Estate Planning for Women

Estate planning is a blueprint of how you want your personal and financial affairs managed in case of incapacity or upon your death. Although estate planning is often a difficult or uncomfortable topic to discuss, women face unique concerns that make this conversation especially important.

For instance, women, on average, live 5.3 years longer than men, which means you may need your assets to last for a longer period of time than the average male. For married women, this also highlights the value of seeking professional financial guidance, especially when facing estate issues such as widowhood or divorce. Women who have experienced divorce or widowhood have more options when claiming Social Security benefits and determining retirement plan benefit strategies. In any case, you will likely need to adjust to a new financial reality.

Among estate planning topics women should consider are:

Develop a financial plan that incorporates your individual needs. For example, will you be able to generate sufficient income to maintain your desired lifestyle throughout retirement? In addition, how will you manage the expenses if you require long-term care, which can run as much as $100,000 a year?

Plan for potential incapacity. This can happen to anyone at any time, but the risk does increase as you grow older. It is therefore important that documents such as your healthcare directives are in order and updated; these would include your will, durable power-of-attorney, and a do-not-resuscitate order.

Ensure your beneficiary designations are up to date on all policies. This includes insurance policies you own as well as policies your spouse or partner own.

Consider the most beneficial strategy to claim Social Security benefits. This can be rather complex, especially when factoring in your potential longevity and/or coordinating your benefits with those of your spouse or ex-spouse.

A professional financial advisor can provide valuable assistance with these issues and more. Even if you feel comfortable managing your finances on your own, a trained advisor can offer support and direction as the financial world grows more intricate and complex with the introduction of new products and as legislative changes occur. When selecting an advisor, consider someone who operates in a fiduciary capacity (meaning they prioritize your interests) and offers comprehensive planning services, rather than just portfolio management. It is also important to select a financial advisor with whom you are comfortable and understands your needs.