Newlyweds should do estate planning before and after they walk down the aisle.
Weddings are a time of celebration.
They mark the joining of two families through a covenant of love.
These celebration often involve months of planning and preparations.
According to a recent AZ Big Media article titled “5 estate planning tips for newlyweds,” couples should focus on more than just flowers, cakes, and seating arrangements.
As couples move down the aisle and past their honeymoon, they should develop an estate plan.
What might this include?
Create a prenuptial agreement.
A prenuptial agreement is made prior to a marriage.
Although many people assume these are only for couples where “gold digging) is likely (or suspected), they can be helpful for the average couple as well.
With this document, you can outline how assets will be treated during the marriage.
Couples marrying after establishing careers or families can find a prenuptial agreement helpful.
The agreement can protect earnings and significant assets in the event of death or divorce.
Review your estate plan.
Newlyweds who already had estate plans prior to their marriage, will need to review their documents.
The old ones will be insufficient as soon as the couple says “I do.”
Update your beneficiary designations.
Prior to your new spouse, you may have had a sibling or an ex-spouse listed as your beneficiary on accounts and policies.
Now, you may want to ensure your new spouse can inherit your IRAs, life insurance policies, and pay on death accounts.
Consider real estate.
If both newlyweds owned their own homes, they will need to decide on a place of residence.
Often, they will select one of these houses to call home.
This information and decision should be included in the prenup.
Your estate plan should also include who will inherit the home and, if the surviving spouse will not inherit the home, alone how long the survivor may remain in the home and any conditions to such occupancy.
Newlyweds can no longer think only of themselves.
Consider securing a life insurance policy to provide for your widow or widower should you die.
A sit down with your life insurance professional is a must.
Not all newlyweds require the same plans.
It is important to work with an experienced estate planning attorney to create a plan to meet your needs.
Reference: AZ Big Media (March 23, 2022) “5 estate planning tips for newlyweds”