Empowering Women: Securing Financial Legacies Through Estate Planning

By Angela Grannan on November 13, 2023

Just because October was officially Estate Planning Awareness Month, doesn’t mean we can’t discuss it in November!  Any month is a great time for women to protect their financial legacy and create an Estate Plan. 

My last blog post took a look at the financial power of women in the US and it impressive effect on the economy. Women control more than $11 trillion in US household financial assets and more women than ever of prime working age are working, earning, investing and spending.[1]  

It is important for women to take steps to protect all of this progress for themselves and their families. Despite all of the assets that women own, control, and manage, many put off creating an estate plan. In fact, only 22% of women report having a documented estate plan.[2] 

Regardless of age, marital status or wealth, an estate plan protects assets and choices. Remember, if you own a home, a car, have a bank or investment account or a business, you have an estate! An estate plan makes sure that your wishes are carried out by distributing assets to beneficiaries of your choice. Having all of this in place can minimize taxes and legal fees and keep the peace among family members.[3]

So what documents make up an Estate Plan? Let’s review:

• Will-This document ensures that assets go to beneficiaries of your choice. It allows you to name a guardian for minor children. (This is so important! Wouldn’t you rather make this decision than the courts making it for you??) You will also names the executor of your estate. The executor will handle your affairs after death. Make sure this is someone you trust and will be dedicated to handling the financial and legal matters of your estate.[1]
• Revocable Living Trust-This document allows you to set aside and manage assets while you are alive and after you pass away. Assets placed in a trust are transferred to your beneficiaries after you die. A trust is not subject to probate and can be amended as your life changes.[2]
• Power of Attorney-In this document you authorize a person to manage your financial and legal affairs and make decisions if you are incapacitated.[3]
• Power of Attorney for Health Care-This document allows you to name a person to make health choices for you when you are unable to make them for yourself. You can also use this document to tell your agent what your wishes are regarding life-sustaining treatments.[4]
• Schedule of Assets-This is not a legal document, but an important part of your estate plan.  A comprehensive schedule of assets will make the process of settling your estate easier for you executor and loved ones.  Be sure to include all of your assets—real estate, life insurance, vehicles, bank accounts, investment and retirement accounts, business interests, private equity, etc. And don’t forget to include where these assets are located.[5] 

An estate plan is not something that you can set and forget. Be sure to review it every 3 to 5 years and update your plan as your life evolves for example, marriage, divorce, birth of a child/grandchild etc.. Estate planning is an “uncomfortable chore”.[9] We don’t like to ponder our own demise! But in the end, an estate plan is a selfless gift to your family. It will provide some clarity and peace of mind at a difficult time. 

If you would like to discuss creating or reviewing your estate plan, please contact your Lerner Group Wealth Advisor. 

[1] https://www.fastcompany.com/90897283/women-in-the-u-s-are-about-to-gain-significant-wealth-heres-what-that-means

[2] https://www.lawdepot.com/resources/estate-articles/estate-planning-report/

[3] https://www.gentreo.com/complete-guide-to-estate-planning-for-women

[4] https://trustandwill.com/learn/estate-planning-for-women

[5] https://www.gentreo.com/complete-guide-to-estate-planning-for-women

[6] https://www.gentreo.com/complete-guide-to-estate-planning-for-women

[7] https://www.illinoislegalaid.org/legal-information/setting-power-attorney-healthcare

[8] https://www.financialsamurai.com/schedule-of-assets-an-estate-planning-essential/

[9]https://trustandwill.com/learn/estate-planning-for-women