Estate Planning Advice for Women: Plan Early, Plan Smart

Estate planning is crucial for everyone, but for women, it comes with unique challenges and opportunities. Whether you're single, married, divorced, or widowed, having a solid estate plan is essential—especially if you’re over 60. Women often live longer, are more likely to be custodial parents, and approach retirement differently than men. As caregivers, women tend to prioritize others' needs, but when it comes to estate planning, it’s time to put yourself first.

The Importance of Planning Ahead

Over 30% of women over 65 are widowed, while just 11% of men in the same age group are. This statistic underscores the need for proactive planning. Consider what would happen if you’re financially or emotionally dependent on a partner or relative who becomes incapacitated or dies. For instance, if a spouse receives a pension and opts for maximum lifetime benefits without survivor benefits, the surviving spouse could be left with nothing. Planning ahead can provide more financial security and peace of mind.

Estate Planning for Different Life Stages

Single

If you’re single and child-free, the main challenge is deciding who will make medical and financial decisions on your behalf if you become incapacitated. Ensure you have designated someone to take care of you and manage your affairs through legal documents like a power of attorney and healthcare directive.

Married with Minor Children

For married women with minor children, the top priorities are naming a guardian for their minor children and securing income replacement through life insurance. These steps ensure that your children are cared for and financially supported if anything happens to you or your spouse.

Widowed

If you’ve lost a partner, updating your estate plan to reflect this change is vital. This includes reassessing your financial situation and exploring new planning opportunities and challenges.

Divorced

After a divorce, updating beneficiary designations on retirement accounts and other financial documents is critical. Overlooking this step can lead to unintended beneficiaries receiving your assets. It is also necessary to update your Will and Powers of Attorney to reflect who you would want as your decision maker, and to receive your assets.

Considerations for New Marriages

Entering a new marriage, especially with significant assets, requires careful estate planning. Women often hesitate to discuss their net worth before a new marriage, but doing so can prevent future complications. In Washington, for example, a spouse automatically inherits a portion of the deceased’s property, which could impact your children’s inheritance.

To protect your assets:

• Update Beneficiary Designations: Ensure your children or chosen beneficiaries are designated before marriage.

• Set Up a Trust: Create a trust before marriage, naming a child or relative as the recipient, to shield assets from a new spouse’s medical expenses or nursing-home care.

• Consider Long-Term Care Insurance: Purchase a policy for your spouse to safeguard your assets.

Talking to Your Family

Communicating with your family about their estate plans is crucial, especially if you are a caregiver. Discuss with siblings and parents how caregiving responsibilities might affect the division of your parent’s estate. Early conversations can prevent future conflicts and ensure everyone’s expectations are clear.

Getting Professional Help

Creating a comprehensive estate plan isn’t a DIY task. An experienced estate planning attorney can help you navigate complex legal issues, ensure your documents are valid, and tailor your plan to your specific needs. Professional guidance is especially important for unmarried women, who may not have the same legal protections as married couples.

Final Thoughts

Estate planning for women involves unique considerations, from managing longer life spans to ensuring financial independence in the face of unexpected changes. Of course, these same dynamics could apply to anybody planning their estate. Starting early and working with an attorney can help you create a plan that reflects your wishes, protects your assets, and provides for your loved ones.

Take the time to plan now, and you’ll be investing in a secure and positive future for yourself and those you care about.