Will the death of your partner rock your financial world?
Did you know that the number one reason for widows to be in poverty is because their spouse died? In other words, before that person passed away everything was rosy. Your financial plan absolutely needs to take the death of your partner into account (as well as their long-term care needs). Failure to do this is simply negligence.
One of the things I'd like to talk about this time has to do with the subject of titling your assets. This is something that sometimes doesn't get as much attention as it should, but doing it wrong can have very undesirable consequences.
For example, suppose that you and your partner own a brokerage account worth $1 million dollars. Your partner's share in this account is $500,000. The account is titled as TOC, which means Tenancies in Common.
Life is beautiful. Then, one day your partner is bitten by a rabid dog, and after biting many of her old acquaintances, dies shortly thereafter. When the will is read, your partner has specified that she'd like to leave her portion of the brokerage account to her son, Otis, who is an alcoholic living in Mayberry, NC with his alcoholic wife Agnes. You haven't seen either of them in twenty years.
Can she do that?