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Estate planning is one of the most important financial tasks you will undertake in your lifetime.
However, according to LegalZoom, only 45% of Americans have created the documents required.
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Estate planning is especially critical if there’s a significant age gap between you and your spouse. Since your husband is 21 years older than you, the chance of you outliving him is high. In this case, it’s important to establish an estate plan before his health begins to decline.
Since your husband has $3 million in assets and plans to leave it all to you, you might assume that you’re set. However, things could become complicated if your spouse also has three grown children who are not financially stable and expect to inherit a portion of his assets as well.
The importance of proper estate planning
In a situation like yours, you need to have a solid plan. If your husband has children from a previous relationship, they may expect an inheritance. If they’re not included in his plans and he leaves behind a will, there’s a good chance they’ll contest it. That could delay the often lengthy probate process, making it even harder for you to inherit your spouse’s assets.
According to a 2023 LegalShield survey, 58% of respondents reported experiencing conflict or knowing someone who has, due to a lack of proper estate planning. That’s not a situation you want to be in.
The best thing to do in this case is to have an open conversation with everyone in the room — you, your spouse and his three children. Allow your husband to explain his decision and the logic behind it.
Read more: Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
You may need more than just a will
Many people use wills to pass along an inheritance because they’re familiar with how they work. But when a will is used to pass down an inheritance, it usually must undergo a process called probate. But probate can not only be time-consuming, but also expensive.
The average cost of probate on a national scale is 4% to 7% of an estate’s value, according to Mazurek Belden & Burke PC. For a $3 million estate, that could mean losing $120,000 to $210,000.
A better solution, therefore, may be to use a living trust and name you as the beneficiary to pass along $3 million in assets. Living trusts tend to cost more money to set up than writing a will. However, they can cost significantly less to administer, as they do not require probate.
Ethos makes it easy to complete a legally valid will online in minutes. Their service helps you document your wishes and create a will that reflects both your values and responsibilities.
You can complete your will online in under 20 minutes, with guided prompts that simplify each step of the process.
Plus, if you sign up for term coverage from Ethos Life Insurance, you can complete a legal will for free.
Signing up for coverage is a seamless online process for purchasing term life insurance, simplifying the traditionally complex and time-consuming process of buying life insurance.
Ethos aims to provide affordable, straightforward life insurance policies with no medical exams required for most applicants, ensuring peace of mind and financial protection for your family.
No matter what your husband decides, you should both sit down with an estate planning attorney and talk through your options. If your husband has specific wishes, an attorney is ultimately the best person to suggest the right tools for carrying them out.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.