This article offers general information about estate planning. Please consult with an estate planning attorney about how best to plan your estate.
Estate planning is an essential part of financial security that all women should consider. You need to take proper steps to plan your estate to avoid finding yourself in a situation where your assets are distributed according to your wishes or to the people who may depend on them. Proper estate planning ensures that your loved ones will be taken care of financially while allowing you to choose who will manage your estate after your death.
Estate planning is an important part of ensuring financial security. Estate planning can help to protect assets from taxes, lawsuits, and creditors. Yet, many women do not take the time to plan their estates. Fortunately, there are simple steps that can be taken to get started. The first step is to identify all the assets that need to be included in the estate plan.
What to include in your estate plan
Every woman should have these primary documents in place:
- A will: a legal document that directs how your financial and physical assets should be distributed at your death.
- A living will: states your wishes for “end-of-life care.”
- A power of attorney: appoints one or more people to make medical decisions on your behalf if you cannot make them yourself.
Why should women plan their estates?
Everyone should plan their estate regardless of their net worth or marital status. Let’s look at four critical reasons this is especially important for women.
Women usually outlive men
An effective estate plan is essential for any woman who wants to ensure that her financial assets are protected and distributed as she wishes after her death. Women tend to live longer than men and therefore have a longer time frame to consider when estate planning. It is important to review your estate plan frequently and ensure that the documents are up-to-date and reflect your current wishes. An estate planning attorney can provide guidance and help create a comprehensive plan that meets your individual needs.
Women are more likely custodial parents
With 84% of custodial parents being women, it is essential to adequately plan for the care of any minor children in the event of their death or incapacitation. Providing a guardian to ensure that your children are raised according to your beliefs and values, as well as providing trust funds to finance their upbringing until they are of age to make their own decisions, are just a few steps in the estate planning process that should be taken into account when developing a comprehensive plan. A thorough and organized estate plan can ultimately protect your children’s future and provide peace of mind.
Women contribute to the workforce
Whether they are the top earners in their households or not, career-driven women contribute to their household’s income and should be involved in the decision-making of the estate plan. Career-driven women can have peace of mind knowing that their goals and objectives have been met by having a comprehensive plan that covers both their personal and financial futures.
Some women sacrifice their careers for family
Not all women have an uninterrupted career history. Some women take a break from work to raise children due to family responsibilities. This break in work can reduce the savings these women accumulate for retirement. Therefore, an organized estate plan can help with transferring of assets.
As trusted financial advisors, we want to help empower women to make these important financial decisions. If you don’t know where to start and are looking for guidance, don’t hesitate to contact us today.