Latest news with #remarriage
Forbes
4 days ago
- Business
- Forbes
Tips For Remarrying In Retirement: What You Need To Know
Getting remarried in retirement is a happy time, but may come with a set of financial complications. ... More (Photo by Christopher Furlong) Remarrying in retirement can be one of life's most joyful chapters, but it also comes with a few unique financial and lifestyle considerations. Whether you've found love again after loss or divorce, or you're simply entering a new phase of life with your partner, it's important to go in with eyes wide open. Here are some practical tips to help you navigate this exciting transition. Love might be blind, but the IRS sure isn't. When you remarry later in life, your tax situation, Social Security benefits, and retirement income can all change. Filing jointly might offer some tax perks, but it could also bump you into a higher bracket or impact your Medicare premiums. A good first step is to sit down with a financial planner or tax advisor who can walk you through what those changes might look like. One of the biggest mistakes retirees make when entering a second marriage is not updating their estate plan. Wills, powers of attorney, healthcare proxies, these all need to reflect your new relationship. If you have children from a previous marriage, you'll want to make sure their inheritance is still protected. This isn't just about money; it's about making sure your wishes are honored and your family is taken care of. Money can be a sensitive subject, especially if one or both partners have been through a divorce or lost a spouse. But the more transparent you are, the better. Talk about debt, savings, spending habits, and long-term goals. Do you plan to combine finances or keep things separate? Will you share expenses equally? Having these conversations up front helps prevent misunderstandings down the road. Prenuptial agreements aren't just for celebrities or the ultra-wealthy. They're practical tools that can help protect both partners and clarify expectations. Especially in retirement, when most of your wealth has already been built, a prenup can ensure that your assets are distributed according to your wishes. Think of it as part of your overall financial wellness plan. Beyond the numbers, this is about building a shared life. Are you both on the same page about where you want to live, how you'll spend your time, and what kind of lifestyle you envision? Retirement offers a lot of freedom, but it also requires compromise and communication. Whether it's travel, volunteering, or simply enjoying quiet mornings together, talk about what matters most. Remarrying in retirement is a chance to write a new chapter with someone you care about deeply. With a little planning and a lot of honest conversation, you can set yourselves up for a meaningful and secure future together. If you're unsure where to begin, a trusted financial advisor can help you navigate the journey and make confident decisions along the way.
Telegraph
31-05-2025
- Business
- Telegraph
‘We got married (again) to save £80k from inheritance tax'
When Antonia Medlicott, 49, and her husband Tim Pindar, 44, skipped off into the sunset after their dream big Spanish wedding in 2009, little did they expect to have to do it all over again 14 years later. But facing a huge inheritance tax bill, they were forced to remarry in 2023 after an admin mishap left them legally unmarried. 'We got married in Spain 16 years ago. We had all our family and everyone fly out for this big Catholic wedding,' says Medlicott, a business owner from Stroud, Gloucestershire. 'At the end of the wedding the priest, who didn't speak any English, said something to us which we didn't understand. What he'd said was, you've got 14 days to register your marriage at the town hall or it's null and void. 'A couple of months later we suddenly realised that our marriage was null and void. We just thought 'forget it, we'll leave it'.' Their Catholic wedding vows may have counted in God's eyes, but the taxman didn't see it that way. Unmarried couples who leave assets worth over £325,000 to each other when they die have to pay inheritance tax of 40pc on the amount over the allowance. They don't benefit from the spousal exemption which allows married couples or civil partners to pass unlimited assets to each other completely exempt from inheritance tax. And Rachel Reeves's plans to expand the inheritance tax net to pension wealth will cost many unmarried couples dearly. Pension savings can currently be left to an unmarried partner completely free from inheritance tax, but this exemption will end in April 2027. The Office for Budget Responsibility estimates that by 2030 almost 153,000 estates could see their inheritance tax bills increase under the new rules, according to a recent Freedom of Information request by Interactive Investor. After years of being officially 'unmarried', with two teenagers and their wealth beginning to grow, Medlicott and her husband decided to make things official. 'A couple of years ago we had a lawyer round to come and do our wills. He pointed out that if something happens to either one of us, there's a massive inheritance tax bill coming our way. So we decided we would have to just get on with it.' Medlicott estimates they would have had an £80,000 inheritance tax bill on their house alone. They also have other assets including pensions, savings, investments and a business. The surviving partner would have been forced to sell their family home to pay the bill. They had a 'bare bones' civil wedding at their local registry office – she wore a brown dress and some boots borrowed from a friend. In total, including a bottomless brunch for six local friends, it cost around £1,000. Antonia and Tim are joining the growing trend for couples marrying in midlife or beyond. Office for National Statistics data show more couples are tying the knot later in life – nearly 29,000 over-60s got married in 2022, compared to 19,000 in 2012. And with inheritance tax changes bringing pensions into the inheritance tax net, these figures are expected to rise. Claire Trott, head of advice at St James's Place, says: 'Getting married for tax purposes isn't a new concept, particularly in the world of pensions. Many defined benefit schemes have restrictions on who death benefits can be paid to, sometimes depending on when a couple marries. 'My own father married my stepmother just before his defined benefit pension came into payment, because under the scheme rules, death benefits were only payable to the spouse at the date of retirement. Had they married after that point, even after 30 years together, she wouldn't have been entitled to anything.' She adds: 'With pensions being brought into scope for inheritance tax, marriage could become an even more valuable tax planning tool. Using the spousal exemption, even if it's not the primary reason for getting married, can be highly effective.' Thinking about dying isn't an easy topic, says Medlicott. Her business, Investing Insiders, focuses on building wealth, but it still took time to sort out her own finances. 'It's always on the back burner – what happens if I die – it's a difficult one to get round to.' She adds: 'I felt a little bit resentful having to do it. I think it's ridiculous that you're forced into [getting married] on the back of being able to potentially save thousands of pounds. 'I feel it's ridiculous because marriage isn't for everyone. We've been together for 17 years, we have two children and we've been living together that whole time. How does that piece of paper make our situation any different?'
Yahoo
16-05-2025
- Entertainment
- Yahoo
Erysha Emyra supports mum Noniswara getting married again
16 May - Erysha Emyra has no qualms whatsoever with the idea of mum Noniswara remarrying, after more than a year of living a single life. The actress, whose stepfather Datuk Seri Dr Sheikh Nordin Sheikh Ahmad passed away in late 2023, said that she couldn't bear seeing her actress mother living a lonely life. "As a daughter, I will give her my blessings if she is to remarry. But it is all about fate. All I know is that mum doesn't have anyone special right now," she said. The "Cinta Untuk Sekali Lagi" star said that she knows that her mother is still saddened by the loss, and that the only thing she could do is lend her ear to her mum. Asked what kind of man that she would prefer for her mother, Erysha said, "If she is to marry, I hope it is with a man who sincerely wants to take care of her. That they can take care of each other to their old age." Noniswara and Dr Nordin were married since 2014. However, the two do not have any children together. Erysha is Noniswara's daughter from her first marriage. As for herself, Erysha, who was romantically linked to several co-stars like Hun Haqeem and Meerqeen, said that she would rather focus on her career as well as her family for the time being. "I am only 26. My career is just starting. I don't know when I will get married. Let's just wait and see," she said. (Photo Source: Erysha IG)
Daily Mail
11-05-2025
- Business
- Daily Mail
Finance expert reveals simple trick to avoid inheritance battles for divorcees who meet new partners later in life
Legal and financial experts have revealed how couples who meet and remarry later in life can avoid nasty inheritance battles. 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 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. 'Although there are ways of protecting finances and keeping things very clear, practically, those things fall apart.' In those cases, Meadowcroft suggested it may be better for older couples to simply stay together but not remarry. 'It can get so messy and it can cause so many problems,' he said. Michael Fiffik, a managing partner at Fiffik Law Group in Pittsburgh, Pennsylvania agreed - noting that marriage triggers inheritance rules for certain retirement assets. If one spouse has a retirement account, for example, they may be required to name the other as a beneficiary. But if the spouse with the account wanted to bequeath the asset to someone else - say a child - he or she would have to get their new spouse to legally cede their right to it. For some widows and widowers, remarriage may also mean forfeiting 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. 'Having a prenup is important because it forces a conversation of what happens if this marriage ends because of death,' Ginger Skinner, a colleague of Meadowcroft's who works as a founder of an estate law practice in Portland, explained. She noted that the discussion in itself can bring to light assumptions or differences between spouses, even if it is uncomfortable. Life insurance, meanwhile, allows people to allocate assets intended to be inherited by spouses or children from previous relationships. And for those who have significant assets, trusts can protect their financial legacy.
New York Times
10-05-2025
- Business
- New York Times
To Have and to Hold, and to Manage the Money
Marriage inevitably involves financial compromises both small and large. Joint or individual checking accounts? How much is too much to spend on a car? Name-brand or store-brand groceries? When a couple remarries late in life, the stakes get higher. How should the expenses for those bucket-list retirement trips be divided? Whose name goes on the deed to the new condo? Who inherits the house or stock portfolio: the surviving spouse or that person's children from a prior marriage? Many newlywed retirees find that the answers to these questions evolve. For a retired director of a nonprofit and a retired I.T. professional in upstate New York, that meant revisiting their expectations of who would pay for what. 'We just kind of talked about what we were both bringing to the marriage financially,' said Elaina Clapper, a retired director for an agency supporting domestic violence victims. Ms. Clapper, 76, said she had been divorced for roughly 40 years before marrying David Clapper in 2018. 'For a while, David was paying me a certain amount of money each month' toward household expenses, Ms. Clapper said. But in time, the couple, who live in Watertown, N.Y., decided it would be easier for each partner to be responsible for certain monthly expenses. 'There are certain bills she pays. There are certain bills that I pay,' said Mr. Clapper, 67. 'We adjust it in a way that we both feel is equitable.' As life spans increase and the stigma around divorce fades, Americans 65 and older are bucking a trend by getting remarried at an increasing frequency, according to research from the National Center for Family and Marriage Research at Bowling Green State University. The rate of people in that age group remarrying after a death or divorce edged higher from 1990 to 2022, rising to 5.1 from 4.6 people per thousand. That's a marked contrast to the overall population, where the rate of remarriage plunged by roughly half. It's a trend that forces couples to consider potentially complicated scenarios regarding how, or if, to merge their finances. 'The later in life you come to a relationship, depending on the complexity of your prior life, the more complicated merging tends to be,' said Jean Chatzky, founder of HerMoney, a multimedia platform for women's financial empowerment. Separate or together? Older couples are more likely to have retirement accounts, real estate and other assets that could be tricky to mingle and even more difficult to unmingle in the future. One or both partners might have children from a previous relationship, complicating questions of who inherits what. The easiest strategy to prevent unintended entanglement is surprisingly hard to practice, according to one expert. Lee Meadowcroft of Skinner Law in Portland, Ore., said he advised clients in this situation to keep things like bank accounts separate, particularly if they want to preserve their assets for their own heirs, adult children in particular. 'Keeping everything very separate seems to work the best, but it's a rare couple who can actually do that for a long time,' he said. 'Although there are ways of protecting finances and keeping things very clear, practically, those things usually fall apart.' Minor discrepancies in money management are fairly common among people who remarry in their later years, said Scott Rick, an associate professor of marketing at the University of Michigan who studies how romantic partners navigate these differences. 'I think you have to be more understanding that their spending habits might seem weird to you, and they might have hobbies or quirks they might have developed over the decades before they met you,' Dr. Rick said. 'You tend to get people set in their ways quite a bit more,' said Shaun Williams, a partner at Paragon Capital Management in Denver. 'There has to be a long leash of understanding that they've been doing it this way for 40-plus years. You're not going to change them,' he said. While a less-formal approach works for many couples, it can have potentially serious consequences for widows, one retirement expert warns. Cindy Hounsell, president of the nonprofit Women's Institute for a Secure Retirement, said that women often come into second marriages with less accumulated wealth than their male partners do. This is especially the case for older women whose generations were limited in terms of career advancement and earnings opportunity, she said. Ms. Hounsell said a scenario she encountered frequently was that, although these women contribute — sometimes significantly — to housing expenses after a second marriage, widowhood can be financially perilous for those who have no legal claim to a home inherited by her stepchildren. For example, some spouses contributed to a purchase but their name may not be on the deed. 'The thing we often hear in our workshops is, 'My mother put down part of the down payment but can't afford to live there,'' she said. 'The situation is their mother won't have a place to live.' And if heirs sell the home, that spouse has no legal claim to the proceeds. Prenups, trusts — and trust Outcomes like the ones Ms. Hounsell warns about are one reason estate-planning pros are big proponents of tools like prenuptial agreements, life insurance and trusts. 'Having a prenup is important because it forces a conversation of what happens if this marriage ends because of death, and who gets what,' said Ginger Skinner, founder of an estate law practice in Portland, Ore., and a colleague of Mr. Meadowcroft's. A discussion about a prenuptial agreement, while perhaps uncomfortable, can bring to light assumptions or unspoken differences between spouses, said Ms. Skinner. For instance, if both partners have children from previous relationships, they might have different ideas about who is entitled to what after each of them dies. 'Parents can have split loyalties in between a new spouse and their kids,' she said. Life insurance is one instrument people use to allocate assets intended to be inherited by spouses or children from previous relationships, while significant wealth disparities can prompt couples to contribute proportionately toward household costs based on their means rather than splitting expenses down the middle. The calculations can get complex. Mr. Williams of Paragon Capital Management said he had one client, significantly wealthier than her second husband, for whom he developed a formula to calculate his ownership share of her house. If he outlives her, and the house is sold, he will receive proceeds from the sale based on his financial contributions to maintenance and upkeep over the years, Mr. Williams said. For people with significant assets, trusts can protect a financial legacy if the new spouse has large health care costs not covered by Medicare, such as residence in a nursing home or memory-care facility. Ms. Clapper said she had her will revised shortly after her marriage for this reason. She said she wanted to make sure that his contributions to their joint household expenses would be recognized if she dies first. 'Everything pretty much goes to my sons and grandsons, but there's also a clause in it that provides something for David,' she said. Mr. Clapper said he hadn't expected to be included as a beneficiary in his wife's will, but he was grateful. 'I appreciated that she wanted to include me in the mix,' he said. Planners say that while these kinds of legal structures may seem cold or transactional, they create a financial cushion that can protect the surviving spouse if he or she has to vacate their home when the decedent's heirs sell it. Even so, estate and retirement planning pros say friction can arise when real estate is involved. 'Homes, residences are difficult. Conceptually, they're easy,' said Michael Fiffik, managing partner at Fiffik Law Group in Pittsburgh. But the emotional attachment people feel toward home — especially longtime family homes — can make estate planning fraught. Mr. Meadowcroft said conflicts can arise when a homeowner gives their spouse the legal right to live in a home they owned until after the spouse's death. 'When there's a house involved and the new spouse is living in the house, the kids are sometimes just waiting for the other one to die.' Should you remarry? Some older couples who run the numbers might find that the best financial decision is not getting married at all, Mr. Meadowcroft said. 'It can get so messy, and it can cause so many problems,' he said. For instance, marriage triggers inheritance rules around certain retirement assets. If one spouse has such an account, Mr. Fiffik said, he or she may be required to name the other as a beneficiary. And if a person with one of these accounts wanted to bequeath that asset to someone else, such as a child, for instance, he or she would have to get their new spouse to legally cede their right to it. 'Retirement accounts are something that always require extra attention,' he said. For some widows and widowers, remarriage may mean forfeiting certain pension or Social Security benefits. 'If someone is getting a pension, they may not want to remarry, because that could go away,' Mr. Williams said. Mr. Meadowcroft recalled one client couple, both in their 80s, who chose to remarry. They decided to have a religious ceremony, but kept their respective estates separate by never getting a marriage license. 'They said, in the eyes of God, they're married,' Mr. Meadowcroft said. 'The state's purpose for marriage doesn't have anything to do with that. It's simply who gets your stuff when you die.'
