Long Term Care

Marrying After 50? Get LTC Insurance & Consider Financial Issues

November 4th, 2015
Author:
Marrying After 50? Get LTC Insurance & Consider Financial Issues

While many studies still show many couples decide against marriage after age 50, many still do. When you legally get married many financial issues must be considered. So while Lennon and McCartney sung, “All You Need Is Love”, the reality is you need to at least consider more than just love.

Issues like Long Term Health Care, your assets and estate and impact on your children, real estate and social security and other items must be considered before you say, “I do”.

The concern about Long Term Health Care may be the number one concern since so many adults over 50 will need at some point help with activities of daily living or supervision due to a memory issue. Many people will think this won’t happen to them or will only happen when they are much older. They would be wrong on both counts. Plus, health insurance and later, Medicare (and Medicare Supplements) will not pay for a majority of these costs.

In many states spouses are responsible for each other's medical and Long Term Care bills. Many adults over 50 will decide to not get married and just live together for this reason – assuming they are aware.

Staying unmarried lets you and your partner qualify individually for Medicaid, the medical welfare program, without draining the other person’s assets. However, you still must ‘spend-down’ assets to qualify. As a single, in most states this means spending down to $2000. If either partner has any savings and investments this makes no sense.

So if you are getting married you should consider purchasing Long Term Care Insurance assuming you both don’t have a policy in place already. If you decide to cohabitate having a policy will still protect that person’s assets and reduce the burden on the other partner and the person’s adult children and their families.

Generally, Long Term Care Insurance is very affordable if purchased when you are younger and more healthy.

“Nearly 40 percent of buyers were age 54 or younger, compared to 29 percent who purchased in 2012,” says Jesse Slome who heads up the American Association for Long Term Care Insurance (AALTCI). The AALTCI is a national consumer advocacy group.

“Buying younger makes sense because premiums are less expensive and several leading insurers now offer some very attractive options that allow you to increase coverage in future years even if your health has changed,” said Slome.

Some companies also offer shared benefits for spouses or partners which may be attractive if you and your new spouse are both looking for coverage.

Jane Bryant Quinn, author and personal financial expert says that some protections are still available even of you don’t get married.

“A "living together" agreement, legally signed and notarized, provides for the division of property if you break up. A will can provide a partner with financial support. You can designate your partner as your health care advocate, if that's your choice,” she said.

Your estate plan is impacted directly when you get remarried. Even if your will leaves everything to children and grandchildren, in most states spouses are automatically entitled to a share of your estate -- usually one-third to one-half.

If you don't want to leave a third or more of your assets to your new partner, get a prenuptial agreement. If you do want to leave something to your spouse and ensure your heirs receive their inheritance, a trust may be the best option. Consult an attorney for details.

If you were never married this would be less a concern but could be a concern for your new partner if they have had children in a previous marriage.

Real Estate is also an issue. If you're planning on living in a house one or the other owns you then need to think about what will happen to the house when the owner dies.

If, for example, you both decide to live in your home, but you want your kids to inherit the house after you die, putting the house in both names is not an option. However, you may also not want your heirs to evict them once you die. One solution is for you to give your surviving spouse a life estate which gives them the right to live in your property during their lifetime. Upon death, the house will pass to heirs.

Remarriage can also affect the benefits of many divorced or widowed seniors (especially women) who receive Social Security from their former spouses. For instance, getting remarried stops divorced spouse's benefits. And getting remarried before age 60 (50 if you are disabled) will cause widows and widowers to lose the right to survivors benefits from their former spouse. Remarrying at 60 or older, however, does not affect survivors benefit.

If love is in the air you must consider the impact it will have on the rest of life. Take these items into consideration and the advance planning will help love live on.