Expert: Willard R. Brumbaugh, LUTCF - 10/6/2009

Question
We are domestic partners in California.
Next year we will both be receiving social security as our main income. I get about $1250/mo, and also get about $450/mo. from my retirement plan.
He'll be receiving about $800/month social security.

My question is: should we get married in order to pay less taxes, and enable him to apply for my social security when I die. I'm female, about 6 years older than he is, and will probably die first. I only have Medicare insurance.
My only real asset is my house, which has a $70,000 loan balance. It's only worth about $250,000. I have a will and he will inherit the house when I die.

We don't know if it'll cheaper to stay single or get married.


Answer
Dear Bobbi,

As an unmarried individual your partner would only have his $800 per month should you pass away first. By marrying your Social Security would take the place of his at your passing. So, it would seem to be more costly to remain single.

My questions for you: Would he be getting only your Social Security income were you to marry? Would $1,250 per month be enough?


Willard R. Brumbaugh, LUTCF
CA License 0374776
www.willardbrumbaugh.com
(888) 7923-2379