Now that George and Amal have tied the knot, there are steps they need to take to be as financially savvy as they are media savvy. Here is a list of 8 savvy financial moves that they should do, or consider doing, to also have their finances be in a state of marital bliss:
1. Decide where to live
New couples often want to find a new home and make it their own rather than keeping existing residences. George is said have bought a new home for them for $15 million in Thameside village.
The home on Lake Como is a keeper, of course. Perhaps it will become their weekend retreat.
2. Consider setting up a joint bank account to manage household expenses
While the power couple may not choose to merge all their accounts, having one for the household will cover things like food, home maintenance, service workers, staff, etc.
3. Consider forming a joint charitable fund
Since George and Amal are both civic minded, they may want to give to causes jointly. An easy way to do that is to set up a Donor-Advised Fund that allows them to set up a “mini-foundation” of their own at very low expense. It will give them more control for charitable giving and the timing of the gifts.
4. Increase their liability insurance
Power couples can be a magnet for crazy people, so increasing their liability coverage is a good idea. It’s generally very inexpensive – only a few hundred dollars for a few million dollars of coverage – so it’s a great buy and provides peace of mind.
5. Determine if a Buy-Sell Agreement and life insurance are needed
Since George and Amal have their own successful businesses, if one of them died, the other would inherit their share of the business. A life insurance policy is often purchased with the sole purpose of using the proceeds to pay off the spouse’s partners and sell back the deceased’s share of the business. For example, if George died prematurely, since George is a part owner of Casamigos tequila with Rande Gerber and Mike Meldman, a buy-sell agreement would provide funding for his partners to buy George’s former share of the business from Amal.
6. Meet with their CPA to determine if they will be filing taxes jointly or separately and how to handle their dual citizenships
They will be considered having been married for the whole year of 2014 for tax purposes, so it’s a good idea to get a handle on their taxes and do some planning now. Amal is a Brit so this can make filing taxes more complicated.
7. Create new wills
Not only does a will name the surviving spouse as a beneficiary, but it allows for other beneficiaries to be named (such as their parents, siblings, charities, etc.). A will can also create marital trusts that can be a strategy to save hefty estate taxes in case of George’s untimely death, since he reportedly has an estate valued at $180 million (and Amal’s estate is reportedly $2 million).
8. One last thing
Finish opening their gifts, decide which to keep and which to return, and start writing thank you notes!