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Marriage
means updating important documents
While
you become a husband and wife, you also should become a
beneficiary of your spouse’s estate. These 10 steps will
help get you started.
By
Adriane G. Berg
Whether you’re
a first-time newlywed or you’ve re-enlisted, there are a
number of important document changes or updates you must
make when you marry. Some of these changes involve
designation of your beloved as a beneficiary. In some
cases, third parties may have to sign off on the changes
to make way for your significant other. It’s best to take
care of these matters as soon after the nuptials as
possible.
Follow this quick checklist to ensure that you’ve taken
care of all those important documents, so you or your
spouse doesn’t find out later that your financial and
personal affairs aren’t as you had planned. By looking at
the documents that form the basis of your past financial
life, you are immediately led to the things that need
changing.
Pay attention to the following
categories:
1. Government entitlements, like Social Security, need
to be checked.
Visit or call the local office to change forms that
designate death benefit beneficiaries. See who is listed
as “next of kin” on all forms, including motor vehicle
registration.
2. Pay special attention to business relationships.
If you have an interest in a family business or one you
started yourself with a partner, now is the time to review
the partnership or shareholder’s agreement. What
provisions have been made if you want to sell, if you
cannot work, if you want to share your duties with your
mate or if you die? In some instances shared
responsibility and ownership is quite possible, in others
it’s out of the question. But, in every case, troubles
occur down the line when no thought is given to
transitions at the outset.
Since nuptial agreements can be made even after a marriage
takes place, dealing with business interests can lead to
agreements between your partners and/or you and your
spouse. If you’d rather avoid the hassle, just listen to
some of the horror stories from colleagues in your field.
Deal with it now, rather than later.
3. All insurance policies, including the disability
policy provided at work.
It’s easy to keep track of your life insurance, but check
out free insurance that may come with a credit card or
club membership.
4. Review the benefits you receive from any
organizations, such as trade clubs, travel groups or
automotive clubs.
Often these memberships include multiple benefits, from
travel discounts to auto insurance. See which of these can
be extended to your spouse.
5. Bank and brokerage statements.
Check the titling of all accounts. They will supersede
your will, if there is a conflict.
6. Wills, trusts and powers of attorney.
They are probably outdated. Or, if this is your first
marriage, they may not exist at all. Make this a catalyst
for, at least, a simple will and power of attorney. You
may be the beneficiary of your parents’ will, life
insurance policy, or named by them in a deed. If you were
unmarried when they created these bequests, your siblings
are likely to inherit in “your place and stead,” should
you meet an untimely demise. It’s important to
diplomatically remind your parents or other benefactors
that your new spouse is your preference, should the
unthinkable happen. Remember though, it’s still their
choice. Speak to them again in a year if they seem
reluctant to name your sweetheart as your substitute
beneficiary directly after the marriage.
7. Health-care proxies and other non-monetary
designations.
Who is listed as the emergency contact at your health
club, office or school? Check these out for your own
safety and your family’s convenience.
8. Deeds and other real estate documents.
If you are part-owner of the family summer home with your
parents or siblings, this is a perfect time to discuss
third-party designations.
9. Contracts.
Are you in a contract to receive or pay money, or in a
business deal of any kind? If so, read the paragraph that
relates to the rights and responsibilities of your heirs.
I guarantee it’s there, but you skipped over it because it
had no meaning at the time.
10. Pensions, IRAs, annuities and other retirement
accounts.
Treat these with the greatest care. Check out who is the
beneficiary and see your accountant to understand the
ramifications of a change. Do this early in your marriage
and the information you get will help you make pension
decisions throughout your work and married life.
Once you have identified the areas that you must address,
here are some practical ways to take care of things with
dispatch.
 | Involve your spouse.
Changing beneficiaries on health, veteran’s and
insurance benefits will take time and poring through
some paperwork. By sharing the load with your spouse,
you accomplish three things. First, you prove your
loyalty. Second, you inform your spouse of his or her
rights so that none of your entitlement goes missing.
Third, you engage your spouse in a dialogue about which
of his or her documents must be changed to name you as
beneficiary instead of parents, former spouses or
others.
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| Deal with conflicts and
disagreements. In a second
marriage, there may be competition with children of the
first family. The renaming of beneficiaries brings it
out in the open in a constructive way, so you can
resolve the problem.
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None of these issues are necessarily
fun, but they’re definitely necessary. You can avoid later
conflicts and unwelcome surprises by working through these
issues early in your marriage.
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