Estate Planning with Your Spouse in Mind

When putting together an estate plan, people most often include their children, grandchildren, and other heirs. But with estate planning for married couples, it’s crucial to make sure you plan for the surviving spouse. 

For all of your estate planning and insurance needs, talk to Farm Bureau. Our agents and advisors can help you and your family make sure you’re prepared.

What’s in an Estate Plan?

An estate plan is a collection of documents that outlines what you want to happen if you can’t make decisions on your own or if you pass away. The documents can include a will, durable power of attorney, and healthcare power of attorney, and can account for beneficiaries and guardianship if you have minor children or dependents.

Not everyone needs all these documents, but it’s important to make sure you’re not missing anything and that both spouses are covered in the event that the other passes.

Doesn’t My Spouse Get My Assets Automatically?

Don’t assume all of your assets will pass to your spouse. If you don’t have a will, your assets will be distributed according to state laws, which vary. Even with a will, your estate has to go through probate, which can be time consuming and expensive. 

Review Your Beneficiaries 

Make sure the beneficiaries listed on your 401(k) accounts, life insurance and other financial documents are up to date. This step is always important, and especially so if you’ve been married more than once and you don’t intend for your assets to go to a previous spouse. 

Naming beneficiaries, whether it’s your spouse, children or others, is crucial because the assets go directly to the intended person, without having to go through probate. 

Make sure you check other important documents, like your power of attorney and medical power of attorney at the same time, in case you want to make any changes. For example, maybe you’ve chosen your spouse to make medical decisions on your behalf, but as time has passed, you decide naming an adult child works better for your family situation.

Consider a Marital Trust 

A marital trust can offer tax savings and protection, so it may be an important part of estate planning for surviving spouses, especially if your net worth is high, and you want to keep your assets within the family. These trusts are irrevocable, so it’s important to set them up correctly.

Other types of marital trusts include:

• Qualified terminable interest property trust (QTIP)
• Bypass trust 
• Spousal lifetime access trust

Trusts are complicated, so it’s important to work with a qualified professional to choose the type that’s the right fit for your family and help you put together the trust documents. Your team can also explain the different options you can put in place depending on which spouse passes first.

Turn to Farm Bureau for Peace of Mind

At Farm Bureau, we know that having the right estate plan can help give you and your spouse peace of mind. Reach out to a Farm Bureau agent or advisor today to schedule a consultation on estate planning for spouses.