Important estate planning considerations for newlyweds
August is one of the most popular months of the year for people to get married. As August begins next week, we find it prudent to write a post about the benefits of estate planning for newlyweds. Of course, we believe that conversations about this topic are important because in the next month you will be consumed with last minute wedding planning issues, going on a honeymoon and trying to return to normal life afterwards.
In all of this, it is easy to lose sight of the basic estate planning tasks you can perform as you tie the knot. This post will identify a few things that newlyweds should keep on their to-do list.
Inform human resources – Workplace insurance policies and requirement plans require holders to update their beneficiary designations. For those who are newly married, this means including their new spouse to their policies. This is especially important for those who previously had their parents, or another friend as their beneficiary.
Consider life insurance – In the same vein, it may be time to consider life insurance. Workplace insurance policies can be very limiting, and they are not good investment vehicles. Whole life insurance policies, on the other hand, could help in providing for the future.
Execute durable powers of attorney and health care directives – Being married, by itself, doesn’t automatically give a spouse the right to make decisions on behalf of an incapacitated spouse. To protect this right, it is prudent to have your new spouse execute a power of attorney for financial and decisions, and a healthcare directive for medical decisions.