How to Protect Your Assets in a Second Marriage

When you marry again, you’re thinking about love and new beginnings — not about losing your savings to pay for a spouse’s medical care. Yet, without proper planning, that’s exactly what can happen.

Long-term care costs in Maine and across the U.S. now range from $70,000 to $150,000 per year, and about 70% of Americans will need this type of care at some point — often for several years. If one spouse becomes ill, the couple’s combined assets are usually counted toward care expenses before Medicaid (MaineCare) steps in.

That reality can create financial stress in blended families. Money that one spouse hoped to leave to their children could end up covering the other’s long-term care bills.

The Financial Impact of Long-Term Care in Remarriage

When one spouse enters a nursing home or requires home health services, the government views both spouses’ resources as available to pay for care. For many couples, that means spending down joint savings before qualifying for benefits.

But you don’t have to accept that outcome. With careful legal and financial planning, you can protect the healthy spouse’s assets while ensuring that the spouse in need of care receives appropriate support.

Protecting the Well Spouse’s Savings

The law provides some relief through what’s called the Community Spouse Resource Allowance (CSRA) — a set amount of assets the healthy spouse can keep. Unfortunately, that allowance often falls short. It rarely covers living expenses, retirement needs, and future security for children from a prior marriage.

An elder law attorney can help you create a Medicaid-compliant strategy that meets both spouses’ needs and preserves family wealth.

Smart Strategies for Asset Protection

You can take action now to safeguard your assets. Common planning tools include:

• Medicaid-compliant annuities: Turn savings into an income stream for the well spouse.
• Trusts and transfers: Move assets under legally approved methods that protect them from being spent down.
• Penalty-reduction planning: Time transfers or use exemptions to minimize penalties under Medicaid rules.

These strategies must follow strict regulations, so always consult an experienced elder law attorney before moving money or property.

Long-Term Care Insurance: An Added Layer of Security

Couples who remarry later in life should also explore long-term care insurance. Policies with long-term care ridersallow you to use part of your life insurance benefit to pay for future care.

Learn more about policy options through JRC Insurance Group.

Why Early Planning Matters

Planning early gives you more control, more choices, and better protection. When you act before a crisis, you can:

• Protect your savings and home
• Preserve inheritances for your children
• Qualify for MaineCare (Medicaid) benefits more efficiently
• Reduce stress during an already difficult time

Marriage is a celebration of hope and connection. With the right legal guidance, you can protect your financial future and enjoy that new beginning with peace of mind.

Let’s Talk About Your Options

At Aging in Maine, we help couples plan for long-term care, preserve their assets, and protect what matters most.

📞 Call us today at (207) 848-5600 or visit our Contact Page to start planning for your family’s security.