5 Life Saving Facts About Estate Planning That Every Married Couples Must Know

By Author: Smith Clea
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What if I told you that there are some common estate planning mistakes that almost every married couple makes? Would you want to know more? Well, let’s find out together!

Below are five estate planning mistakes that happen in most marriages, and what you can do to avoid them...

The Top 5 Components of Estate Planning

There are 5 components of estate planning that all married couples should be aware of:

1. Last Will and Testament
2. Powers of Attorney
3. Durable Power of Attorney
4. Trusts
5. Medicaid Asset Protection

When you know how these components fit together, your chances of leaving a lasting legacy increase tenfold! Let’s take a closer look at each component.

Last Will & Testament

A last will and testament, also known as the last will, is a legal document that lets you state your wishes for what happens to your possessions after you die.

For married couples, it can be an invaluable document—especially if both spouses are joint owners of the property and other assets.

The last will and testament enable ...
... you to ensure who gets what after passing away.

Powers Of Attorney

A power of attorney is a legal document that gives the right to another person to make decisions on your behalf in financial and legal matters.

If you become incapacitated, for example, someone who has a power of attorney can access your accounts and handle your bills and taxes—and other decisions as well.

A married couple may want two powers of attorney: one for each spouse.

Durable Power of Attorney

A power of attorney is a legal instrument that allows you to appoint someone else to make decisions on your behalf in case you can’t do so for yourself.

If, for example, you were to lose your mental capacity and need a guardian appointed by the court, an adult with power of attorney could take over decision-making for you.

At its most basic level, power of attorney simply gives one person control over another’s affairs if needed.

Trusts

A trust is a legal arrangement in which assets are managed by one person (known as a trustee) for another (the beneficiary).

Trust is of two types. Revocable or irrevocable.

A revocable trust gives control over the assets or property to multiple trustees.

Irrevocable trusts grant authority over assets to one trustee who cannot change it.

Trusts are governed by state law, and you may want to consult with an attorney if you’re considering a trust as part of your estate plan.

Medicaid Asset Protection

For many, Medicaid is one of their only options for paying for long-term care.

However, if you have substantial assets (over $15,000 in some states), you may need to apply for Medicaid through a process called spend down.

The main goal of asset protection is to maintain your eligibility for Medicaid and protect your spouse’s inheritance.

Find out more on Estate Planning For Married Couples

Clea Smith is a USA-based author on Legal issues related to estate planning, will & trust, business law, and elder law. Clea Smith does her best writing on these topics that help users to find the best solutions to their FAQ on estate planning, probate, living trust vs will and more about legal family issues. Author Clea Smith can be reached through rochesterlawcenter.com