Who Should Consider Separate Plans?
Couples with complicated estates or who have differing needs and wishes should consider developing separate plans. Couples can benefit from separate estate planning in these circumstances:
- Second marriages: Those getting remarried may want to protect each spouse’s premarital assets.
- Blended families: Separate plans for custody, power of attorney, and other arrangements might be helpful for those with children from different marriages.
- Complex assets: Separate plans may be suitable for individuals who have received a substantial inheritance or own businesses, real estate, or other substantial assets.
A separate plan is when a married couple uses estate planning tools, such as revocable living trusts, to protect their interests individually, rather than jointly. Individual plans can provide couples with more flexibility in handling premarital assets, child custody, and other situations where each spouse’s responsibilities or wishes may differ.
Key Benefits of Separate Plans
Some of the benefits of making separate estate plans include the following:
- More flexibility to protect each spouse’s interests and serve their individual wishes
- Easier handling of custody and beneficiaries for blended families
- Helps couples plan for how to handle separated finances or premarital assets
- Protecting one spouse’s assets if the other has creditors
- Depending on state law, some tax benefits may be available
Who Should Consider Joint Plans?
Joint estate planning is the most common approach and is beneficial to most couples without overly complicated finances or family situations. Young newlyweds without any significant individual assets are ideal candidates for a joint estate plan.
A joint plan is the ‘default’ option for estate planning. Joint planning allows a married couple to outline their shared wishes for their assets, care, and beneficiaries through a simple, uncomplicated package of documents.
Key Benefits of Joint Plans
Joint plans offer simplicity and security for married couples, among other key benefits:
- Lays a strong foundation for your marriage and family
- Avoids complexities or conflicts between spouses’ wishes
- Quicker and easier to execute, saving your family time and stress
“Most of the couples that come to us are going to have a joint plan.”
Differences Between a Separate vs. Joint Estate Plan
| Separate | Joint Plan | |
|---|---|---|
| Flexibility | Better for blended families, second marriages, or other situations with divided interests | Functions best when both spouses are on the same page |
| Complexity | Helps couples address complicated issues like individual assets or custody of children from previous marriages | Keeps things simple when simple solutions work best |
| Cost | Involves making multiple versions of key documents | Saves money by requiring less work and fewer documents |
| Asset Protection | Can achieve more specific goals and provide stronger protections for complex assets | Protects marital assets but with less flexibility |
Separate or Joint? We Can Help You Choose the Plan That Fits You Best
Regardless of whether your situation is best suited for joint or separate plans, every couple should have an estate plan in place. The experienced attorneys at Evans & Davis can help you start your estate planning journey through a free consultation. We’ll keep things as simple as possible and recommend the best steps for your individual circumstances and your family’s unique situation.
We’ve served over 30,000 clients from across the country, helping couples just like you protect their families’ legacies.
Contact us online today to learn more about how we can help you.
