Coordinating Estate Plans for Married Couples
Posted by D’Marie Kleeman on May 08, 2025
When it comes to estate planning, many married couples assume that naming each other in their wills or designating each other as beneficiaries is enough. However, failing to properly coordinate your estate plans can lead to unintended consequences such as conflicting provisions, unexpected tax implications, or assets passing in ways that don't align with your shared wishes. Coordinated estate planning ensures that both spouses' documents and strategies work together harmoniously, protecting your legacies and the financial well-being of your loved ones.
Enhancing Tax Efficiency
One of the primary benefits of coordinating estate plans is tax efficiency. By working together, spouses can take full advantage of the marital deduction and applicable gift and estate tax exemptions, minimizing the overall tax burden on both estates. This becomes especially important in blended families or situations with complex assets like business interests or multiple properties.
Streamlining Estate Administration
Coordinated planning also helps streamline the administration of the estate. If one spouse becomes incapacitated or passes away, a well-integrated plan can reduce the administrative burden on the surviving spouse, avoid disputes, and accelerate the transfer of assets. It allows spouses to make joint decisions about health care directives, powers of attorney, and guardianship of minor children, ensuring that both wishes are respected and consistently documented.
Adhering to State Laws
State law generally governs estate matters, determining if property is community property, separate property, or tenancy by the entirety. For example, in California, half of what one owns is considered the spouse's property, though there are exceptions.
Proactive Planning
By proactively coordinating their estate plans, married spouses can avoid pitfalls and maximize the benefits of thoughtful planning, strengthening their financial security and shared legacy.
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D’Marie is a tax principal with experience in all areas of U.S. Federal and New York State taxation. While specializing in performing tax services for individuals, trusts, and estates, she also provides tax services to commercial businesses, real estate-related businesses, privately held businesses, and private foundations.