Statistically Speaking
Every adult should have an estate plan that attends to both their own needs in the event of a decline, and tends organizes asset distribution upon death. However, statistically speaking, it’s even more important for women to have care and financial arrangements in order….
Alone and Living Longer
Facts underscore the high priority women should place on care and estate planning; women, tend to live longer than men, and whether married or single during their adulthood, women are likely to live at least some of their later years alone:
Men born in the United States in 2021 were expected to live, on average, to age 73.5. Meanwhile, women born in 2021 were expected to live 5.8 years longer to an average age of 79.3.The lifespans for both genders had been rising for decades — in 1900, the average life expectancy for men was 46.3 and 48.3 for women. Life expectancy for both genders recently peaked in 2019, when men were expected to live to age 76.3, on average, and women to age 81.4. COVID-19 then became a leading cause of death, contributing to men losing 2.8 years and women losing 2.1 years from their average lifespans by 2021.
Attorney Jeffrey Verdon of Falcon Rappaport & Berkman LLP offers even further reasons why it’s wise for women in particular to roll up their sleeves around an estate plan that is in tune with “their specific needs and circumstances…”:
For women who have male partners, statistically, women have a longer life expectancy than men. This means they are more likely to outlive their spouse or partner, potentially becoming solely responsible for their estate. They need to ensure their assets and healthcare wishes are taken care of in the event of their incapacitation or passing.Many women are the primary caregivers for children and elderly family members. As a result, it’s crucial to designate a guardian and create contingency plans for their loved ones’ care in their estate plans. Women may have different financial and career trajectories than men. These factors can affect their retirement savings, investments, and overall wealth. To that end, women should focus on the division and distribution of their assets.
Life Before Death: Power of Attorney
Though estate planning tends to be associated with arrangements to gift assets, a solid plan actually begins with making arrangements for our own needs in the event we experience a capacity decline and need to trust someone to act in our best interests. Attorney Paul W. Norris of Stark & Stark explains that while we have the capacity to make decisions, executing a power of attorney (POA) is a very wise move:
A power of attorney is a written instrument pursuant to which the principal authorizes another individual to undertake actions on their behalf which typically involves their finances, real estate, or other real property….People may also execute a health care power of attorney which allows another to make decisions concerning their health care….At the time the power of attorney is executed, the principal must be competent in order to enter into the arrangement whereby they grant a third party the discretion which is set forth in the instrument. The…discretion allowed in a power of attorney, can vary greatly and is entirely dependent upon what the person issuing the power of attorney is willing to grant….. Once the power of attorney is executed, it can be utilized while the individual remains competent, or it can take effect should the principal become incompetent.
Similar to a POA, a health proxy and living will appoint decision-makers for medical decisions. With designees in place for the financial and medical stewardship of our affairs should we experience a decline, it’s a good idea to go on to other aspects of estate planning, and attorneys offer these pointers:
- A will outlines the distribution of assets, provides the designation of guard-ians for minor children, and articulates the names of an executor to manage the estate.
- Trusts provide more control over the distribution of assets and can help minimize taxes and protect privacy.
- It is crucial to regularly review and update beneficiary designations on retirement accounts, life insurance pol-icies, and other assets. For example, there are occasions when a former spouse is not removed as the former beneficiary, and the new spouse is denied benefits.
- Women who own businesses should create a plan for transferring ownership in the event of their passing or incapacitation
Consider A Professional Fiduciary
No estate or care plan is complete without the appointment of the fiduciaries entrusted to administer it. Depending on location, circumstance and the details of plans, fiduciaries may be referred to by a variety of specific names, such as personal representative, trustee, guardian or conservator. Underlying the details and tasks each of these fiduciaries becomes responsible for, is a legal responsibility to put the affairs of the estate and its beneficiaries ahead of personal interests. Fiduciaries must always carry out their duties with loyalty, care, good faith, confidentiality and prudence.
When it comes to selecting fiduciaries, it’s common to appoint a relative or friend, though keep in mind that sometimes appointing a professional fiduciary makes the most sense, and can relieve loved ones of excess worry and stress. For those aging solo, as more people are, the services of a professional fiduciary can also be reassuring. Because all fiduciaries have significant, legally binding responsibilities, a type of bond, generally referred to as a fiduciary bond may be required and serves as a guarantee that duties will be carried out in accordance with the law, and in the best interests of beneficiaries.
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