March is International Women’s Month, and it’s a timely opportunity to remind women of the importance of their role in making financial decisions for their households, including estate planning.
It’s often been true that women have taken a back seat to their spouses when it came to making financial decisions. However, there’s a shifting financial landscape as American women are expected to manage $30 trillion of intergenerational wealth by 2030. In addition, the Certified Financial Planner Board (CFP) Board says that more than two-thirds (specifically, 69%) of female consumers indicate that they are the primary decision-makers when making financial decisions on investments. As women feel more empowered and optimistic about their financial futures, it’s important to include estate planning in the conversation.
Estate Planning is a ‘Must Do’ for Women
Most people have estate planning on their personal “to do” lists, but very few people relish doing it. As one female client put it, “Estate planning is intimidating and confusing. Not just because it is about money but because it is personal and about death. Knowing that this is taken care of, I am much better able to sleep at night.”
Women may feel uncomfortable considering a future in which their life circumstances have changed. While avoidance may seem like the easier, less stressful route, it can have consequences and ultimately create more stress in the long run. Even if a woman is part of a married couple, she should not leave the estate planning decisions entirely up to her spouse. Ideally, both spouses need to be involved in estate planning.
Women live an average of five years longer than men. A longer life expectancy means that women will often outlive their spouses, and they should arm themselves with knowledge and planning.
Benefits of Estate Planning for Women
If you’re a woman who would like to take a stronger role in financial matters for your household, comprehensive estate planning can offer you:
Greater control over your assets. Do you want to ensure that your health, your family, and your assets are taken care of in the future in the way that you’d like them to be? Estate planning gives you a voice in and greater control over what happens. If you don’t have an estate plan or Will in place, Georgia’s intestacy laws will determine what happens to your assets, which may not align with what you truly want.
Preparation for the unexpected. It’s very important to have documents like a Power of Attorney and Advance Directive for Health Care in place. If your spouse becomes incapacitated, you will have the authority to make critical decisions; likewise, your spouse will be able to make those decisions for you. You can also provide for others to be able to step in, in case neither you nor your spouse are able to deal with these matters at some point. If your spouse has managed all the bill paying, financial accounts, and other household matters, it’s essential to know where to find critical information. A Letter of Instructions is one document we highly recommend putting together. If your spouse ever becomes incapacitated or deceased, it will be a great help to have all the information you need readily available. Having this information will also be invaluable for anyone else who may need to step in to assist you.
Guardianship for minor children. Proper estate planning allows you to select trusted individuals to raise your minor children if both you and the children’s other parent die prematurely. Without proper estate planning, the probate court will determine who raises your children and will make this decision without the benefit of your knowledge and opinions.
Minimizing the potential for conflict and confusion at your death. Without proper planning, chaos can create or aggravate tension among your heirs, which can increase the chance of family dysfunction, disharmony and disputes. Conflict can also increase the expense of estate administration, which detracts from the value of assets that are passed on. In blended family situations, well defined estate planning is critical to avoid misunderstandings and disputes.
If you’re a woman who hasn’t started the estate planning process, now is the time to make an appointment with an estate planning attorney. This worksheet may be useful for you to follow as you prepare. Please call the Metro Atlanta-based estate planning attorneys at Morgan & DiSalvo at (678) 720-0750 or e-mail us at info@morgandisalvo.com to schedule a consultation. We can answer your questions and help put your mind at ease that you’ve done everything possible to prepare for the future.
