Legal and financial professionals have shared insights on how couples who get together and remarry at an advanced age can steer clear of bitter disputes over inheritances.
Americans 65 and older are increasingly getting remarried following the death of their spouse or a divorce,
according to research
from the National Center for Family and Marriage Research based at Bowling Green State University.
But those finding love in their golden age may need to work out how they would split their assets – including real estate and retirement accounts.
They may also have disagreements over whose adult children inherits what.
To avoid these issues, Lee Meadowcroft, of Skinner Law in Portland, Oregon,
told the New York Times
he advises couples to simply keep their bank accounts separate – though he noted that it is difficult to maintain separate accounts.
‘Keeping everything separate seems to work the best, but it’s a rare couple who can actually do that for a long time,’ Meadowcroft admitted.
Even though there are methods to safeguard finances and maintain transparency, these measures often fail in practice.
In such instances, Meadowcroft proposed that it might be preferable for senior couples to remain together without getting remarried.
‘This can become extremely chaotic and lead to numerous issues,’ he stated.
Michael Fiffik, a managing partner at Fiffik Law Group in Pittsburgh, Pennsylvania concurred, pointing out that getting married activates specific inheritance regulations for various retirement accounts.
For instance, if one partner possesses a retirement account, they might be obligated to designate the other spouse as the beneficiary.
However, if the spouse who owns the account intends to leave the asset to another person – such as a child – they would need to obtain legal permission from their new spouse to relinquish their rights to it.
For certain widows and widowers, getting married again might also result in losing their pension or Social Security benefits.
To avoid these issues, Meadowcroft recommended what one of his client couples, who were both in their 80s did and have a ceremonial marriage – but never actually obtain a marriage license.
‘They said, in the eyes of God, they’re married,’ Meadowcroft recounted.
‘The state’s purpose for marriage doesn’t have anything to do with that. It’s simply who gets your stuff when you die.’
But for those who do decide to remarry, experts recommend taking a number of precautions – including getting a prenuptial agreement, life insurance and putting assets in a trust.
Ginger Skinner, a colleague of Meadowcroft and the founder of an estate law practice in Portland, pointed out that having a prenup is crucial because it prompts discussions about what occurs if the marriage concludes due to death.
She pointed out that the conversation might uncover underlying presumptions or discrepancies between partners, despite being potentially distressing.
In the meantime, life insurance enables individuals to designate resources meant for inheritance by spouses or offspring from prior marriages.
For individuals with considerable wealth, trusts can safeguard their financial heritage.
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