Estate planning is rarely the top priority for a newly married couple. However, since Washington is a community property state, making early estate planning decisions is a smart way to protect your spouse and ensure your combined assets are handled according to your wishes.
Why does estate planning matter?
Washington is a community property state, meaning many assets and debts acquired during marriage might be considered jointly owned by both spouses, subject to certain exceptions. But when it comes to separate property owned before marriage, who would make decisions if one of you faces an unexpected critical emergency? Here are five essential tips that could help you understand estate planning:
- Draft a will or a trust: A will allows you to clearly state who would inherit the separate property and to appoint an executor to manage your estate after your death. A trust might help streamline the transfer and management of assets after death and, in some cases, help avoid or lessen the complications of probate.
- Update beneficiary designations: Update the name of the spouse as the primary beneficiary in your paperwork. For bank accounts, request a pay-on-death (POD) designation so your spouse can access those funds without court approval.
- Establish a power of attorney (POA): Appoint your spouse as your agent in a durable financial power of attorney. This gives them the authority to manage finances and run the household smoothly if you are unable to do so.
- Execute a medical POA: A durable power of attorney for healthcare designates your spouse as your healthcare agent. It gives them the authority to make critical medical decisions for you if you are unable to communicate.
- Review and align your asset titling: Review how major assets are titled and discuss whether ownership arrangements that include survivorship rights align with your estate planning goals.
Make sure to account for your digital lives alongside physical assets while doing estate planning. Create a secure list of your important online accounts, digital assets and access information to help your spouse manage the situation smoothly in an emergency.
Planning for the future together
Estate planning is not only about assets, but it’s also about protection and peace of mind. By taking these steps early with the guidance of a Washington estate planning legal professional, you could protect the future of your spouse and the legal foundation of your marriage.