Considering a Senior Marriage? 4 Financial Considerations
Wednesday, January 9, 2019, 6:00 AM | Leave Comment
When you are young, marriage might not have as many financial considerations, given that you likely don’t have much money to begin with.
However, in senior marriages, a lifetime of wealth in various forms can make financial arrangements more convoluted.
If you are considering a senior marriage, here are four financial considerations you need to think about.
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Estate Planning
When you reach a certain age, you start to seriously ponder what should become of your estate when you pass away. It is not something anyone wants to think about, but it’s an important consideration to prevent legal issues and hurt feelings. The details are entirely up to the individuals involved and their families.
For example, parts of estates are often left to the surviving spouse, children, and grandchildren. There may be other people you wish to include, as well. It is wise to involve a lawyer in estate planning to ensure all legal angles are covered. Be sure that you and your potential spouse discuss estate planning before tying the knot.
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Long-Term Care
Everyone hopes it will never happen to them, but when you get to an advanced age, the possibility of needing long-term care is very real. Money should be considered when planning for personal care, whether that is in an assisted living facility or takes the form of at-home care.
Any chronic medical issues that have already been diagnosed should be planned for financially, as well. Marriage is a commitment to another person, even when that person’s health fails. Illness and injury become more likely when you are older, so make sure you discuss the topic of long-term care with your partner.
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Tax Impact
Marriage comes with its own set of tax benefits and responsibilities. In general, married couples enjoy tax benefits that allow them to keep more of their money to be used for other purposes. Other benefits include social security and Medicare arrangements.
Spouses can also generally inherit wealth when their partner passes away without being charged the estate tax. Be sure to discuss tax issues with your partner. For instance, take into consideration your unique circumstances before choosing to file a joint tax return.
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Prenuptial Agreement
In a marriage where two established people bring various assets into the union, drawing up a prenuptial agreement can be a wise decision. A prenuptial agreement is where both partners determine ownership of assets in case the marriage ends in failure.
These agreements list both the property and debts each party is bringing into the marriage, while specifying the division of assets obtained while married. They can protect one spouse from the other’s debts, as well as determine what assets are passed to children from previous marriages.
Seniors, especially if they have already suffered the death of a spouse, often experience loneliness, and can do better once they have a companion in their lives. Finances are just one factor to consider during bonding. With the right planning, you can live many happy years together.
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