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)