Estate planning may not be the most romantic topic to talk about with your spouse, but it is one of the most crucial ones you will ever have. Marriage extends beyond love since it involves a shared life with responsibilities and safeguarding each other in all possible ways.
Marriage alone does not guarantee your spouse will handle everything after your passing because, without an estate plan, the legal system will determine these decisions instead of you. Most couples hesitate to create an estate plan because they lack direction on how to begin.
Think about it: You and your spouse probably pay taxes together, own property together, and have joint bank accounts. What would happen, though, if one of you fell very ill or was rendered incapable? Who will decide on your behalf regarding finances and health care? When you lack appropriate legal documents, your spouse will encounter legal challenges during their time of need. For this reason, estate planning is crucial for married couples.
The good news? Estate planning as a married couple doesn’t have to be that complicated or scary. Proper guidance from a trustworthy professional combined with a well-defined plan enables you to develop a sound strategy that provides comfort to both partners. In this guide, we’ll go over the most important steps to take, vital paperwork to understand, and common mistakes to avoid – so you and your spouse can make informed decisions together! 23 Legal is here to lead the way to a life of marital bliss…
A Brief Overview of Estate Planning in 2025
Technology developments, shifting tax regulations, and an increasing focus on individualized planning will all influence estate planning in 2025. Couples need to evaluate digital assets such as cryptocurrencies and online accounts when creating their estate plans due to the recent surge in digital assets. Furthermore, tax laws are constantly changing, making it critical to be updated on exemptions, deductions, and future changes that may affect your estate.
A major upcoming change involves the anticipated decrease of the federal estate tax exemption levels. The current estate tax exemption rates are $12.92 million per person and $25.84 million for married couples until 2025, when they are expected to decrease. The lifetime gift exemption will likely decrease to $7 million for individuals and $14 million for married couples during 2026, which could result in a substantial loss of exemption benefits for those who choose not to make use of present limits. The annual exclusion gift amount will rise to $18,000 per person and $36,000 for married couples in 2025, thus presenting an estate planning opportunity before the exemption changes become effective.
Why Estate Planning is Crucial for Married Couples
Every married couple needs to create an estate plan since it goes beyond serving only wealthy or elderly individuals. Here’s why:
- Protecting Your Spouse: In the event that you pass away, your spouse can have financial difficulties or legal challenges if you don’t have a suitable estate plan. Making an estate plan guarantees that they are taken care of in accordance with your desires.
- Caring for Your Children: An estate plan enables you to name guardians and establish trusts to ensure the future of your children.
- Avoiding Probate: A properly organized estate plan enables your wealth to avoid the expensive and drawn-out probate procedure.
- Minimizing Taxes: By lowering estate taxes, careful preparation can guarantee that your loved ones receive a larger portion of your wealth.
- Preserving Your Legacy: By contributing to causes or organizations that are important to you, estate planning enables you to make a lasting impression.
Common Goals of Estate Planning as a Couple
When creating an estate plan, married couples often share similar objectives. Here are some of the most common goals:
- Providing for Each Other: A surviving spouse should have financial protection as one of the main objectives.
- Caring for Dependents: Guardianship arrangements for children along with educational and upbringing trusts.
- Distributing Assets Fairly: You must determine which assets will go to your heirs, charities, and other selected beneficiaries.
- Protecting Family Businesses: Family businesses need to create a plan that determines how ownership will transfer between generations.
- Minimizing Tax Liabilities: Estate and inheritance taxes become lower through well-planned strategies.
- Planning for Incapacity: Appointing someone to make financial and medical decisions if one or both spouses become incapacitated.
Key Documents Every Married Couple Should Know About
You need multiple essential documents through estate planning to execute your wishes after death. Here’s a brief overview:
- Will: The distribution of your assets after death is specified through this legal document.
- Trusts: A third-party trustee holds legal control of assets through arrangements that benefit designated beneficiaries.
- Power of Attorney: Grants someone the authority to make financial decisions on your behalf if you’re unable to do so.
- Advance Healthcare Directive: This document defines your medical choices and selects someone to handle healthcare decisions during times of incapacity.
- Beneficiary Designations: Ensures that assets like retirement accounts and life insurance policies are transferred directly to your chosen beneficiaries.
Top Benefits of Estate Planning for Married Couples
Married couples who establish estate plans benefit from a wide range of advantages, which include:
- Peace of Mind: Knowing that your loved ones are protected and your wishes will be honored.
- Financial Security: Ensuring that your spouse and children are provided for, even in your absence.
- Control Over Asset Distribution: Deciding exactly how and when your assets will be distributed.
- Reduced Family Conflicts: Clear instructions can prevent disputes among heirs.
- Tax Efficiency: Your wealth will stay intact by using strategies that reduce estate and inheritance tax burdens.
Essential Estate Planning Strategies for Couples
To create a robust estate plan, consider these strategies:
- Create a Comprehensive Will: Every estate plan must begin with a valid will. Your assets will be distributed according to your predetermined instructions through this arrangement.
- Establish Trusts: Trusts can provide greater control over asset distribution and help avoid probate.
- Update Beneficiary Designations: Review and update beneficiary information found in retirement accounts, life insurance policies, and other assets through regular assessments.
- Plan for Incapacity: Designate a power of attorney and create an advance healthcare directive to prepare for unexpected events.
- Consider Life Insurance: Life insurance serves to offer financial aid to your spouse and children after death.
- Review and Update Regularly: Life changes, such as marriage, divorce, or the birth of a child, necessitate updates to your estate plan.
Common Estate Planning Mistakes to Avoid
Couples who plan their estates can still make errors despite their best planning intentions. The following potential problems need attention:
- Procrastination: Your family becomes exposed to risks when you postpone creating your estate plan after an unexpected death occurs.
- Failing to Update Documents: Your present wishes and life situation may differ from what outdated documents contain.
- Overlooking Digital Assets: Ensure that digital assets, such as online accounts and cryptocurrencies, are included in your plan.
- Not Planning for Taxes: The failure to consider tax implications will cause your heirs to lose substantial amounts of money.
- DIY Estate Planning: While online templates may seem convenient, they often lack the customization and legal expertise needed for a thorough plan.
Partner with 23 Legal for Professional Estate Planning Assistance
Estate planning is a complex process that requires careful consideration and expert guidance. As life evolves—whether through marriage, buying a home, starting a business, or welcoming children—it’s essential to update your estate plan to reflect these milestones. Review the estate plan you established before marriage with your spouse because you need to modify it to match your current lifestyle.
At 23 Legal, we specialize in helping married couples create personalized estate plans that align with their goals and protect their loved ones. Our attorney Ben Weaver will work with you to navigate the legal complexities, minimize tax liabilities, and ensure your wishes are carried out properly.
Don’t leave your family’s future to chance. Contact 23 Legal today to schedule a consultation and take the first step toward securing your legacy.
Accomplish your estate planning goals with 23 Legal: (847) 447-6004
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.
