Take care

Most people look forward to retirement as a period where they can spend more time with family and loved ones. Many couples, especially, if both spouses are working, hardly get to spend adequate time with each other during their working lives. And even though both may not be working, a lot of disconnect can happen because both are busy doing their different chores.

 

Many look forward to the retirement period to make up for all the lost time. However, if one spouse passes away post retirement, it is a big blow to the other emotionally and even, financially sometimes.

Therefore, it's very important that all the finances as well as legal issues be sorted out well in advance. The best way to ensure a smooth life ahead would be to prepare your spouse and arm him/her with all the necessary documentation while you are still around. Here are a few things you must take care of:

Educate your spouse regarding the basic details of your personal finance. In retirement, you have all the time you need. Get him/her to fill in forms, write cheques and transaction slips so that they become used to the investment process. Go over all your investment details with them.

Introduce your spouse to all the professionals who are associated with your finances such as your accountant or auditor, broker, financial advisor or planner and lawyer.

Make a list of all the assets you possess as a couple. Also, put them down in a proper sheet instead of committing it to the memory. Prepare copies of the list. Whenever you make or redeem any investments, make necessary changes to the list.

Try and make as many joint investments as possible because in case of one of the spouses were to meet an unfortunate demise, the other one would automatically become the sole owner of the investment. This is much better than making the other a nominee because the latter has to go through paperwork in order to claim the assets. Ideally, nomination should be made for those who will inherit your assets after both you and your spouse.

Make sure you have proper powers of attorney (POAs) in place. Old age or ill health often leads to inability to sign documents, or there could be variations in your signature. In such a case, accessing your investments and executing other documents can be troublesome. It would be better, if the POA is given to a trusted person to conduct affairs on your behalf, in case you are indisposed. Ideally, you should execute a reciprocal power of attorney with your spouse, so that both can act on each other's behalf.

Even though you make a POA, you must make a will. A power of attorney not a substitute for a will, as it ceases immediately on your demise. Moreover, a proper will can ensure that there are no other legal claimants to the assets you intended for your spouse.

Ensure that both of you have adequate medical cover and keep renewing it timely.

If you receive any pension, make your spouse aware of the process to get it transferred in their name upon your demise.

Finally, plan your investments in such a manner that your spouse would get adequate income for their lifetime.

Yes, it is not in your hands to ensure that you have a long life, but it's definitely in your hands to leave a secure future ahead for your spouse.

The writer is director, Touchstone Wealth Planners