Estate planning is crucial for couples to protect their assets, ensure their wishes are followed, and provide for their loved ones in the event of death or incapacity. It helps circumvent the lengthy and costly probate process, minimizes taxes, and codifies important decisions about healthcare and guardianship for minor children. “Organizing your affairs in preparation for the end of your life is an important task, and estate planning is an ongoing process that includes much more than writing a will,” said Jim Bowman, Senior Vice President and Financial Advisor with Janney Montgomery Scott LLC. “This helps determine who can make decisions on your behalf, who takes care of your dependents, and helps avoid unnecessary waiting periods.”
Bowman noted that simple estates can be settled via online services for around $300. “If you have more complex needs, you may want to contact a law firm specializing in estate administration and planning. Many attorneys offer free consultations to help you find the best fit.” Harlan Louis of Bailey Cavalieri advises using a lawyer. “An estate planning attorney helps avoid costly mistakes,” he said. “DIY estate planning can lead to errors, such as outdated beneficiaries or missing assets, which may cause legal disputes. Having a lawyer helps navigate complex laws, which vary by state and can be intricate. Attorneys ensure compliance and help minimize taxes.”
Retaining documents, maintaining a current inventory of assets, including everything of value that you own, and designating beneficiaries are imperative. “Make sure that you have wills, trusts, power of attorney, and living wills in place,” said Bowman. “Your will and life insurance policies are the primary ways to plan for the needs of your surviving spouse and make guardianship designations for children and other dependents, he said. “A well-structured estate plan prevents misunderstandings and disputes.”
Designating beneficiaries should start with naming beneficiaries on bank accounts, retirement accounts, and life insurance policies. “Make sure the names match to avoid any confusion, Bellows said. “According to the National Institute on Ageing, you should also choose backup beneficiaries for your assets if a person is unavailable or dies before your estate distribution.”
Louis emphasized an asset distribution strategy. “Clearly defining which assets will be distributed and how they will be divided among beneficiaries is crucial,” he said. “Consider how relationships with children, stepchildren, or other relatives might influence estate planning decisions. Choosing the right person to manage the estate ensures that wishes are carried out smoothly. The same is true for powers of attorney and guardianship for minor children.” Another important consideration for couples is joint versus separate estate planning. “It is important for the advisors to know how properties are titled so that transfers can be handled appropriately,” Harlan said. “The benefit of joint planning is that nothing falls through the cracks, and that everyone is on the same page. But plan separately if the partners have different interests or goals. We see that often in a second marriage or where there are kids from a prior relationship.”
“Regardless of your wealth, everyone benefits from estate planning,” said Bowman. “Failing to plan can lead to lengthy court processes and high probate fees, which affect small estates to a greater degree than large ones. Planning allows your loved ones to keep as much of your estate as possible.” Estate planning is the best way to ensure your assets and personal wishes are taken care of after your death. It can be difficult to talk about with a spouse; however, it is important to take the necessary steps to protect your loved ones.
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