What strategies should women use when forming estate plans? With their longer life spans and growing economic power, it’s important they protect their assets.
A woman’s longer life span means she should plan for End-of-Life differently than men. When you also consider women currently control $14 trillion in assets in the United States, it’s extremely important they protect their estates when preparing
Here are some helpful tips to keep in mind:
1. Have a Durable Power of Attorney
Since women live (on average) six years longer than men, they are more likely to need help making decisions in their final days. Make sure you have a durable power of attorney in place because if you become incapacitated you are at a greater risk of having a court-appointed figure take control of your assets.
2. Create a Revocable Living Trust
Women, especially widows, should consider creating a revocable living trust for their assets, which provides better protection than a power of attorney in case of incapacity.
3. Create Your Own Estate Plan
Women that are recently widowed shouldn’t rely on their husbands’ estate plans to kick in. This is a good time to create your own estate plan.
4. Revise Your Estate Plan For a Second Marriage
Women who enter into a second marriage later in life should always revise their estate plans. Remember any assets you bring to a second marriage may end up paying for your new spouse’s medical bills and long-term healthcare. Some estate planners even recommend women with substantial assets buy long-term-care policies for their new spouse.
5. Get Long-Term Care Insurance
Women who can afford it should seriously consider buying long-term care insurance for themselves. Women are more likely to need it than men because of their longevity.
6. Account For Future Assets
Divorce changes a woman’s long-term financial planning. Be careful about what remains in your name following a divorce. This can affect not just your current assets but future ones like retirement accounts and pension plans.