Seniors can still remarry. That’s a good way to establish a lasting partnership and company in their later lives.
But later-in-life marriage has multiple considerations. Matters like assets, finances, and retirement should be discussed and met first.
These are the following things that two people should talk about before entering the married life (again). These discussions should help them reach the ideal financial status that would make their togetherness fruitful and free from any uncertainties and difficulties.
Settle Financial Matters
In a perfect world, newlyweds would have no trouble combining their finances and would never argue over money. But, in reality, putting your finances together with someone else’s can be difficult and cause tension. While it’s not easy, it is possible to pull it off.
Fortunately, older people have better money management compared to younger individuals. Over the years, they have already accumulated assets that could be useful in later marriages. Of course, in some situations, this could cause some deterrence. For instance, if one of them is a spender and the other one is frugal, merging finances can be a complex issue.
If either of them has children from a previous marriage, it is another matter up for discussion. Even if the children are already old, things like inheritance are not that easy to settle.
Update Tax Filing Information
Tax filing is one of the most stressful things seniors have to deal with. They have more complicated tax situations than most, and they’re often confused about the changes that getting married entails. They may also have a hard time understanding the tax code since it’s particularly complicated for people with high incomes. Seniors applying for tax-free benefits or tax credits may also have to fill out other forms if they’re divorced or widowed.
The Internal Revenue Service (IRS) recommends to the newlyweds that their names listed on their tax returns should match with the names listed on the Social Security Administration. If they fail to do this, tax refunds could be a little more problematic.
Decide if you want to file as “married filing separately” or do a joint tax return. Furthermore, if there is a complication in your taxes from your previous relationship, better sort it out first before remarrying.
Estate planning is a topic that may come to mind when people start to think about their golden years, but it can be helpful for anyone who is anticipating a major life change, such as marrying their partner. This is because the simple act of getting hitched—especially if you own a home—can have significant financial consequences.
Estate planning enables you to organize the existing properties that you and your partner have. In this way, you will be able to meet the financial needs of your family after your death. This particular planning is essential if you have children from previous marriages. After all, it will secure the properties that are rightfully theirs due to legal inheritance.
You have to make sure that you have updated your powers of attorney, healthcare proxies, and other legal forms of representation. You may also want to change your beneficiaries for the following properties and assetS:
- Life insurance policies
- Investment funds
- Retirement accounts
Keep in mind that these changes should be discussed with a lawyer before the marriage takes place. The majority of the state laws have no recognition over postnuptial agreements.
Review Medicaid Qualifications
Many seniors are eligible for Medicaid and don’t even realize it. This is an excellent resource for seniors who want to get married but do not want to lose their medical benefits.
However, keep in mind that marriage can influence the benefits that a person can get from Medicaid. This particular program is designed to anchor household income. If you are going to marry someone with a higher income, you will lose your qualifications to this healthcare benefit. It would be better if you can review your state policies when it comes to Medicaid and see how marriage can impact it.
Update Information With Social Security Administration
Newlywed seniors should go to the Social Security Administration. After all, the changes in their names could affect their contributions. Failing to do so will have a negative effect on the report of their earnings.
For instance, if the marriage took place after the full retirement age, this could get you a chance to get a higher pension. This is true if the pension you receive is lower than your new spouse. In this context, you can get your Social Security benefits and additional amount from the spouse’ pension.