Marriage is a significant life event that necessitates changes to legal documents. This helps to better ensure that your estate reflects your current marital status and your new family dynamics. If this is not reason enough to update an estate plan, three additional reasons include:
- Reflect your current wishes: Marriage might change your perspective on the distribution of assets.
- Protect your spouse: An estate plan tailored to your wishes can provide for your spouse in the event of in your absence. It can also make sure all documentation is in place, so they have the legal powers needed to manage the estate.
- Prepare for the future: An estate plan does more than just take care of the legal documents needed to transfer wealth after your demise, it also leads to important conversations about wealth management. The early stage of married life is an excellent time to have these conversations and discuss investment strategies and wealth management goals for your future life together.
Reviewing and updating your estate plan is an opportunity to find a common goal with investment strategies and give both you and your spouse peace of mind knowing that you are prepared for the future.
What documents do we need for an effective estate plan?
After getting married, it is wise to review and revise several estate planning documents. Arguably the most well-known, the will, is an important part of this plan. Make sure the document includes your spouse as a beneficiary. Decide if you want to leave your entire estate to your spouse or if there are specific bequests you would like to make to other family members or friends.
It is also important to review beneficiary designations on retirement accounts, life insurance policies, and other financial accounts. Other documents to include in your estate plan are powers of attorney. Establish or update durable powers of attorney for both healthcare and finances to ensure that your spouse has the authority to make decisions on your behalf if you are unable to do so.
Updating estate planning documents can play an important role when building a life together, providing not only a catalyst for important financial conversations but also leading to legal security and peace of mind. By addressing these key aspects soon after marriage, couples can ensure that their intentions are clear and legally enforced, safeguarding their shared future.