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 )