Marriage in Your Golden Years (Part 3 in a 3 Part Series)

Part 3: We Made Our Decision and We’re NOT Getting Married. Now What?

So you have considered the options and you have decided not to get married. This doesn’t mean you love your partner any less, but there are some provisions to make in the eyes of the law. Just because you’re not getting married doesn’t mean you can skip a visit to the estate planning attorney. In fact, it is essential for unmarried couples to see an estate planning attorney. With good planning unmarried couples can receive many of the same benefits as married couples and avoid stressful situations.

Health Care Decision Making- If you are an unmarried couple, you do not have any right to make decisions regarding your partner’s health care. If your partner ends up in the hospital, the hospital is not obligated to release any information to you regarding their health, or to even let you into the hospital room. Proper planning can eliminate this stressful situation. An attorney can create a Power of Attorney for Health Care for you and your partner, thereby giving you health care decision making rights. You can also sign a HIPAA medical release (Health Insurance Portability and Accountability Act) giving you access to your partner’s medical information.

Property- If your partner becomes incapacitated the court will assign a guardian to make financial decisions. You won’t automatically be given the right to make financial decisions for your partner. A Durable Power of Attorney for Property will give you that power and eliminate the need for a public court date to determine a guardian.

Wills and Trusts- Make sure you have a will or trust listing your partner as a beneficiary to your estate. Whereas married couples will automatically inherit a share of the estate from one another, an unmarried partner will have no right in the eyes of the court unless specifically noted. Also, as with any estate plan, make sure your family is aware of the terms of your wills or trusts.

Taxes and Gifts- Married couples can leave each other as much as they want without paying an estate tax. On the other hand, an unmarried couple cannot. Make sure you take time to look at the tax consequences of gifts when setting up your wills and trusts.

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Make sure you keep these important documents close at hand. Keep the original copies in a safe place, and have extra copies somewhere you can get to them easily. We recommend keeping the originals in a safe or lock box, and giving copies to close family members as well as your doctors’ offices. Keep an original somewhere you can quickly access in case of unexpected situations.

With proper planning, you and your partner can share the rest of your lives together without the unwanted consequences a marriage may create. Make sure you see an estate planning attorney to help draw up the above important documents which will allow you protection as a couple.

I work hard to ensure that my clients can live the lives they want knowing that their assets and healthcare decisions will be taken care of in the way they want. Estate planning can provide peace of mind now, and later down the road.

Unanswered questions from our series? Check out the information center http://handslaw.com/Page/information_center on our website.

To schedule a consultation with Mr. Hands call the office at 630-574-0123.

Marriage in Your Golden Years (Part 2 in a 3 Part Series)

Part 2: We Made Our Decision and we ARE Getting Married- Now What?

So, you have considered the factors and you and your new partner have decided to get married. Congratulations! Finding love later in life can be exciting, but can require a little extra planning.

BEFORE the wedding make sure that you and your spouse understand each other’s financial situations. While a younger couple may enter into a union planning on building a financial future together, you and your future spouse have already spent years building your financial estates separately. You don’t want years of work to be compromised. With proper foresight you can gain the marriage you want but protect your assets.

Be aware that whatever estate planning you’ve done to this point is going to be affected by your future marriage- make sure you talk your decision over with your estate planning attorney and your family. Be clear about your wishes so that your attorney can properly draw up your documents, and so that there are no surprises. Inheritance issues can be sticky to resolve, and they’re never pretty.

Take, for example, the case of Joe and JoAnne. Both had children from a previous marriage. Joe’s children believed that his estate would pass on to them at his death. However, the way the trust was written, when Joe died the whole estate instead passed to Jo Anne. When she died a few years later the estate therefore passed to Jo Anne’s children.

The result was that Joe’s children sued his attorney, claiming that their father meant for his estate to pass to them, but the judge could not find reasonable proof that Joe’s intent was for his money to pass to them, and so Joe’s children received no inheritance from their father. Being clear with your attorney and your family can help alleviate these problems. Make sure your wishes are in writing, and be sure you understand the agreement before signing it.

PRENUPTIAL AGREEMENTS: Your estate planning attorney can work with you to prepare a prenuptial agreement. Your future spouse will need their own attorney. A prenuptial agreement lays out in advance what will happen to the couple’s property in case of death or divorce. A properly executed prenuptial agreement commonly delineates each spouse’s right to the other spouse’s property on death or divorce. The major benefit of a prenuptial agreement is that it keeps your assets separate. You can make a lot of provisions in a prenuptial agreement- including timeframes.

There are basic requirements for a court to uphold a prenuptial agreement- as with any estate planning document make sure you have an attorney draw it up to assure it’s an appropriate legal document. It’s important that the agreement be prepared and executed prior to the marriage.

OTHER CONSIDERATIONS: In addition, make sure you discuss what happens to your home and any retirement assets, 401K’s, and other liquid assets with your spouse and attorney. Make sure you account for all your assets.

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Be sure you choose an estate planning attorney who understands your desires. Also, ensure that your attorney isn’t just plugging you in to a pre-existing mold. Each couple has a unique relationship, and likewise situation, and it’s important your attorney consider you as such.

When my clients come in I work hard to ensure that I develop an estate plan that fits their needs and desires. Our estate plans allow for many foreseeable and unforeseeable situations, and deal with each client’s unique situation.

Stay tuned for the next  entry- Part 3 in the 3 Part Series:

We made our decision and we AREN’T getting married- now what?

(To schedule a consultation with Mr. Hands call the office at 630-574-0123)

Marriage in Your Golden Years (Part 1 in a 3 Part Series)

Part 1: To Re-Marry, Or Not?

I see a lot of couples in my office who are considering marrying or remarrying. While all prospective couples have many factors to consider, for couples considering marriage in their later years there will be different, and possibly unexpected, factors to consider. Especially if you have a large estate, or if you have children from a previous marriage, there may be unexpected outcomes from a marriage in your later years that you deserve to know about before signing the marriage certificate.

Social Security- There are many possible effects of marriage on social security benefits.  If you were receiving benefits from a previous spouse, these benefits will generally cease once you remarry.  If both you and your potential spouse are receiving social security benefits there may be an increase on your taxes. Most importantly, social security benefits will begin to take into account not just you and your children, but also your spouse and their children. This may affect you positively or negatively depending on your situation.

The Family Home- Hypothetically, say your potential spouse moves into a property you already previously owned: pretend it’s the house your children from your past marriage grew up in. You may still want to ensure that the property is transferred to your children after your death. However, if your potential spouse survives you, you don’t want to your spouse to be evicted by your children. There are various ways to get around these problems with the appropriate planning, but planning is needed to assure it will all go smoothly.

College Financial Aid- If you have a college-aged child, you will want to check with your child’s school before remarrying. A new spouse could affect the financial aid your child receives depending on how your income is calculated.

Survivor’s Annuities- Any annuities you or your possible spouse are receiving may cease with a new marriage contract. For example, widows and widowers of military may lose their annuities if they remarry before a certain age. All of these factors need to be considered as you make your decision. 

Long Term Care- No amount of trusts or premarital agreements can protect a spouse from being responsible for the cost of long term care if you or your potential spouse should become incapacitated or need expensive health care. Moreover, your eligibility for Medicaid may be affected by a new marriage in your later years.

Personal Values- I often hear that older couples want to get married so they can set a good example for their grandchildren. Other couples may feel obligated to remarry if they are involved with their church or religious community. Some couples may feel that their own personal values would be compromised if they did not remarry but lived as a married couple. On the other hand, couples may have none of these concerns, but be worried about the effect on their previous estate, or the concerns of their children.

Ultimately, it’s you and your partner’s decision to marry. However, whatever your personal beliefs may be, it’s important to be informed and make a knowledgeable decision to avoid any ugly surprises for you or your family later down the road. An informed decision is always the best decision.

I help clients consider all their options when making a choice about proceeding with a new marriage. Every person’s situation is unique, and you deserve to know all the possible situations before deciding to marry or not.

  

Stay tuned for our next entry- Part 2 in the 3 Part Series:

We Made Our Decision and we ARE Getting Married- Now What?

(To schedule a consultation  with Mr. Hands call the Oak Brook office at 630-574-0123)