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Whether you're a first-time newlywed or you've re-enlisted, there are a number of important document changes or updates you must make when you marry.
Some of these changes involve designation of your beloved as a beneficiary. In some cases, third parties may have to sign off on the changes to make way for your significant other. It's best to take care of these matters as soon after the nuptials as possible.
Follow this quick checklist to ensure that you've taken care of all those important documents, so you or your spouse don't find out later that your financial and personal affairs aren't as you had thought. By looking at the documents that form the basis of your past financial life, you are immediately led to the things that need changing.
Pay attention to the following categories:
1. Government entitlements such as Social Security.
Visit or call the local office to change forms that designate death-benefit beneficiaries. See who is listed as next of kin on all forms, including motor-vehicle registration.
2. Business relationships.
If you have an interest in a family business or one you started with a partner, now is the time to review the partnership or shareholder agreement. What provisions have been made if you want to sell, if you cannot work, if you want to share duties with your mate or if you die? In some instances shared responsibility and ownership is quite possible; in others it's out of the question. But in every case, troubles occur down the line when no thought is given to transitions at the outset.
Since nuptial agreements can be made even after a marriage takes place, dealing with business interests can lead to agreements between your partners and/or you and your spouse. If you'd rather avoid the hassle, just listen to some of the horror stories from colleagues in your field. Deal with it now rather than later.
3. Insurance policies, including the disability policy provided at work.
It's easy to keep track of your life insurance, but check out free insurance that may come with a credit card or club membership.
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4. Benefits you receive from any organizations, such as trade clubs, travel groups or automotive clubs.
Often these memberships include multiple benefits, from travel discounts to auto insurance. See which of these can be extended to your spouse.
5. Bank and brokerage statements.
Check the titling of all accounts. They will supersede your will if there is a conflict.
6. Wills, trusts and powers of attorney.
They are probably outdated. If this is your first marriage, they may not exist at all. Make this a catalyst for, at least, a simple will and power of attorney. You may be the beneficiary of your parents' will or life insurance policy, or named by them in a deed. If you were unmarried when they created these bequests, your siblings are likely to inherit in "your place and stead," should you meet an untimely demise.
It's important to diplomatically remind your parents or other benefactors that your new spouse is your preference, should the unthinkable happen. Remember though, it's still their choice. Speak to them again in a year if they seem reluctant to name your sweetheart as your substitute beneficiary directly after the marriage.
7. Health-care proxies and other nonmonetary designations.
Who is listed as the emergency contact at your health club, office or school? Check these for your own safety and your family's convenience.
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8. Deeds and other real-estate documents.
If you are part owner of the family summer home with your parents or siblings, this is a perfect time to discuss third-party designations.
9. Contracts.
Are you in a contract to receive or pay money, or in a business deal of any kind? If so, read the paragraph that relates to the rights and responsibilities of your heirs. I guarantee it's there, but you skipped over it because it had no meaning at the time.
10. Pensions, IRAs, annuities and other retirement accounts.
Treat these with the greatest care. Check out who is the beneficiary, and see your accountant to understand the ramifications of a change. Do this early in your marriage, and the information you get will help you make pension decisions throughout your work and married life.
Once you have identified the areas that you must address, here are some practical ways to take care of things with dispatch:
- Involve your spouse. Changing beneficiaries on health, veterans and insurance benefits will take time and poring through some paperwork. By sharing the load with your spouse, you accomplish three things: First, you prove your loyalty. Second, you inform your spouse of his or her rights so that none of your entitlement goes missing. Third, you engage your spouse in a dialogue about which of his or her documents must be changed to name you as beneficiary instead of parents, former spouses or others.
- Deal with conflicts and disagreements. In a second marriage, there may be competition with children of the first family. The renaming of beneficiaries brings it out in the open in a constructive way, so you can resolve the problem.
None of these issues is necessarily fun, but they're necessary. You can avoid later conflicts and unwelcome surprises by working through these issues early in your marriage.
Adriane G. Berg is a speaker, author and lawyer specializing in personal finance.
Updated Nov. 6, 2007
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