In an article for DemoDirt.com, Altman & Associates founder, Gary Altman explains why Boomers should do their due diligence prior to getting remarried.
"As a Boomer and a romantic, I believe that marriage (even the second time around) is a wonderful thing. That said, the attorney and the realist in me knows that sometimes financial and estate issues can get in the way. Therefore, there are several things to consider when remarrying," says Altman.
Altman’s Top Points to Consider When Remarrying:
- Children from a first marriage
- How to care for them financially while providing for new spouse.
- How to leave assets fairly between children from first marriage and new spouse.
- Pre-marital agreements
- Consider signing to protect income, as well as children's inheritance rights.
- Living arrangements
- If life in one spouse's house, how to insure that surviving spouse is not kicked out by deceased spouse's family.
- If one spouse goes into nursing home, then both spouses' assets must be used.
- Estate Taxes
- It can be easy to defer estate taxes when married in which cases the unlimited marital deduction may be used.
- Pensions/Social Security
- If one or both spouses are getting a pension, then new spouse may be entitled to survivor pension, same with social security.
- ERISA Plans / IRA
- May need/want waiver of Employee Retirement Income Security Act (ERISA) plans which has to be done after marriage. The same goes for IRAs in some states.