Your CartTo say family structures have changed dramatically over the years is an understatement. Once, the most common family structure was a married man and woman with kids. The man was considered the breadwinner of the family while the wife tended to the home and children. Wow, have times have changed!
Today, we now see more blended families after a divorce or death; same-sex relationships/marriages; cohabitation without marriage; single parent families; unmarried co-parenting families; multigeneration living together in one home while sharing expenses and family duties; and the list goes on.
All of these family structures need to be taken into consideration when working through your estate planning. While I am not an attorney, and this should not be construed as legal advice, I am of the opinion that this is why having the proper legal documents prepared is so important. Where once it was common, in most cases, for a married spouse to automatically receive the personal property and assets of their deceased spouse, that can no longer be said in all circumstances.
Did you realize, cohabitation couples have no legal rights to their deceased partners property or assets unless a Will is in place naming such rights. Only 7 Sates recognize “common-law marriage” and often there are set parameters regarding dates and years before it is even considered “common-law.” In a cohabitation scenario, they are also not legally allowed to make healthcare decisions or receive healthcare information regarding their significant other without the proper legal paperwork such as Health Care Representative or Power of Attorney in place.
What happens to the assets of a single parent family with small children? Where and with whom will the children reside? Who sees to their needs? Assets? Etc.
What happens to the assets of a blended family with adult children? Do Mom's family heirlooms reside with the 2nd spouse instead of passing to her own children? When the 2nd spouse dies, will the assets go to his heirs?
The point is, each person needs to look at their specific circumstances and know the facts (not hearsay) regarding healthcare representative, distribution of property, and accessibility of assets for their circumstances, then plan accordingly.
It is important to note that my organizer, When The Time Comes, is not considered a legal document when it comes to distribution of personal property and assets. It is most beneficial to have the information in a written format, but that does not make it legally binding in a court of law.
The greatest benefit of When The Time Comes is the immense amount of information it contains, if completed, for those who are responsible for closing an estate or taking responsibility for a person when a medical crisis occurs. While the legal paperwork such as a Will, Power of Attorney, and Healthcare Representative, are extremely important to have completed, the documents are only a portion of the full picture.
Legal documentation provides the protection for your asset distribution and who may speak on your behalf, while the organizer provides the information needed to work through the process of closing your estate or maintaining a household on your behalf.