they wish to do so, of course. If the beneficiary designation is not modified and a tragic accident occurs, the surviving spouse will not receive any of that life insurance policy's payout. After getting married, each spouse should review financial accounts such as 401ks, brokerage accounts, IRAs, and bank accounts and update beneficiary designations as needed.

Create or Update Your Will

Many young people do not have a last will and testament. When you are married or have children, it becomes even more important to draft a valid will. If you or your spouse already have a will, it will need to be updated after the marriage. A qualified estate planning attorney can help with creating or modifying a will. In addition to designating heirs and determining where your assets would go if one of you suddenly passed away, creating a will can also help facilitate conversations about financial goals and expectations for the marriage.

Arrange Health Care Directives and Powers of Attorney

A power of attorney is an individual you can assign to be in charge of making financial or health-related decisions for you if you become incapacitated through injury or illness. An advance health care directive is an estate planning tool used to make medical decisions in the event a person is incapacitated. When drafting these documents, couples must decide who should act as a power of attorney in the event that they are both incapacitated. It is also a good idea for couples to discuss health care wishes and goals during this time.

If you need support with creating a will, designating a power of attorney, or with any other estate planning process, contact A. Traub & Associates. Our experienced Lombard estate planning lawyers have the knowledge and skills to help sort out even the most complicated financial scenario. Call 630-426-0196 today to schedule a confidential consultation.

Sources:

https://money.usnews.com/money/personal-finance/family-finance/articles/2018-02-02/how-to-manage-money-and-marriage-the-right-way

http://time.com/money/4776640/money-tips-married-couples/