Welcome to the December edition of Vick Law, P.C.'s newsletter! This month, we delve into a crucial aspect often overlooked amidst the excitement of an impending union: Premarital Estate Planning. As the holiday season ushers in engagements and cherished moments, it’s an opportune time to explore the importance of safeguarding your future together. Our focus on premarital estate planning aims to empower couples with the necessary tools to secure their assets and ensure a harmonious future. Join us as we navigate this vital facet of legal preparedness during this season of joy and togetherness.
Building wealth is only half the job. Protecting wealth for your loved ones and yourself is equally important. Through estate planning, business planning, and asset protection, our firm will help you protect everything you love — family, friends and favorite charities. For more information, be sure to visit our website where you can explore details about our firm, gain access to our informative blog and enjoy a complimentary newsletter subscription.
From a legal and financial viewpoint, marriage is a business partnership bound by law as well as social and faith-based values. As in any partnership, having a properly prepared contract, or in the case of marriage, an estate plan, can clarify expectations, outline responsibilities, and prepare for life’s eventualities.
Power of Attorney for Healthcare may seem unnecessary when partners are young and healthy. However, unexpected events occur at any age. The right to speak with a doctor and make critical medical decisions is not conferred by marriage in most states, Married couples don’t automatically have access to each other’s medical and health insurance records. To be able to act on each other’s behalf is solved by having a POA for healthcare in place.
Similarly, couples should have a Durable Power of Attorney as part of their comprehensive estate plan. This allows each spouse to pay bills, manage bank accounts, file taxes and sign contracts on behalf of the other spouse. If one spouse becomes incapacitated, the other can step up and manage the household without delay.
Couples marrying later in life are more aware of how important these documents are. However, they are equally crucial for younger, first-time marrieds.
When Death Occurs Unexpectedly
Estate planning after becoming engaged but before the wedding is also important. Imagine being engaged to someone with no ability to be involved in their healthcare decisions, speak with their doctors, or be present at their hospital bedside, as you are not legally a family member. Even worse, what if a fiancé dies before the wedding? Without an estate plan, the surviving fiancée becomes a legal outsider and, unless relations with the future in-laws are exceptional, can be shut out of everything. This can be prevented with proper pre-marital estate planning.
Ownership of Assets During Life
Depending on the assets brought to the marriage and the laws of the state of residence, it may be helpful to place certain assets into trusts, partnerships, or other ownership structures.
Estate planning is necessary if each person comes to the marriage with their own assets and critical if there are significant differences in the nature and level of assets brought to the marriage. Trusts are used when wealth has been passed down across generations or if one spouse owns shares in a family business. Real estate, investment accounts and other assets can be easily moved into trusts with specific language addressing how assets are to be managed and distributed upon the death of the owner. The estate plan should incorporate clear directions for how assets of the estate will be distributed to the surviving spouse or others.
Distribution of Assets After Death
Most people are familiar with the function of a last will and testament to distribute property upon death. However, an estate plan performs many other functions. It should be part of every couple’s plan for their happy-ever-after lives together.
As you embrace the magic of the holiday season and begin the journey of planning your future together, remember that premarital estate planning stands as a testament to your commitment to each other's well-being. Book a call with Vick Law, P.C. today. Our experienced team at Vick Law, P.C. remains dedicated to guiding you through this essential process, ensuring that your union is fortified by legal security. May this festive season be adorned with love, warmth, and the promise of a harmonious future. Stay connected for invaluable insights and guidance to make your journey ahead a seamless and prosperous one. Happy Holidays from all of us at Vick Law, P.C.
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