3 Quick Estate Planning Tips for Married Couples

No one likes to think about it, but estate planning is one of the most loving and practical things you can do for your spouse, kids, and your future self. With these three simple estate planning tips, you can get started right away.

Many couples brush off estate planning, thinking, “That doesn’t apply to me.” The truth is that every married couple has an estate, from your physical assets to the people you want to protect.

In addition, if you are beginning to care for aging parents, these estate planning tips can also help you navigate discussions with your parents and other relatives.

Don’t wait until it’s too late. Protect yourself by having these conversations, getting your documents in order, and building up the financial intimacy in your marriage.

Disclaimer: We are NOT financial advisors, attorneys, or estate planners. Please consult with your own professionals to determine what is best for the two of you.

Estate Planning Tip #1: Ask the Big Questions

Financial conversations don’t come naturally to every couple. However, it’s essential to get on the same page about your money, goals, and wishes. Before you dive into forms and legal documents, sit down with your spouse and consider these questions:

• What’s our current approach to finances? Estate planning looks different for each couple depending on age, family structure, and situation.
• What do we have, who do we owe, and how do we access it? This includes property, retirement accounts, debts, and more. You should both know the basics, including usernames and passwords for important financial accounts.
• How are we protecting what we have? It only takes a few minutes to confirm that you have listed your beneficiaries correctly on your accounts. (If you haven’t, put that at the top of your to-do list!)

Transparency is key. Talk to your spouse about everything, even the uncomfortable details. Estate planning is about ensuring your loved ones aren’t left guessing during difficult times.

Estate Planning Tip #2: Understand Key Documents

There are a few must-have documents that everyone should consider, regardless of age or wealth. Again, please consult with your own professionals to determine what is best for the two of you. Many estate planning documents and processes vary by state.

1. Durable Power of Attorney

This document allows someone you trust to handle financial matters if you’re unable to do so. It’s valid until you revoke it, so it’s crucial to carefully choose the person who will hold this responsibility. This one document can save your family an enormous amount of time and money should you become incapacitated.

2. Advance Healthcare Directive

This document specifically outlines your medical and personal care preferences if you’re unable to communicate them. Choosing a trustworthy and reliable person to carry out your wishes is essential.

(Tip: Your kids can also create their own Advance Healthcare Directive and Durable Power of Attorney once they turn 18. As a parent, you no longer have legal authority to make financial or medical decisions for your adult children, even if something happens to them. So have these conversations with your kids, too!)

3. Will or Trust

Whether you should create a will or trust will depend on the size of your estate and your current family situation.

A will specifies who manages your estate and where your assets go after you pass. On the other hand, a trust can help you avoid probate court and ensure privacy and protection for your assets. If you have kids, it is also imperative to nominate a guardian to care for your children if both you and your spouse pass away.

Estate Planning Tip #3: Don’t Wait! Do One Thing Today

Once you’ve discussed and identified your needs, it’s time to take concrete steps:

• Create the necessary documents. Consult an attorney for guidance. Many law firms offer free or paid consultations to get you started.
• Update your documents regularly. If you’ve had a recent life change, such as a move or the birth of a child, it’s time for an update.
• Communicate with loved ones. It can be as simple as saying, “I’ve included you in my estate plan. Here’s my attorney’s information in case of an emergency.”

Protect Your Financial Intimacy

Estate planning may feel overwhelming, but breaking it into these simple steps makes it manageable. Begin by having open conversations with your spouse, gathering key documents, and consulting professionals.

Remember, these estate planning tips aren’t just about money. This is about protecting your spouse, your financial intimacy, and your family by planning ahead.