Most consider estate planning for those approaching retirement age or older. However, young couples should contemplate doing an estate plan for different as well as many of the same reasons as their older counterparts. Only about a third of Florida resident as well as Americans with young children have a Last Will & Testament let alone other estate planning documents. To benefit from estate planning as a young couple, it is important to know what an estate plan can do.
Many newly married couples put off estate planning for assorted reasons. Those reasons may include being too young, being healthy, unable to afford it or because they have no children at the time. For some, it may even be depressing to imagine the possibility of dying or becoming incapacitated at such a youthful age. Even healthy young adults can be stricken by serious illness or accident and leave their spouse behind. Estate planning for young married couples at an early stage of their lives for the possibilities that may occur in the future is essentially the responsible, loving, and thoughtful thing to do.
Knowledge of what estate planning can do for a person and their spouse is vital in the long run. A basic estate plan typically includes a Last Will & Testament, Financial Durable Power of Attorney, Health Care Power of Attorney, Advance Directive or Living Will and a Preneed Declaration of Guardian for Minors. In addition, one of the primary goals of any estate plan is to minimize any taxes due at the time of death. People may wonder what will happen if they die without creating a Last Will. The response is that the Florida court will appoint a Personal Representative to make decisions regarding the division of assets. After final matters are paid for such items as debts, taxes and funeral expenses, the Personal Representative will divide the subject assets according to state law which does not always take into account the deceased party’s wishes or family dynamics. This impersonal but lawful route for one’s estate is precisely what most individuals, couples, and families aim to avoid when they do their estate planning.
Further, if one is not legally married but are in an otherwise committed relationship, planning is essential because one’s partner may otherwise have no legal standing to deal with the other’s affairs or receive any of their assets after death.
If one dies without a legal Last Will, the assets are distributed according to a plan established by state law, not by the individual. If one dies with only minor children as heirs, the child’s money is placed under the protection of a legal Guardian under a legal Guardianship and would require court supervision over the management of finances.
Fortunately, estate planning for a young couple is often simple and inexpensive. A basic Last Will with a testamentary Minor’s Trust therein, including Guardian or Trustee appointments, a Living Will, Health Care Surrogate and a Power of Attorney for financial affairs can address most of the needs which might reasonably arise in the following decade or so. This advanced planning provides security for one’s spouse and children, which they may need to rely upon for years, if not the rest of their lives. A Florida resident can use these documents to appoint Personal Representatives and/or Trustees to oversee resolving one’s estate and managing financial affairs of the subject estate. Moreover, said documents remove or reduce the likelihood of family disputes about the wishes or intentions of the deceased party.
Several legal roles should be considered for inclusion in the young couple’s planning documents, which include-Agents under the various Powers of Attorney as well as Guardians, Personal Representatives and Trustees. A Guardian is the person who is responsible for the custody and care of a minor child. If a child is left orphaned, the deceased parent would want them to receive care in the best possible hands. In addition to routine care, this person will have to make medical decisions, educational choices, religious guidance, and provide the proper nurturing for the child. With proper estate planning, one can make that choice while alive, based on the factors they find important, rather than a judge, who is a stranger, making these important decisions. By putting off planning due to fear, indecision, or failure to prioritize it, one may effectively decide to place their family in a precarious position.
One’s Personal Representative (PR) also serves an important rule, though for a much shorter time. The PR is responsible to wrap up one’s estate, collecting assets, paying debts, resolving taxes, and distributing property under the Last Will. It is a paperwork-intensive process requiring good organizational skills and an ability to solve problems. Someone located in the area where one resides is often a better choice than someone far away, due to the logistics of paperwork, court appearances, attorney consultations, bank visits and similar duties. This person will be responsible to see that what the deceased party owns goes to whom it should, so it should be someone who is responsible, diligent, intelligent, and trustworthy.
Finally, an individual or family may want to set up a Trust to protect assets which will pass to young children. A Trustee oversees financial assets left for a child, investing, and distributing them according to terms one has described in a Last Will or in a Trust document. This may involve managing assets for many years as the children grow and become responsible adults, during which time the Trustee will have to make many decisions about what is in the best interests of the child and their finances and care. A Trustee should be knowledgeable of financial dealings, have effective communication skills, and be very trustworthy.
The couple may also wish to discuss having a Living Will and/or medical Power of Attorney prepared. A Health Care and Living Will can describe whom one would like to make medical decisions about their care and treatment if they are left unable to do so themselves. Moreover, a person can describe their wishes about various types of medical treatment which they do, or do not, wish to receive if they are permanently unconscious or terminally ill and unable to communicate, such as blood transfusions, feeding tubes, and more, if the condition is one from which they will never recover. This avoids the types of family tragedies which transpired in the publicized cases of Karen Quinlan, Nancy Cruzan, or Terri Schiavo. Separately, a Durable Power of Attorney can be prepared which authorizes someone to act as an Agent on their behalf to manage financial and personal matters when the Principal may be unable to act on their own.
With early estate planning, a young couple can easily and inexpensively protect their family against many of the tragic unforeseen events which can spring up. The process of planning is relatively quick and painless and may be paid for by a Legal Plan that an employer may offer as a work benefit. Once in place, this plan will continue to protect those interests in a mature and responsible manner. Later as life changes over the years, one’s estate plan can change, modify, or evolve accordingly. As one may be aware, there was a reason one’s older parents had a proper estate plan prepared, therefore, it should be time for a young parent or a young couple to do so as well!
The foregoing is a very brief and general overview of the benefits of having a properly prepared estate plan even while young in Florida.
If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.