Now is the perfect time to start working on an estate plan, as you’ve figured out how to consolidate two households into one. You’ve probably also been figuring out the shared responsibility of bills and taxes, and creating new banking relationships.
Use all that time and energy and work as a leapfrog into planning for your future—so you’ll be that much more prepared for the house, the kids, and the next stages of your new life together.
Why Think About Estate Planning At This Point?
Even if you have few assets, you have more than you think. Putting together a will or a trust probably is very straightforward at this point, since you’ve just done an accounting of your collective assets.
You may have heard of state laws that give your property to a spouse if you don’t have a will. These laws—known as intestacy laws—vary by state and can sometimes have results you wouldn’t expect. And intestacy requires your estate to go to probate—a court proceeding that can take months, even years, to resolve. So a basic estate plan should give you some peace of mind, knowing loved ones are taken care of if anything should happen.
You can even plan for property you don’t yet own (including a house you may buy in the future), and provide for children whenever they arrive on the scene. And once you have that initial plan in place, you can easily update it as your circumstances and needs change.
Furthermore, if you already have a sizable amount of assets, then estate planning may lead to tax benefits, now and in the future.
Who Can Make Decisions For Me, If I Can’t?
In the U.S., a power of attorney (POA) is a legal document that designates someone else (often a spouse) to make financial and other decisions on your behalf. In the financial realm, a POA can sign contracts, file lawsuits on your behalf, and more. Depending on the exact language, you can grant the POA broad powers or something more limited to an issue or situation.
Another important legal document, called a health care proxy in Massachusetts, allows you to name someone to make medical and health decisions for you if you are unable to make decisions on your own—such as an emergency or illness. Having both documents in place will prevent your family from having to petition the Probate Court for a guardianship or conservatorship.
What Kind of Care Would I Want?
An advanced directive (also known as a living will) is a document that makes clear the kinds of medical interventions you’d prefer if you’re unable to make decisions for yourself. In some ways, think of this as an emotional insurance policy: You make decisions now, so the people you love won’t have to. This can also make it easier for your spouse to make decisions if necessary, as long as you name him/her as your health care proxy.
Who Will Look After The Kids?
If you don’t yet have kids but want them someday, realize that an estate plan is essential for families with children. The state statute providing assets for a spouse will probably also include some inheritance for children. However, when it comes to guardianship, you need a will to designate caregivers for the children, should something happen to both parents. Without a will, the court decides on the children’s caregiver, and the court may select someone you don’t want.
As you start your new life together, one of the best ways to begin is by planning for the future and whatever it may bring. Contact Attorney Michael Gove at mgove@govelawoffice.com, or Attorney Amanda Carpe at acarpe@govelawoffice.com to learn more.