When it comes time to remarry later in life there are some very important financial things you want to consider before you tie the knot. Things like your assets, your home, retirement planning and of course how that will impact your children. Here are some helpful financial tips to use if you are considering on remarrying.
Talk about each other’s financial situation
Getting married at any age can greatly affect your financial situation. Sitting down and discussing each other’s present financial situation and future goals can let each party know exactly where they stand. This is a good step to take before going to an estate planner so there are no surprises as you talk with the planner.
Talk with an estate planner
An estate planner or financial advisor can help you legally set up who is going to get what after one of you pass. Have a prenuptial agreement may also be in order depending on your situation.
Talk with your children
If you have children you should tell them you plan on remarrying. Putting everything on the table with your children can help eliminate any confusion down the road when you pass away. This is a great time to discuss your plans that you made with an estate planner.
Social Security benefits could be affected
If anyone is changing their name it is very important you contact the Social Security office as soon as possible to make sure earnings are properly reported. If you remarry after full retirement age and you Social Security benefit is less than half of your new spouse’s, you can receive the Social Security benefit on your record plus an additional amount to bring you up to half of your new spouse’s Social Security benefit. This usually happens a year into the marriage.
Updating Beneficiary information
There are many accounts that will need to be updated. A financial planner can help you keep track of all the records you will need to update. It is crucial to make sure that all accounts are updated with the proper information. If an ex-wife or ex-husband remains listed on a pension plan once you pass that ex will collect that pension no matter what a will says. Take the extra time to make sure EVERY pension plan, 401(k), and annuity plan are updated with the correct beneficiary.
What about your home?
One of the most important things you will have to decide if you both own a home is where you will live. Who is going to sell their home? Once you determine whose home you are going to live in, another thing to consider is what will happen to the home if someone passes away.
What to do about caregivers?
Another important item that needs to be established with a second marriage is medical care, and long-term care insurance. You want to make sure that your spouse is taken care of for the rest of their life if you should die first. One of the best options for couples is a qualified terminable interest property trust, or a QTIP. What a QTIP allows you to do is to assign all or some of your assets to your spouse after you pass. Your spouse can then use that for anything they need but your spouse will not have the right to give it to someone else as part of their estate.
If you are considering remarrying and are unsure if you both have enough money to get you through retirement a reverse mortgage could be the answer. What is a reverse mortgage? A reverse mortgage eliminates your current mortgage(if you have one) and if you have any additional equity you can use that tax-free cash for anything you want. Currently there are no income or credit requirements for a reverse mortgage and you are never required to make a payment as long as you live in your home. You can have the peace of mind knowing you can live in your home for the rest of your life.
Kristen Curzytek is a writer for the One Reverse Mortgage blog. One Reverse Mortgage is the largest retail reverse mortgage lender in America. Check out our reverse mortgage calculator to see how much tax-free cash you can qualify for. Or give us a call at (800)401-8114 to talk to one of our licensed professionals. They can discuss your financial situation with you and determine if a reverse mortgage makes sense for you and your financial goals.