A recent column of mine ("Wondering About Spousal Social Security Benefits?") raised some questions about spousal benefits, specifically about a "combination of benefits."

That's the term used by a Social Security Administration spokesperson who said that if someone qualifies for benefits on his or her own record, an additional benefit may be available through his or her spouse.

I reached out to Louis Trivisonno, NSSA, a financial adviser for Marcum Wealth, for some insights on the combination of benefits. Marcum Wealth is a U.S. Securities and Exchange Commission-registered investment adviser.

"The calculation of spousal benefits and how they are shown can be confusing," Trivisonno said.

To help illustrate how the combination of benefits works, he offered this example of spouses who waited until full retirement age (FRA) to begin collecting their Social Security benefits.

"Spouse 1 has a monthly benefit of $3,000, and Spouse 2 has a monthly benefit of $1,200 (on her own record). [Due to the spousal benefit rule], Spouse 2 should be entitled to $1,500 per month because half of $3,000 is higher than $1,200," Trivisonno explained.

"Instead of the (SSA) stating that you are entitled to $1,500 off your spouse, the SSA will say that your benefit is $1,200 off your own record, plus $300 off your spouse's record. That is the 'combination of benefits.'" For more on the rule, see tinyurl.com/2nasx2xm.

What if one spouse started taking benefits before his or her FRA and the other waits to age 70?

In my earlier column, I used the example of a couple who are the same age, but while Wilma retired at 62, Harold waited to retire at 70. Let's say that Wilma receives $750 per month, while Harold gets $1,500 a month now that he is 70. How is Wilma's amount adjusted now that she is 70?

"First, Wilma started collecting her benefits at 62, which means that she permanently reduced her retirement benefit to collect early," Trivisonno said.

"Second, Harold waited until age 70 to collect his benefit. Each year he waited ... Harold received an 8% step up. He has accumulated a monthly benefit of $1,500, which means that his benefit at FRA (age 66) was around $1,200 per month. (The FRA age is based on the year you were born (tinyurl.com/2uwp4t5z).)

"The maximum that Wilma can receive while Harold is alive is her own benefit or half of Harold's FRA benefit, NOT the age 70 benefit. That is a common misconception," Trivisonno said. "In Wilma's case, her $750/month is still higher than $600, which is half of Harold's FRA benefit of $1,200."

What happens if one spouse dies before the other? "If the surviving spouse is already receiving a benefit on the spouse's record, then the surviving spouse will be automatically converted into a survivor and receive a survivor's benefit," Ann Clifton of the SSA's Press Office said.

Trivisonno added: "If Harold passes away before Wilma but after they both start collecting Social Security, Wilma is entitled to the higher of the two benefits. In this case, she would lose her $750/month but gain Harold's $1,500/month."

In regard to a reduced benefit (Wilma's situation), the SSA webpage for calculating spousal benefits notes the following: "A spousal benefit is reduced 25/36 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month."

If you have questions based on your own situation, reach out to the SSA to better understand what you are receiving, and to make sure you are getting the amount you are entitled to receive or use the SSA calculator.

The calculator is at tinyurl.com/zv77bdes. The information on the webpage states: "The spousal benefit can be as much as half of the worker's 'primary insurance amount,' depending on the spouse's age at retirement. If the spouse begins receiving benefits before 'normal (or full) retirement age,' the spouse will receive a reduced benefit." Note that the spouse must be at least 62 years old or have a qualifying child under his or her care to receive spousal benefits.

Other resources are available by using your My Social Security account (tinyurl.com/34dhsb4z), visiting a local Social Security office (tinyurl.com/52t68mh8) or calling 800-772-1213. Note that there are changes coming to My Social Security, something I plan to address in a future column.

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As we discussed last week, it's vitally important to understand family dynamics when preparing a will and planning an estate. In fact, books have been written about legal disputes that arise when things just aren't thought through properly.

Take attorney Russell Fishkind's book, "Probate Wars of the Rich & Famous" (tinyurl.com/3fkyyjbw). (Great title, don't you agree?)

Quoting Fishkind, this is where problems start: "Probate litigation almost without fail is caused by the actions of an antagonist or the inaction of a decedent who failed to implement an effective estate plan coupled with one or more of the following recurring fact patterns: a dysfunctional family; a second spouse and children from prior marriages; significant wealth involving a family business; an elder infirm widow or widower who allegedly changed his or her intentions shortly before death; and either a tyrannical or dilatory fiduciary. Should these explosive conditions exist, expect the blaze to follow. After the funeral unspoken words lead to heated words, followed by less than diplomatic late-night emails. Thereafter, lines are drawn, detentes formed, and the best lawyer sought -- all the precursors that lead to battle."

So the idea is to avoid a lawsuit, whether you are a celebrity or not.

The details of these battles sometimes make the news. Legendary singer Tony Bennett died in 2023 at the age of 96. Less than a year later, the two daughters of the singer sued their brother, the trustee of the family trust, as reported by Wealthmanagement.com (tinyurl.com/3h5zxxyc).

The problem? A disagreement about the value of the estate, leading to a challenge against the brother named as the trustee. As reported in the article, attorney Neil Solarz believed that "a judge will mandate an independent trustee, whether it's a private fiduciary or a corporate trustee."

Blended families always need special attention.

"When a parent dies, the typical order of operations for married couples with children is for everything to go to the surviving spouse, and then to their children," Wall Street Journal reporter Ashlea Ebeling wrote in "The Brady Bunch Breaks Down: Estate Fights Tear Stepfamilies Apart" (tinyurl.com/52bvrd74).

"But this can be a disaster for blended families since a surviving spouse often has no obligation to leave assets to stepchildren."

And, don't forget to actually write a will. Actress Anne Heche, who died in 2022 at age 53 following a car accident, died without a will, as USA Today reported (tinyurl.com/2r7t6p3n). Her first-born son (Heche's first marriage ended in divorce) was appointed by the court as the administrator of the estate, but was challenged by the father of her second son. Life can be complicated ...

To help your family, you owe it to them and to yourself to think ahead and plan for the inevitable. Someday, your family will need to step forward to execute your plan or deal with your lack of planning. It's really that simple.

My advice is to get a will if you don't have one. If you do have a will, review it every two years or sooner if any of these life events occur:

-- A birth, adoption or death in the family.

-- A change in marital status (whether it relates to you or your heirs)

-- A change involving a named trustee, executor or guardian

-- The purchase or sale of assets

-- The addition or subtraction of art and collectibles

-- A change in business ownership

-- A change in tax laws

Among the documents to review, especially if there have been changes in how assets are titled:

-- Wills, trusts, powers of attorney and health care proxies.

-- Bank and brokerage accounts and other investment statements. (Look for changes in ownership.)

-- Beneficiary designations for IRAs, 401(k)s, 403(b)s and other retirement accounts.

-- Ownership of life insurance contracts and death benefits.

Communicating your wishes through correct documentation is an important part of transmitting an inheritance. Make sure you do your homework and keep up with any changes. Don't forget family dynamics. Bottom line: Do not put this off.

If you would like to read about integrating financial and estate plans, email me at readers@juliejason.com. I can send you an article I wrote for a law publication on the topic.

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There’s a huge wealth transfer coming to the next generation -- more than $84 trillion through 2045, most of which ($53 trillion) is represented by transfers from the baby boomer generation, according to Cerulli Associates, an international research and consulting firm, (tinyurl.com/nhbrsdd3). Cerulli estimates that $72.6 trillion will transfer to heirs and $11.9 trillion to charities.

No matter the size of a potential inheritance, there is no question that the subject can be not only sensitive, but also emotionally charged. Dealing with the loss of a parent is stressful in and of itself. But I can tell you from 30 years of personal experience working with families, there is more.

There is the interplay between siblings and other family members; the learning that needs to take place when dealing with handling estates, perhaps for the first time; the emotional strain of personal grief; the possibility of discovering something new or surprising about a parent’s wishes; and vulnerability due to lack of knowledge of wills, trusts and finances.

That’s not all. More than 1,000 individuals with at least $3 million in investable assets who participated in the recent Bank of America Private Bank Study of Wealthy Americans (tinyurl.com/yma3bnuf) shared theses stress points: unequal distribution of assets; lack of clear instructions and documentation; lack of trust/transparency in an executor or trustee; lack of communication; and the most common reason reported -- interpersonal family dynamics (59% of respondents).

The good news is that these matters can be addressed in advance. Communication is key. In working with clients and their families during vulnerable times, I see what works and what doesn’t, and it all turns on how families communicate.

Cerulli Associates recommends “making family events a regular part of the advisory process” to improve relationships between generations (tinyurl.com/nhbrsdd3). According to Cerulli’s 2021 report on wealth transfer, “family meetings and regular communication (81%) is considered the most-effective wealth transfer planning strategy by [high-net-worth] practices, followed by educational support (59%) and organized succession planning (31%).”

Further, “extending interfamily relationships to involve the entire range of stakeholders rather than just the current controllers of that wealth will create a greater sense of responsibility and inclusion among heirs.”

In some cases, parents discuss their own personal finances with their children as well as their legacy interests, and in others, they don’t. (If you are on the fence about monetary disclosure, keep in mind that once that door is opened, you can’t close it.)

In my experience, those families that succeed in sharing information have children who are financially and emotionally comfortable themselves.

Beyond frequent and effective communication with heirs, implementing a plan and making necessary adjustments are also key. Unfortunately, only a fraction of wealthy Americans seems to agree.

Less than half of those surveyed by Bank of America have the basics of estate planning in place, despite their wealth. (“Basics” is defined as including a will, living will/or advanced healthcare directive and a durable power of attorney). This includes 54% of those who are 44 or older.

Also, only 29% of respondents reported that an estate should be updated at regular intervals (i.e., annually). More popular reasons to update an estate plan were tax law changes (38%); significant changes in wealth (35%); and a life event, such as a birth, marriage or divorce in the family (34%). In other words, it is more popular for the wealthy to be reactionary with estate plans than to be strategic.

If you are in the group that will be handing down money to heirs, being strategic is a must in both your planning and in your communication. As Benjamin Franklin said, “An investment in knowledge pays the best interest.” Knowledge must be passed down along with wealth.

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