• Get a postnuptial agreement to outline how assets and debts will be divided in the event of divorce or death.
• Create an estate plan for who should receive certain assets when you pass away, covering real estate, personal property, etc.
• Draft a living will to outline medical treatments you would want if you were unable to communicate due to illness or injury.
• Set up a power of attorney document so someone else can act on your behalf if you become incapacitated.
• Establish a trust fund for financial security and tax savings for future generations.
It’s never too early to start thinking about securing your family’s future. Whether you’re married, separated, or in a long-term relationship, there are legal steps you can take to protect yourself and your loved ones. Here are a few of the most important ones.
Get a Postnuptial Agreement
A postnuptial agreementis like a prenuptial agreement, except it is made after you are already married. A postnuptial agreement outlines how assets and debts will be divided if the marriage ends in divorce or death. It also helps couples protect their assets from creditors during bankruptcy proceedings. Just make sure you employ the help of a trusted family law firm to ensure the agreement is legally binding. They can also provide essential advice and insight into the process.
Create an Estate Plan
An estate plan is essential for all families, regardless of size or wealth. This document outlines who will receive certain assets when you pass away and who will fulfill your wishes after death. Estate plans cover the following assets:
Real estate
Real estate properties like your home, vacation homes, and any rentals you own. It can also include any land that you own. You can also specify who will receive this property in the event of your death.
Personal property
This includes any personal items such as jewelry, art, and antiques. In your estate plan, you can designate who should receive these items upon your death.
Investment accounts
Investment accounts such as stocks, bonds, mutual funds, and retirement savings need to be included in your estate plan. You can name a beneficiary for each account so the assets will be passed on according to your wishes.
Life insurance policies
Life insurance policies are an essential part of your estate plan. You can name a beneficiary for each policy so the assets will be passed on to the designated person upon death.
You should update your estate plan at least every three years to make sure it reflects any changes in your life that could affect it.
Create a Living Will
A living will outlines what medical treatments you would want if you become unable to communicate due to illness or injury. This document gives both you and your family peace of mind knowing that everyone is on the same page in terms of what treatment options should be pursued if needed.
Additionally, a living will can also serve as your legal representative if you become incapacitated and are unable to make decisions for yourself. This document allows you to appoint someone of your choice who has the authority to make medical decisions on your behalf.
Create Power of Attorney Documents
Power of attorney documents gives another person the authority to act on your behalf if you become incapacitated due to illness or injury. These documents can cover anything from financial matters to health decisions, so it’s important that they reflect exactly what type of decisions you want someone else to make on your behalf in such an event.
Additionally, you should have both a general power of attorney and a durable power of attorney in your estate plan. A general power of attorney will allow someone to act on your behalf for a specific period of time, whereas a durable power of attorney remains in effect even if you become incapacitated.
Set Up a Trust Fund
Finally, setting up a trust fund can be a great way to ensure your children’s future is secure, even if something happens to you or your partner. Trust funds can provide financial security as well as inheritance tax savings, so it’s worth looking into this option if you have any significant assets that need protecting for future generations.
Taking legal steps to secure your family’s future is an essential part of responsible planning and preparation. From getting a postnuptial agreement, creating an estate plan, setting up a living will or power of attorney documents, to establishing a trust fund – these are all valuable steps that can help you protect yourself and those around you in the event of illness or injury.
While it may not be fun to think about such possibilities, taking proactive measures now can make all the difference for you and your loved ones. So don’t delay- research what options work best for you today!
