Long-term planning is invariably a collaborative effort between couples of comparable ages. If you are engaged to someone much different in age, the future may look and mean something different to both of you. You must have detailed financial and estate plans to safeguard yourself, your partner, and any loved ones. Discussing financial and estate planning with your spouse and trust and estate attorney is critical for these plans to perform as envisioned.
Things to consider before drafting an estate plan
Since you and your partner may rely on a profession for health insurance and money, and because a job might consume a significant length of time, it is critical to discuss these employment-related concerns.
Is either of you now employed? If you both work and earn a living, your lifestyle may alter if any or both of you decide to retire or cease earning anytime soon.
What do you intend to do with your time when you’re both retired or no longer working?
Managing Your Money
When you retire or stop working, you lose one source of money. Many people’s retirement savings will supply a significant percentage of the money they will need to live on throughout their retirement, but this does not happen immediately; it requires years of financial planning and preparation. To maintain your financial stability, you must cover the following things as a married couple:
- When do you plan to retire if you are presently employed?
- If you want to retire soon, you must consult trust litigation lawyers to ensure that your resources are in check and that you can manage without a monthly paycheck.
- Is there a moment when you will both be retirees or discontinue work?
- Will you have sufficient money from other avenues to sustain your lifestyle when neither of you is employed, based on your present income needs?
- Do you have a strategy in place for when you will take the mandated minimum withdrawals from your retirement funds?
- Is the young partner planning to spend the elder spouse’s retirement money for the rest of their lives? Is there sufficient funding?
Consult your financial advisor if you are unsure. They can counsel you on the optimal plan based on your present account holdings and future goals.
Estate Planning Considerations
Making an estate plan is the greatest approach to ensure that those you care about are taken care of. If you do not form your own advanced directive, your state’s laws will decide who receives your money and property after you die and who makes choices for you if you cannot make them for yourself.
Who will be your authorized decision-makers (trustee or personal representative, subsequent trustee, economic power of attorney representative, and medical power of attorney agent)?
Since your age is different, you should identify substitutes for these roles in case your first choice (typically your husband) cannot operate on your behalf. If you have offspring from a prior relationship, you should consider if and however, you wish to appoint them to one of these critical decision-making positions.
Who do you wish to identify as your beneficiary in the event of your death? Do you want your partner to obtain the bequest directly or in trust if that person is your husband? If you wish to leave an annuity to your children, would it be instantly available or after your surviving spouse’s death?
Do you have any children from your previous marriage? Will they be accepted the same as prior relationship children, or will they be given special treatment?