LegalJourney Blog

What steps should you take to put your estate in order while you're young?

A recent survey of 2,000 married couples has found that a third of them do not have life insurance; more than 40 percent admit to being financially unprepared for the death of a spouse. In order to put your family in a state of preparedness, the following should be considered.

Calculating Life Insurance Needs

Commonly, people, especially young people, stick with whatever life insurance their employer provides. There are two problems with this method: the amount of life insurance is likely to be insufficient, and your life insurance policy will probably be lost if you lose your job.

In calculating the amount of life insurance you need, it is important to take into account:

· Mortgage and other debts

· Day care and college tuition

· Annual income of working spouses for requisite number of years

· Cost of replacement services of at-home spouse or caregiver

· Insurance costs

· Savings

Understanding Your Spouse's Life Insurance Policy

A study has found that married adults without children are less likely to understand the specific details of one another's life insurance policies. Perhaps even more disturbingly, women, with or without children, are less knowledgeable about their family's insurance policies than their partners. It is recommended that both partners in a marriage be aware of:

· Which company holds the policy

· How much coverage it provides

· How much it costs

· How long its term is, if it is a term life policy

· Whether the policy can be converted to permanent life insurance

Writing a Will

It is alarming to realize that 70 percent of adults with minor children do not have wills. This means that their estates, their executors and the guardians of their children have not been settled. They are running the risk that, should they die prematurely, state inheritance laws, not their own wishes, will determine what happens to their assets, and possibly who takes care of their children.

Keeping All Financial Records and Important Documents Secure and Available

Between one-fifth and one-third of married adults are unsure of how or where to access their family's most important records. It is important that financial documents, contact numbers of advisors, insurance policy numbers and related information be kept in a secure place known to both partners and to at least one other trusted individual.

While it is uncomfortable to face the possible harsh realities of our futures, it is not nearly as unpleasant to face them when life is going well as under the stress of sudden tragedy. As you proactively plan for a secure future for your family, you should engage the services of an experienced estate planning attorney, one who can make sure you cover all the financial, emotional and legal bases.