Similar age couples plan for the future together. However, when someone marries a spouse of a different age, individual outlooks vary. To protect yourself, your spouse, and other loved ones, create a comprehensive financial and estate plan. For full effect, open an honest conversation with your spouse about financial and estate planning topics. This matters for age gap couples.
Views on Employment for Age Gap Couples
Because you may rely on a job to provide you and your spouse with health insurance and income, and a job can take up a large amount of your time, it is important to discuss these questions about the future of your employment.
- Are either of you currently working? If you are both working and bringing in an income, your lifestyle may change if one or both of you decide to retire or stop working in the near future.
- After both of you are retired or no longer working, what do you want to do with your time? If one of you wants to travel while the other aspires to start a business, you may conflict as to what you are going to be doing together as a couple.
Managing Age Gap Finances
Retiring or stopping your employment means losing one type of income. For many, their retirement accounts will provide a large portion of the money they will be living on during their retirement; however, this does not happen overnight, it takes advance planning. It is important that, as a married couple, you discuss the following topics to ensure your financial security:
- If you are currently working, when do you see yourself retiring? If you are planning to retire soon, it is crucial to meet with your financial planner to make sure your finances are in order and that you can afford to stop receiving a paycheck.
- Is there a period of time when both of you will be retired or not working? Depending on your current income needs, if neither of you is working, will you have enough money from other sources to support your lifestyle?
- Do you have a plan for when you are going to withdraw the required minimum distributions from your retirement accounts? If you are unsure, talk with your financial advisor. They can advise you on the best strategy given your current account balances and desires for the future.
- Is the younger spouse anticipating using the retirement funds from the older spouse for their lifetime as well? Is there enough money to do so?
Estate Planning Considerations for Couples with an Age Gap
Crafting an estate plan is the best way to guarantee that those you love are taken care of. If you do not create your own estate plan, your state’s laws will determine who gets your money and property, and how much, when you die, as well as who will make decisions for you in the event you cannot make them for yourself. As you review or begin your estate plan, the following questions will touch on some of the more crucial issues you need to consider.
- Who will serve as your trusted decisionmakers (executor or personal representative, successor trustee, agent under a financial power of attorney, and agent under a medical power of attorney)? Because of your age difference, it is prudent to name alternates to these positions in the event your first choice (usually your spouse) cannot act on your behalf. If you have children from a previous relationship, you may also want to consider if and in what order you want to name them to one of these important decision-making roles.
- Who do you want to name as your beneficiary upon your death? If that person is your spouse, do you want them to receive the inheritance outright or in trust? If you want to give an inheritance to your children, will this be immediately available upon your death or unavailable until after your surviving spouse’s death?
- Do you have children from your current marriage? Will they be treated the same as children from a previous relationship, or will they receive preferential treatment?
These are just some of the questions you and your spouse should be considering as you plan for your future. If you have any questions or are ready to take the next steps in crafting your estate plan, call us.
About Skvarna Law in Glendora & Upland, California
Skvarna Law Firm operates offices in Glendora and Upland, California. Also, we provide legal services. We cover San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes several cities. Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Pomona, La Verne, Montclair, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma.
