Remarrying during retirement is a joyful milestone, but it also brings with it a host of financial, tax, and legal questions that deserve careful attention. Unlike earlier in life, when careers are still developing and children may be young, later-life marriages usually involve established families, accumulated assets, and long-term financial commitments. Without a plan, misunderstandings or unintended outcomes can arise, particularly in blended families. The good news is that with thoughtful preparation, couples can enter this new chapter confident that both their relationship and their legacy are protected.
Updating Estate Plans and Beneficiaries
One of the most common oversights after remarriage is failing to update estate documents. Wills, powers of attorney, and trusts may no longer reflect your wishes once a new spouse and stepchildren are part of the picture. Just as important, retirement accounts and life insurance policies pass directly to named beneficiaries, regardless of what your will says. If your ex-spouse is still listed, those assets may go to them unintentionally.
Recent legislation makes these choices even more significant. The SECURE Act of 2019 and SECURE 2.0 (2022) changed the rules for inherited retirement accounts. While surviving spouses still enjoy favorable treatment, children and other non-spouse beneficiaries are now required in most cases to withdraw the full balance within 10 years. For families in second marriages, this can complicate how retirement wealth is shared. Trusts, such as Qualified Terminable Interest Property (QTIP) trusts, are often used to balance the needs of a surviving spouse with the goal of preserving assets for children from a prior marriage.
Taxes and Income in a Blended Household
Marriage changes how taxes are calculated, which can be either helpful or harmful depending on your circumstances. Filing jointly may lower overall liability, but combining incomes can also push couples into higher tax brackets, trigger the 3.8% Net Investment Income Tax, or increase Medicare premiums under the Income-Related Monthly Adjustment Amount (IRMAA) rules. Couples with substantial retirement income should run projections before deciding how to file.
Legal Protections and Property Ownership
Blended families can face complex legal dynamics. A prenuptial or postnuptial agreement can clarify which assets remain separate, how property will be divided, and what rights each spouse has in the event of death or divorce. These agreements often provide peace of mind for both partners and reduce the potential for disputes among heirs.
How property is titled is equally important. Holding a home in joint tenancy with right of survivorship ensures it passes directly to the surviving spouse, but may unintentionally cut children out of ownership. Titling as tenants in common allows each spouse to leave their share to heirs of their choosing. In many cases, placing property in trust can provide the flexibility needed to care for a surviving spouse while protecting children’s inheritances.
Social Security, Benefits, and Long-Term Care
Remarriage can also affect government benefits. Social Security has special rules: if you remarry after age 60 (or 50 if disabled), you may still be entitled to survivor benefits from a prior spouse. Remarrying earlier could cause you to lose those benefits. Couples should review their claiming strategies carefully, since timing can significantly impact lifetime income.
Healthcare and long-term care costs add another layer of complexity. Marriage generally makes both spouses’ resources available for determining Medicaid eligibility, which could put assets at risk if one spouse requires extended nursing home care. Couples should consider long-term care insurance or other asset-protection strategies to avoid unexpected financial strain.
A Coordinated Approach
The common theme in all of these issues is the importance of coordination. Estate planning, tax planning, and financial planning should not be done in isolation—particularly in later-life marriages where family dynamics and legal obligations intersect. For this reason, Legacy Trust & Capital Partners’ integration of all main services (Legal, Accounting, Insurance, Wealth Management) is the best choice for your retirement planning.
Moving Forward with Confidence
Remarrying in retirement is both a personal and financial turning point. By revisiting estate documents, updating beneficiaries, reviewing tax implications, and planning for healthcare and long-term care, couples can ensure their wishes are honored and their loved ones are cared for.
Love may bring you together, but planning will help protect the life you are building. With the right strategies in place, we can help you protect your legacy.
