Jessicas Death Retirement or Disability - Case Study Example

Walter will have to take both parenting responsibilities unless he takes the option of hiring a nanny who will add on to the list of expenditures.

Their employment:
Her part-time job will automatically come to an end or the terms are revised, based on what type of situation it will be. In the case of retirement, obviously, if she had secured a permanent job. Walter will most likely switch to a better-paying job, in order to cushion the family from any event that might have affected Jessica. Or based on his assumption of current employment, he will ask for a salary increase.

Assets and liabilities owned by both of them:
Their house, based on their current valuation indicates that it appreciates at approximately $9000 each year. If she is to retire at the age of 60 and the rate of inflation stayed fixed, it will be valued at $478000.Within this time, their 15-year mortgage plan will have been fully cleared. Other joint investments will with BMO, will stay the same, while one of the cars, preferably Jessica’s, and will be sold off to keep family finances afloat. The expenses will be borne heavily by Walter since Jessica will have less to deduct from.

Existing or ongoing financial obligations:
The insurance premiums and other deductions will likely continue especially the monthly taxes as well as household needs. Whether the weight will be borne by the two entirely depends on the presence and ability of Jessica. In case of death, her tax deductions, as well as her car benefits, will be cut short, while the weight will shift to Walter, who is likely to start cutting down on the expense.

Other beneficiaries they wish to include:
The will they made, even though not up to date, encompasses what makes up their life. As a result, it will come into operation in the case of her death, with Walter and the kids taking full shares in the marital property. In such a situation, Walter is likely to revise the will and entitle the kids to full administration of an estate in case of his unavailability too.

Their retirement plans:
Assuming Jessica too plans to retire at 60 and things remain the same, she won’t be entitled to any benefits, since she is not in any pension plan. In case of her demise, the spousal plan currently being paid for her by her husband will stop. Read More