Why Every Married Couple Needs a Will (Even If You Have No Assets Yet)
Many people think because they don’t have any assets, they don’t need to do estate planning. Maybe you think you’re too young, too poor, or that everything will just go the way you expect it will if you die. Today, we want to take a closer look at why that is a misconception and why it’s important to do estate planning— even if you don’t have assets yet.
What are Assets?
Oftentimes, people think they don’t have assets, but it’s important to remember that the sum of all of your properties and debts makes up your estate. Assets are anything you own. From real estate to your personal photos on your phone—these things make up your estate, and it’s highly likely you have an idea of what you want to happen to them upon your death.
People often don’t consider their estate to have value or say they don’t have assets because they don’t yet own real estate. It’s important to remember that you don’t have to own real estate to have assets.
But even if you truly don’t have any assets of value yet, having an estate plan in place is crucial to provide instructions for your spouse should you pass away.
Let’s go over some key reasons to make sure you have an estate plan in place even if you have limited assets.
A Will Outlines Your Wishes
We have encountered many widows, young and old, who have to deal with unnecessary stress put on them by the family of their deceased spouse. This is perhaps because they were recently married and their spouse’s parents think it would have been their child’s wish that they be provided whatever item the parent wants from their child’s estate. And this may actually be true. But without a Will in place, no one truly knows for sure.
Having a Will in place can prevent discord between your family and your spouse— which I’m sure you want to avoid.
A Will Allows You to Leave Someone in Charge
Your Will allows you to name the people, in the order you prefer, to handle your last affairs. These people are called executors. This can also prevent fighting between your spouse and family because you left a specific person in place to handle your estate.
A Will Simplifies Probate
There is no getting around it. Probate can be brutal. It’s a lengthy process that is only made worse by grief. What can make the probate process even more unbearable is if you die intestate. Dying intestate is a legal term that simply means dying without a valid Will. When this happens, there are extra hoops that your spouse will need to jump through in order to get the probate process going. After that, the state will make determinations about who gets what based on estate law.
If you die with a valid Will it doesn’t matter what the estate law says, your Will determines how your estate is distributed. But without it, the state law for distribution comes into play. This tends to leave people in difficult situations—either emotionally or financially.
A Will Is the Only Document That Allows You to Name a Guardian for Your Minor Children
Your Will is the only place you can name a guardian for your minor children. You may not have assets, but you may have a minor child. It’s crucial that you make a plan for what happens to your child should you die while they are still a minor.
It may be that you and your spouse have this child together, and the Court would not intervene because your spouse would still be a legal guardian of your child. But perhaps you are a solo parent to this child, and their other parent is unavailable to step in and carry out parental responsibilities. Having a legal document in place to name who your choices for legal guardians would be is crucial.
The last thing any parent wants to happen is for the state to make this decision for them. It can be a long and laborious process to find someone available to raise the child. In the interim, your child may enter the foster care system. This would be heartbreak on top of the heartbreak of losing you. Planning ahead and naming a guardian helps mitigate and prevent scenarios like this.
Beyond the Will
There are many other estate planning documents that are important to have to limit stress on your loved ones in the event of an emergency or your death.
Power of Attorney – this document allows you to name a person to make business, financial, and legal decisions on your behalf while you are alive. This document can be utilized at any time or just upon your incapacity.
Advance Directive for Healthcare – this document allows you to predetermine the type of catastrophic medical care you wish to receive. It also allows you to name an agent to make medical decisions for you should you be unable to do so.
Standby Guardian – this allows you to name a temporary guardian to jump in and care for your minor child should you be unable to for any reason. This person should be someone local to you. Remember, this is for temporary care only. It may be the same person you name in your Will for permanent guardianship upon your death but it doesn’t have to be.
Trust – this is a legal agreement between a trust maker (you) and a trustee (maybe you) that directs how your assets are utilized now that they are owned by the Trust. Essentially, the Trust becomes the owner of your assets. If you have limited assets, this may not be the best estate tool for you. But it’s best to chat with a professional to know your options before ruling yourself out. The beauty of a Trust is that it avoids probate altogether (when used correctly).
As you can see, estate planning is still needed even if your net worth is lower. Even if you don’t own real estate, putting a Will in place protects your wishes and your spouse.
Call us at (404) 736-6066 or visit our website to schedule a consultation about how we can help you alleviate stress from your life and your loved ones’ lives now and after your death.