WOMEN FACE UNIQUE ESTATE PLANNING ISSUES
Planning for retirement, aging, end of life care, and distribution of one’s estate is important for every individual, regardless of gender. But women face unique issues which make it essential for them to engage in estate planning now and seek out the resources they will need to overcome these challenges. These issues include:
Women have longer life expectancies than men. Because women tend to live longer than men, they must prepare themselves for living alone. And they won’t be alone during one of the easier times in their lives. Most women will face life alone at a time when their world is being turned upside down. During the years that women may begin to suffer a terminal illness or debilitating disease, living on a reduced income, needing help with activities of daily living, and making some of life’s most complicated decisions, many of them will be alone. One of the most common planning mistakes women make is failing to prepare for being on their own.
Lots of women lack experience with financial matters. Historically, men are more likely to be the decision makers on matters such as investing, mortgages, major purchases, life insurance, taxes, and business interests. For women that have left these issues to their husbands throughout the marriage, it is common to feel overwhelmed by the pressure of handling such matters alone. Some women really want someone else to make these decisions for them, whether that means turning decision making over to an adult child, sibling, or a professional. If a woman does not have someone that can help with financial decisions, she is more likely to run out of money or experience other financial consequences.
Women need more money for retirement, long term care, and unexpected medical expenses. Because women tend to live longer, their expenses in retirement are greater. This means they need more money set aside for living expenses, assisted living or nursing home care, and medical costs. If women fail to develop a strong interest in budgeting and investing, they may find themselves without enough money to live in retirement.
Women face more pressure from children and other heirs. Mothers have a natural instinct to take care of their children. In these tough economic times, some mothers are being pressed to be more generous with adult children. Because women are more likely to be the surviving spouse, they are frequently left in the unenviable position of deciding how to distribute the family’s property. Women often become widowed without an estate plan in place. More frequently than men, women face substantial emotional pressures from children and other family members for loans or bequests, often to their own detriment.
|
