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More adults are remarrying in later life than ever, according to the Office of National Statistics, and it could be a smart move as much as it is a romantic one.
After all, a study from 2007 found married people are more likely to live longer (men especially), and also have better physical and mental health.
But, while getting married in later life certainly brings many benefits, it can also bring a host of financial challenges.
This is especially likely if you have been married before (which accounts for most marriages amongst over 50s) or have children from previous relationships.
Clare Moffat, Pensions and Legal Expert at Royal London says: “Tying the knot later in life is exciting and can be a fresh start, but it’s also normally a stage when you have the most assets. Taking legal and financial advice to avoid financial pitfalls can be crucial.”
You'll need to think about your wills, pensions and estate planning - but the good news is many of the problems are avoidable, if you know what to do.
Megan Rimmer, Chartered Financial Planner at Quilter Cheviot, says it’s vital to write a new will as soon as you get married.
“Many people are unaware that when they tie the knot that a previous will is likely to become null and void. This means that if you pass away without making a new will, the law will decide how your assets are distributed, which may not reflect your wishes or the needs of your loved ones.”
These are referred to as the laws of intestacy and they can cause problems for people marrying in later life.
Moffat adds: “These vary in different parts of the UK, but the spouse is prioritised and in smaller estates, children could end up with nothing. There is a calculator which allows you to check the amounts depending on where you live and the family that you have.
“It's also important to know that if you live in Scotland, you can never disinherit your spouse or children, even if you have a will in place.”
If you are engaged but haven’t got married yet, it’s possible to write a will ‘in contemplation of marriage’ before your wedding so you can protect the interests of your partner now and avoid having to do it all again after the ceremony.
“This way you can ensure that your estate is divided according to your preferences and that your spouse and other beneficiaries are adequately provided for,” says Rimmer.
If you die before your spouse, you will want to be confident that you won’t be leaving them with nothing.
You’ll want to know that they can stay in the marital home and have enough money to live comfortably; but you may, understandably, be concerned about what happens to your wealth once they die.
Your money could end up being passed to your new spouse’s family, for example, rather than your own children or grandchildren.
Rimmer says: “This can be a delicate balancing act, as you may wish to provide for your spouse as well as other loved ones.
“In this case, we recommend seeking professional advice from both a solicitor and a financial planner to help get your affairs in order. One popular option for people entering marriage with children is to set up a trust.”
A life interest trust, for example, could give your spouse the right to an income for the rest of their life, at which point the remaining capital would be passed to your children.
“This avoids the entire estate passing to a surviving spouse for them to pass on at their discretion, which may or may not include your children,” Rimmer explains.
You might not be inviting them to the wedding, but you do need to let your pension providers know that you’ve got married.
If you have any ‘defined benefit’ (final salary) pensions, they will likely pay a portion of your income to your spouse when you die, so it’s important you update them to let them know of a new spouse.
Meanwhile any money that remains in ‘defined contribution’ pensions, such as personal pensions or self-invested pension plans (or SIPPs), when you die can be passed on to your chosen loved ones.
You can tell your providers who you would like to inherit your pension by completing an expression of wishes form. You don’t have to leave the money for your new spouse – if they won’t need the money, for example, you could leave it to children instead – but it’s still a good idea to complete a new expression of wishes form as soon as you get married, to ensure your pension providers know it’s an up-to-date decision.
Getting this in order will not only make everything clearer when you pass away, but also will avoid stressful and costly legal proceedings if your family need to contest your wishes from not being updated.
If you both own property, working out what to do with it can be tricky.
You might decide to move into one and sell or rent the other. Or you might both sell up and buy a new home together.
There are a lot of options here, so it’s crucial to get advice if you’re both bringing property into the marriage.
This will help you avoid any surprise tax, and make sure that there's a roof over the head of the remaining spouse if one of you dies. This includes considering how the home you will live in is owned.
Moffat says: “If a joint property is being purchased it could be a good idea to set it up as tenants in common (joint owners in Scotland) rather than as joint tenants. The shares don't have to be equal so it could mean the person paying more into the purchase has a bigger share.
“On death, your portion could be left to your children, or whoever you decide, in your will. With joint tenancy (joint tenancy with a right of survivorship in Scotland) it would automatically go to your spouse.”
To ensure that your spouse can stay in their home after you have died, Moffat highlights how it’s possible to state in the will that the share in the property will only be paid to your chosen recipients once your spouse has died or sold up.
It’s important to get legal advice if you’re thinking about adding this clause in, as it can be complicated and you’ll want peace of mind that it won’t cause stress for your loved ones later on.
In addition to thinking about what happens to your wealth when you die, it’s also worth giving some thought to what might happen if you separate.
It’s a tricky subject to raise, but if either of you is bringing a reasonable amount of wealth into the marriage, you might want to think about a pre-nuptial agreement, especially if you’ve been divorced before.
Alternatively, if you’re already married, you could set up a post-nuptial agreement.
Rimmer explains: “Nuptial agreements simply set out what a financial agreement would look like if you and your partner were to separate and allow you to ringfence any assets that one or both of you are bringing to the marriage or may inherit.”
However, while these agreements would be considered in the process of a divorce, it’s important to be aware they aren’t legally binding and therefore professional advice is essential to help you both navigate this sensitive step.
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