Estate planning is an essential part of securing your financial future and ensuring your wishes are honored, especially if you find yourself divorced or widowed. Now that you've entered a new chapter, it's time to look at what the future looks like as far as leaving assets to children, beneficiaries, or charities.
It's important to address the questions now and write down your wishes because once you pass, your family will make those choices for you and they may not be what you would have chosen. Or they could end up fighting over whether or not to sell the house or who gets mom's tennis bracelet.
Prevent disagreements, and make a plan. Here are 10 estate planning tips for women:
It's never too early to start estate planning. The sooner you begin, the better you'll be able to make thoughtful decisions about your future, protect your assets, and ensure that your family and loved ones are taken care of.
A will outlines how your assets should be distributed after your passing. It ensures that your wishes are followed, and it can reduce confusion or disputes among family members. Make sure to name guardians for your children, if applicable.
A revocable living trust helps avoid probate, the court-supervised process of distributing assets. It allows your heirs to inherit your assets more quickly and privately, and it gives you more control over how your assets are distributed.
A power of attorney (POA) gives someone (the agent) you trust the authority to make financial and legal decisions for you if you become incapacitated. This ensures your financial affairs are handled without requiring a court-appointed guardian.
A healthcare surrogate allows you to appoint someone to make medical decisions on your behalf if you are unable to do so. It’s crucial for ensuring your health care wishes are respected. This person can be anyone that you trust, preferably someone close by in the case of a medical emergency. For women, it can be your spouse, one of your children, or a good friend if you are not married.
Ensure that your beneficiary designations (for life insurance, retirement accounts, bank accounts, etc.) are up to date. These override the instructions in your will, so it’s important to regularly check them, especially after major life events (such as marriage, divorce, or the birth of children).
Major life events, like marriage, divorce, having children, or the death of a loved one, may require changes to your estate plan. Make sure to update your will, trust, power of attorney, and beneficiary designations as your life circumstances change.
Consider setting aside funds or purchasing insurance to cover long-term care expenses. Long-term care insurance or a long-term care rider on a life insurance policy can protect your estate from being depleted by medical and care-related costs.
Don’t forget to include your digital assets in your estate plan. This includes things like social media accounts, digital photos, online banking, and cryptocurrencies. Specify how these should be handled after your death, and give trusted individuals the login credentials.
While DIY tools and online services can be helpful, working with an estate planning attorney ensures that your documents are legally valid, comprehensive, and tailored to your unique situation. An attorney can also help navigate complex issues like tax implications, inheritance laws, and special considerations for women (such as managing assets over a longer lifespan).
By addressing these key estate planning elements, women can ensure that their financial, healthcare, and family wishes are respected, and they can feel secure knowing their affairs are in order.
Ready to make a plan? Give us a call today.
