My Husband and I Are Worth $3.7 Million, But I’m Afraid I’ll Spend My Way Into The Poor House If He Dies. What Can I Do?

Published: Aug. 31, 2020  By Quentin Fottrell

Dear Moneyist, I am a 65-year-old woman married to a great guy for decades. We have no children.

He earns all the money and handles all our finances. During my entire life I have not been a good money manager. I love to spend money and have a head-in-the-sand approach to money problems. Before our marriage, I bounced checks often.

My fear is that I will outlive my husband, and then have no one to check my spending impulses. We owe less than $200,000 on our home, which is valued at over $2.5 million. We have another $1.2 million in retirement funds. He has a $1 million life-insurance policy.

We intend to retire within three years, sell this home, and relocate within California to a smaller home costing around $450,000. So, should he predecease me, I will have possibly a huge sum of money at my disposal. At the moment, we have a family trust and living wills.  Is there something we could set up to make sure I don’t spend myself into the poor house?   Spendthrift in California

Dear Spendthrift, Your husband could set up a trust for you that gives you a monthly income, with provisions for emergencies, and you can talk to a financial planner about all of those options. That continues the model you have both set up for yourselves now: He manages the money, you go along with his decisions, and he oversees how you spend and manage your money.

You can only learn how to manage a household budget, prioritize bills, refrain from making impulsive purchases and put something aside for a rainy day if you actually do it. The best time to start is now, not when your husband passes away, assuming he predeceases you. This column is about money, but it’s also about relationships, and chief among those is the relationship we have with ourselves.

Starting today, you can learn about income and expenditure, and/or having an account for an emergency fund in case you get sick or require a new car or a roof on your home. Your husband can help you, of course, but I suggest taking a money-management class in an effort to build your confidence and become more independent. You don’t want a trust to replace your husband.

To continue reading, please go to the original article here:

https://www.marketwatch.com/story/my-husband-and-i-are-worth-37-million-but-im-afraid-ill-spend-my-way-into-the-poor-house-if-he-dies-before-me-before-we-married-i-bounced-checks-what-can-i-do-2020-08-20?mod=article_inline