Once your marriage is official, your relationship becomes entirely different from both a legal and financial perspective. With this in mind, yesterday we discussed the first three of six essential items you need to address in your plan, and here we cover the final three.
04 | Durable Power of Attorney
As we touched on yesterday in part one, estate planning is not just about planning for what happens when you die. It is equally important — if not even more so — to plan for your potential incapacity due to a serious accident or illness.
If you become incapacitated and have not legally named someone to handle your financial and legal interests, your spouse would have to petition the court to be appointed as your guardian or conservator to handle your affairs. Though your spouse would typically be given priority, this is not always the case, and the court could choose someone else.
And the person the court appoints could be a family member you would never want having control over your life, or it could even be a crooked professional guardian, who would charge exorbitant fees, keep you isolated from your family, and sell off your assets for their own benefit. In any case, if you have not chosen someone to make your financial and legal decisions in the event of your incapacity, the court will choose for you.
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