by April Harris Jackson | Aug 11, 2023 | Family, Marriage
Have you said ‘I do’ recently and are beginning the exciting journey of wedded bliss? Understandably, as a newly consolidated duo, estate planning techniques might not top your list. But did you know the importance financial management and estate planning holds in safeguarding your shared future? Let us guide you to financial serenity and legal obligation smoothening activities.
We understand that marriage is a joyous milestone, and with it comes the excitement of starting a new life together. However, it also brings a range of financial and legal responsibilities that may require careful consideration. As two lives intertwine, so do their finances and assets. Proper financial and estate planning not only allows newlyweds to manage their money effectively but also ensures the protection and distribution of their assets should the unexpected occur. By taking proactive steps now, couples can safeguard their financial interests and pave the way for a prosperous journey together.
Key Financial Factors
Combining finances can foster transparency, build trust, and simplify money management. However, it’s essential to address individual financial habits, expectations, and goals to create a seamless financial partnership. While you may not choose to place all your money into joint accounts, creating a joint account for shared expenses might be a good place to start. Work with your partner to craft a budget that aligns with both of your priorities and allows you to save for future goals. Don’t forget to set aside funds for personal interests, too.
With marriage also comes the need to reassess insurance coverage. Do your existing policies provide adequate protection for both of you and any dependents? Regardless of outside employment, be sure to take into account the work each spouse does around the home and what it might cost to replace that in the event of an accident or incapacity. Take this time to also review beneficiary designations on these accounts to help safeguard each other’s financial well-being and ensure your policies are set up how you would like them to be.
Many of us carry debt, and when we get married, it comes too! Addressing existing debts requires planning and coordination. Which debts will be shared and which will be tackled individually? We recognize that managing joint debts can be a delicate task, but it’s an important topic to create a plan for as soon as you can.
Action Items:
- Discuss how you want to manage your finances- joint, separate, or a combo?
- Evaluate and consolidate insurance policies- life, health, home, auto, etc.
- Review and update beneficiary designations on insurance and retirement accounts
- Discuss plan to address debts brought into the marriage and how you plan to handle debt during your marriage
Key Legal Considerations
Though it might not feel urgent, now is a great time to create or update your estate plan! Creation of a Last Will & Testament ensures that each spouse’s wishes regarding asset distribution are carried out after their passing. One common misconception is that your assets automatically pass to your spouse after your death; this is not always the case, but a will can help ensure that your wishes are followed.
Another crucial part of your estate plan are the Power of Attorney documents. Used in the event you are unable to make financial or healthcare decisions for yourself, these documents allow a trusted individual to act on your behalf. While you are not required to name your spouse as your Power of Attorney, it is an easy way to empower them to act in the event of an unexpected emergency. These documents can be written in a way that clearly defines a Power of Attorney’s role and abilities, and they should be reviewed regularly.
Action Items:
- Create or update your will or trust to address your new marital status
- Create or update your powers of attorney
Key Tax Considerations
The last major consideration after getting married is in regards to tax planning. There are a variety of tax filing statuses available for married couples, and if you are married as of December 31, the law says you were married for the whole year for tax purposes. If you are planning to change your name after marriage, be sure to report it to the Social Security Administration as soon as possible. Your name on your tax return must match what is on file at the SSA; if it doesn’t, it could delay your refund!
Another thing to review are your withholding amounts. Newly married couples must give their employers a new Form W-4 within 10 days of their marriage. If both spouses work, you may move into a higher tax bracket. The Tax Withholding Estimator on the IRS website is a great tool to use as you complete your new W-4. Proper tax planning can lead to substantial savings!
Action Items:
- Change your name on all relevant government documents if you plan to
- Consider whether taxes will be filed jointly or separately
- Update your tax documents with your employer
Proper financial and estate planning is an essential step for newlyweds to set the stage for a secure and prosperous future together. By understanding and addressing the financial changes that come with marriage, establishing a comprehensive estate plan, and optimizing their tax situation, couples can embark on their journey hand-in-hand, prepared for whatever life may bring. Being proactive today brings peace of mind for tomorrow!
If you’re ready to take the next step as a couple, click here to schedule an initial call with our office. We’d love to work with you as you create your estate plan and set goals for your life together!
by April Harris Jackson | Aug 4, 2023 | Care and Savings Assessment, Healthcare
Being a parent to a special needs child is a journey filled with unique joys, challenges, and responsibilities. As you navigate the intricacies of caring for your child’s specific needs, it’s crucial to plan ahead to ensure their well-being and quality of life in the years to come. By taking proactive steps and establishing a comprehensive plan, you can provide a secure future and peace of mind for both you and your special needs child.
We will explore essential considerations and practical strategies to help you plan ahead for your special needs child. From financial planning to legal arrangements and support networks, we want to guide you through the process of creating a holistic plan that addresses your child’s specific needs.
- Understand Your Child’s Needs: Start by gaining a thorough understanding of your child’s unique challenges and abilities. Consult with healthcare professionals, therapists, and educators who can provide valuable insights and assessments about how your child’s medical condition is likely to affect their development. It’s important to understand your child’s medical condition as it currently is, as well as how it will progress over the coming years. This knowledge will form the foundation of your planning process, helping you identify the areas where your child requires additional support and assistance.
- Create a Financial Plan: Financial planning is crucial when it comes to securing your child’s future. Explore resources such as government assistance programs, insurance options, and special needs trusts. Consider working with a financial advisor experienced in special needs planning to develop a comprehensive financial strategy that accounts for long-term care, education, therapy, and other necessary expenses. One great option in Tennessee is an ABLE account – this savings/investment account is exclusively for disabled individuals and does not count against benefits that may have financial restrictions.
- Establish a Legal Framework: Ensure you have the appropriate legal arrangements in place to protect your child’s interests. This includes creating a special needs trust, designating a guardian or caregiver, and documenting wishes for medical decisions. Consult with an attorney experienced in special needs law to ensure your legal documents align with your child’s specific requirements and comply with local regulations.
- Build a Support Network: Seek out support networks and connect with other parents and families who have special needs children. They can provide valuable guidance, emotional support, and share resources and insights. Additionally, explore local organizations, advocacy groups, and community services that cater to the needs of special needs individuals. Additionally, you’ll want to make sure that you are taking care of yourself! Organizations like Tennessee Respite Coalition can work with you to create a plan to rest and recharge, which all parents need but becomes more important for you to be fully present when you are with your child. Building a strong support network will not only benefit your child but also provide you with a sense of community.
- Plan for Transitioning into Adulthood: As your special needs child approaches adulthood, it is important to plan for their transition into independent living or alternative arrangements. Explore vocational training, employment opportunities, and housing options that are tailored to their needs. Investigate government programs that offer support and services for adults with special needs, ensuring a smooth transition into adulthood. When your child turns eighteen, you will want to discuss with your attorney whether a conservatorship is needed in order for you to continue having legal decision-making authority or if your child can engage in supported decision-making to ensure that you can continue to help them as your family continues to navigate benefits and resources that are available to them.
- Regularly Review and Update Your Plan: As your family gets older each year, you will need to anticipate the financial, emotional, and social needs of your special needs child, yourself, and anyone else that you care for. Your child may have siblings who should begin to be included in a care plan as they become adults. Many adult siblings or other family members provide care and guidance when a special needs child loses their parents. Your child’s needs, circumstances, and available resources will change over time. Therefore, it’s essential to review and update your plan periodically. Stay informed about new laws and regulations that may impact your child’s benefits or financial planning. Regularly reassess your financial situation, adjust your goals, and ensure that your plan remains relevant and effective.
Planning ahead for your special needs child requires careful consideration and proactive action. By understanding your child’s needs, creating a comprehensive financial plan, establishing legal arrangements, building a support network, and planning for their transition into adulthood, you can ensure a secure and fulfilling future for your child.
If you are ready to learn more about your legal options and requirements when it comes to caring for your special needs child, especially as they reach adulthood, click here to schedule an initial call with our office. Speaking with an experienced attorney can help provide peace of mind as you continue caring for your child and planning for their future.
Remember, you are not alone on this journey. Reach out to professionals, support groups, and organizations specializing in special needs care. Their expertise, guidance, and shared experiences can provide invaluable support as you navigate the path of planning for your special needs child’s future. Embrace the opportunities to advocate for your child, empower yourself with knowledge, and take the necessary steps to create a solid plan that supports their unique needs. By planning ahead, you can provide a stable and loving environment where your special needs child can thrive and reach their full potential.
