Estate Planning for Women
In many cases, estate planning is more important for women. Of Americans 65 and older, 42% of women are widowed but only 14% of men are widowed. Women typically have a longer life expectancy, a tendency to marry older men, and lower lifetime earnings, meaning that they are more likely than men to see their living standards compromised if proper estate planning isn’t completed. Further, since women typically live longer, they usually have the last word about which assets go to family, charity, or Uncle Sam.
When considering estate planning, women should think about these six questions:
- Whom can you trust? Medical advancements enable women to live longer which increases the likelihood of suffering from a diminished mental state-and the need for a durable Power of Attorney.
- Who would raise your children? You want to prevent a custody battle and the possibility of nobody wanting to take over.
- Do you need life insurance? Life insurance is a good way to replace lost income or to pay for estate taxes, especially when your estate is made up of illiquid assets.
- Do you have assets of your own? You may need to transfer property from one spouse to another or out of joint ownership.
- Is there money in the bank? Make sure there is enough money to cover immediate expenses should one spouse pass away. Funds from the deceased spouse’s separate account won’t be available for use right away.
- Should you shed assets to save taxes? Make sure you leave yourself enough before you start giving things away.
See Deborah L. Jacobs, Six Estate Planning Questions for Women, Forbes.com, June 22, 2010.