Why An Estate Plan is Important for Married Couples Too
Author: |June 2, 2014
Why An Estate Plan is Important for Married Couples Too
Far too many married couples fail to make an estate plan because they imagine that the surviving spouse can deal with passing on their shared possessions.
In reality, proper estate planning should begin long before either spouse passes away, if you hope to minimize your tax liability and accomplish your financial and non-financial goals. We’ve included the most common reasons that married couples create an estate plan.
Minimizing tax liability
If your net worth is higher than the estate tax exemption for the U.S. or for your state, it is important to think about minimizing your tax liability. Often, married couples are able to pay little-to-no taxes on their estates with proper planning, which maximizes the amount of assets that can be passed on to loved ones.
Providing for children
If you have children who are too young to take care of themselves, it is crucial that you and your spouse discuss what should happen to them in the event that both of you meet an untimely end. Part of making an estate plan is putting in writing who will ensure that your children and other dependents are provided for.
Privacy
With no estate plan, the court will appoint an administrator to oversee your estate. This administrator is generally required to post bond and ask permission of the court in order to act on behalf of the estate. This means that anything that you wished to keep private may end up before a court in the event that you die without a will.
Many married couples assume that an estate plan isn’t relevant to them, or that a written will is enough. Shifting laws, assets and family relationships, however, can mean that it is difficult for an amateur to write a will in such a way that the writer’s wishes will be honored. Talking to an estate planner is the best way to ensure that everything will continue running smoothly after you’re gone.
Why An Estate Plan is Important for Married Couples Too
Author:
Far too many married couples fail to make an estate plan because they imagine that the surviving spouse can deal with passing on their shared possessions.
In reality, proper estate planning should begin long before either spouse passes away, if you hope to minimize your tax liability and accomplish your financial and non-financial goals. We’ve included the most common reasons that married couples create an estate plan.
Minimizing tax liability
If your net worth is higher than the estate tax exemption for the U.S. or for your state, it is important to think about minimizing your tax liability. Often, married couples are able to pay little-to-no taxes on their estates with proper planning, which maximizes the amount of assets that can be passed on to loved ones.
Providing for children
If you have children who are too young to take care of themselves, it is crucial that you and your spouse discuss what should happen to them in the event that both of you meet an untimely end. Part of making an estate plan is putting in writing who will ensure that your children and other dependents are provided for.
Privacy
With no estate plan, the court will appoint an administrator to oversee your estate. This administrator is generally required to post bond and ask permission of the court in order to act on behalf of the estate. This means that anything that you wished to keep private may end up before a court in the event that you die without a will.
Many married couples assume that an estate plan isn’t relevant to them, or that a written will is enough. Shifting laws, assets and family relationships, however, can mean that it is difficult for an amateur to write a will in such a way that the writer’s wishes will be honored. Talking to an estate planner is the best way to ensure that everything will continue running smoothly after you’re gone.
