Dear Liz: I’m 64 years old and still working and making a decent salary. Her wife retired at age 61. I have lived most of my life as a high earner while she worked and supported her family. I have no intention of retiring anytime soon. Is it a good idea for her to start receiving Social Security at age 62?
answer: Most people are better off delaying filing for Social Security for as long as possible to maximize their lifetime benefits. Delaying is especially important because as a high-income earner, your benefits will determine how much your survivors receive.
But your wife may be one of the few people who is better off starting early. That may be the case if you keep delaying her application and her spousal benefit ends up being more than she would receive on her own record.
If both of these are true, she could start receiving reduced retirement benefits at age 62 and switch to spousal benefits up to half of her check after filing for benefits. Hopefully she will reach her upper limit when she is 70 years old.
Your wife cannot receive spousal benefits until you apply. On the other hand, if you are already receiving benefits at the time of application, she cannot switch her benefits.
Obviously, there are many rules involved, and what’s best for both of you will depend on the specifics of your situation. It is wise to use Social Security claims sites such as: Get the most out of social security or social security solutionsto help you decide on the best approach.
What is subject to probate varies by state.
Dear Liz: The value of our car, furniture, and personal items is far less than the $185,000 that is currently subject to probate in California. We no longer own the property. Is it correct that investment accounts and bank accounts with designated beneficiaries are not counted toward the probate limit?
answer: yes. (By the way, your car doesn’t count either.)
Most states have simplified the process for small estates. California’s limit, which increases every three years with inflation, was set at $184,500 on April 1, 2022. What counts for probate purposes varies by state law; California excludes cars, boats, mobile homes, and bank accounts owned by more than one person. persons, property transferred directly to spouses, and real property outside of California.
Other assets that can avoid probate include life insurance proceeds, death benefits, and accounts with named beneficiaries. Real estate can avoid probate if it is held in joint tenancy or transferred using a transfer on death deed. Assets in a living trust can also avoid probate.
Further advice
Liz Weston is a certified financial planner and personal finance columnist in the United States. Nerd wallet. Questions can be directed to 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or by using the “Contact” form below. askrizweston.com.