10 Estate Planning Questions Every California Couple Should Answer

Newly Married? 10 Estate Planning Questions Every California Couple Should Answer

You spent months planning your wedding.

You chose the venue, the flowers, the music, the guest list, and perhaps even the seating chart.

Now it’s time to plan for the life you are building together.

Most newlyweds assume marriage automatically gives their spouse the legal authority to make medical decisions, manage finances, and inherit assets.  California law does not provide these protections.

Whether you were married last week or last year, here are ten important questions every California couple should answer.

1. If You Couldn’t Speak for Yourself, Who Would Make Medical Decisions?

One of the most common assumptions I hear from newly married couples is:

“Of course my spouse can make medical decisions for me.”

California does not have a statue giving a spouse the right to make health care decisions. There is a statute allowing the attending physician to select a decision maker. If you were a doctor, would you want to chose between a mother and a spouse? Or an adult child and new wife?

During a medical emergency, your spouse will themselves speaking with doctors, nurses, hospitals, rehabilitation facilities, insurance companies, and family members who all have opinions about what should happen next.  

What I want for my clients is the ability to share a health care directive that clearly states that they are in charge and exactly what is supposed to happen.  The directive should also honor all relationships. You can instruct your spouse to share information with your parents or adult children, or take their feelings and wishes into account when planning an end of live celebration. Compassion for loved ones is a big part of drafting health care directives.

An Advance Health Care Directive allows you to:

• Name the person you want making medical decisions
• Express your wishes regarding treatment
• Provide guidance about end-of-life care
• Clarify who should receive medical information
• Reduce the likelihood of family conflict

The goal is not simply to create a legal document.

The goal is to make one of life’s most difficult moments a little easier for the people you love.

2. If Something Happened to You Tomorrow, Would Your Spouse Be Financially Protected?

Most newlyweds assume that everything they own will automatically pass to their surviving spouse.

Sometimes that is true. Deeds with survivorship clauses and joint bank accounts or accounts and insurance policies with transfer or pay on death provisions.

Sometimes this is not true, accounts without beneficiaries, businesses without succession plans, real estate without survivorship clauses, and more.

The answer depends on:

• Whether assets are community property or separate property
  • A surviving spouse is entitled to all of the community property if the deceased spouse has not made other beneficiary designations. They are only entitled to a portion of separate property. And newlyweds generally only have separate property.
• How accounts are titled
• Beneficiary designations

Family inheritances, gifts from parents, businesses, stock options, and real estate owned before marriage often require special attention.

The best estate plans make sure the surviving spouse is protected while also respecting the family’s long-term goals.

3. Have You Reviewed Every Beneficiary Designation?

This may be the most important estate planning task for newlyweds.

And it often takes less than an hour.

Review the beneficiary on your:

• Retirement accounts
• Life insurance policies
• Employer benefits
• Transfer-on-death accounts
• Payable-on-death accounts

I cannot tell you how many times I have seen a newly married client discover that a parent, sibling, or (the worst case scenario) a former partner is still listed as the beneficiary.

Beneficiary designations generally control who receives an asset regardless of what other estate planning documents say.

If you recently got married, pull out every beneficiary form and review it.

And if you think “well my parents would give my spouse the money”, this may be true. But it could have tax consequences for both your parents and your spouse. 

4. What Happens to Your Home if One of You Dies?

The family home is usually a couple’s largest asset. And in California there are many ways for a married people to hold title: Community Property, Separate Property, Joint Tenancy, and Tenants in Common. All of these have different results on death and divorce.

One of the most common questions newlyweds ask is:

“Should I add my spouse to the deed?”

Before signing a new deed, consider:

• Is there a prenuptial agreement?
• Was the property inherited?
• How large is the mortgage?
• Are there children from another relationship?
• What are the consequences in the event of divorce?

The decision to add a spouse to title is not a simple one and should be made after discussion with both an estate planning attorney, and with a family law attorney.

5. Are You Protecting the Life You Are Building Together?

Estate planning and insurance planning go hand in hand.

When people marry, they often begin relying on one another financially.

Ask yourselves:

• Would the surviving spouse have enough money to remain in the home?
• Could they maintain their standard of living?
• What happens if one spouse becomes disabled?
• Is there sufficient liability protection?

At De Fonte Law PC, we require all of our clients to compete a full insurance audit.

• Life insurance – is it sufficient to meet the couples goals, is a work policy enough?
• Disability insurance – is the largest asset, the power to earn money, sufficiently protected.
• Liability Coverage – all of the policies must work together without gaps in insurance:
  • Umbrella liability coverage – this is non-negotiable.  Every client must have umbrella insurance.
  • Homeowners or renters insurance
  • Auto Insurance

6. If You Became Incapacitated Tomorrow, Could Your Spouse Help You?

Most people assume marriage automatically gives a spouse authority over financial matters.

No one has the right to do this for another adult.  This is why estate planning ideally begins at eighteen years old!

Without proper planning, your spouse may face obstacles when trying to:

• Access accounts
• Manage investments
• Handle real estate
• Communicate with financial institutions
• Deal with tax matters
• Speak with an employer
• Speak with business partners

A Durable Power of Attorney can provide authority when it is needed most.

Without one, your spouse may find themselves navigating court proceedings during an already stressful situation.

7. Have You Talked About Children Yet?

Blended families are common, and we work with many newlyweds who have children from prior relationship or became single parents by choice.  Bringing families together always requires careful planning, including careful estate planning.

• Is there a difficult ex in the mix, so that privacy in estate planning is mission critical?
• Is either parent planning to adopt?
• Should children receive gifts when their own parent dies, not wait for a surviving spouse to pass?

Couple who do not currently have children should discuss what happens if they do. Questions worth considering include:

• Would your current life insurance policy be sufficient if you had children?
• Who would care for your children?
• Who shares your values?
• Who could provide a stable home?
• Would that person be financially prepared?

8. Do You Have a Prenup or Separate Property?

Marriage does not automatically erase separate property. Many people think that because they are married they will inherit everything from their spouse. This becomes even more complicated when there is a prenup or a postnup.

If either spouse owns:

• A business
• Real estate
• Family wealth
• Stock options
• Inherited assets

those assets should be reviewed carefully.

A prenuptial agreement and an estate plan serve different purposes.  A prenup is a guide for divorce, not for the end of happy marriage. An estate plan serves to protect a surviving spouse.

This is particularly important for second marriages, blended families, business owners, and clients who expect future inheritances.

9. Are Your Advisors Talking to Each Other?

One of the biggest risks I see is not bad planning.  It is disconnected planning.  Often, each person has their own advisors, who they may or may not have told about their engagement. 

• Your CPA may be giving excellent advice.
• Your financial advisor may be giving excellent advice.
• Your insurance professional may be giving excellent advice.
• Your attorney may be giving excellent advice.

But if they are not communicating, important opportunities can be missed.

The best outcomes happen when the professional team collaborates.

Estate planning should not happen in isolation.

10. Have You Talked About Your Values?

This may be the most important question of all.

Many couples spend more time discussing wedding flowers than discussing:

• Aging parents
• Caregiving responsibilities
• Family expectations
• Children
• Money
• Charitable goals
• Long-term priorities

Estate planning creates an opportunity to have those conversations. We have worked with clients married for decades that found estate planning bonding and intimate! The documents matter, but the conversations matter more.

Frequently Asked Questions About Estate Planning for Newlyweds

Do newlyweds need an estate plan?

Yes. Marriage is one of the most important life events that should trigger an estate planning review. It affects medical decision-making, financial management, beneficiary designations, inheritance, insurance planning, and family protection.

Does marriage automatically give my spouse authority to make medical decisions?

Not in California. An Advance Health Care Directive provides clear guidance about who should make medical decisions and helps reduce confusion during a medical crisis.

Should I change my beneficiary designations after getting married?

In most cases, yes. Beneficiary designations should be reviewed after any major life event, including marriage.

Do married couples need powers of attorney?

Yes. A Durable Power of Attorney allows a trusted person to manage financial matters if you become incapacitated.

Should I add my spouse to the deed?

Maybe. The answer depends on whether the property is separate property, whether there is a prenuptial agreement, tax considerations, and your overall estate planning goals.

We have a prenup. Do we still need an estate plan?

Absolutely. A prenuptial agreement and an estate plan address different issues and should work together. Your prenup might have the unintended consequence of disinheriting a spouse you love.

When should newlyweds create an estate plan?

We work with clients who are engaged – we help them build a great team of advisors, have them sign powers of attorney and health care directives and address beneficiary designation. As soon as they get married, they can sign their marital trust. earlier these conversations happen, the easier it is to avoid problems later.