Have you established a plan to ensure your spouse will continue to have sufficient income? Many seniors fear the loss of income when one spouse dies. This is especially true with second marriages. If the accounts are not held jointly, they may be left to the other spouse’s children, leaving you with little or no

resources. Making sure all assets, including vehicles, are jointly registered assures the assets will be transferred with no probate and without passing through the will. Will having assets invested separately place a financial hardship on your surviving spouse?

Assets registered in joint names do not trigger taxation; rather, a simple re-registration; but if  assets are invested in individual names, the asset is considered to be sold on the date of  death and (unnecessary) taxes must be paid, possibly leaving your spouse with less money. Capital gains can reduce the value of the asset and reduce your spouse’s income for his or her lifetime. If the asset is registered in your name only, check whether there is any tax payable to re-register the asset.

Your will probably states that the assets are to transfer to your surviving spouse. But if this is your second marriage or if there are large capital gains on the assets, this may not happen in the manner you think. It’s not that simple when assets pass through the will. Also, any fees, charges, executor fees, delays, and taxes can be avoided by jointly registering assets. There can be similar challenges in a common-law relationship.

The best thing you can do right now is to review how your assets are owned, who is named as your beneficiary, and the language of your estate planning documents. Then check with your legaladvisor and financial institution or financial advisor; these people are knowledgeable about estate planning and can help to guide you and your spouse.