Contact The Firm

How to approach estate planning when there is an age difference

On Behalf of | May 5, 2023 | Estate Planning |

If your spouse is significantly older or younger than you, estate planning may look a bit different than for similarly aged partners. It is essential to have an open and honest discussion with your spouse about your plans for the future.

These tips can help you with the estate planning process.

Talk about your employment plans

You and your spouse may be at different stages in your career. Talk to your spouse about how long you plan to continue working. Review your finances to determine whether you can afford to retire when you want to. If your plans are incompatible with your spouse’s plans, discuss potential compromises.

Discuss when you plan to start withdrawing distributions from your retirement accounts

When you or your spouse starts drawing money from retirement accounts affects the long-term value of the account and your tax situation. Talk to a financial advisor about strategies to maximize the value of your accounts.

Consider whether the younger spouse will be relying on income from the older spouse’s retirement accounts

While there is no guarantee that the younger spouse will outlive the older one, it is likely. Before deciding how much and when to take money out of your retirement accounts, it is important to consider whether the surviving spouse will need income from those accounts and determine whether there is enough to support both of you for the remainder of your lifetimes.

Age differences can make estate planning for married couples more challenging. However, by acknowledging the challenges and planning for them, you can ensure your plan protects you both.