Though we associate estate planning with death, the reality is that it’s mostly about preparing to live a good, long life, even as we experience age-related declines. It’s especially wise for women to attend to estate planning on a parallel path to retirement planning, given the realities of life expectancy trends. Read on for guidance.
Personal Autonomy
When we feel healthy and alive, it’s of course hard to make decisions about our living and care arrangements for older age, but being proactive is the best way to ensure autonomy and independence well into our later years. As attorney Kyle Krull of Harvest Law KC, points out: “Although aging can be intimidating and challenging, preparing for the future can help women maintain personal autonomy, financial security, and access to quality care. Estate planning is necessary to secure legal protections for finances, healthcare, and asset distribution.” To help more women onto the path of care and estate planning, Krull offers these suggestions:
Most women will require some type of long-term care during their lifetimes. Without long-term care planning, women can quickly deplete savings while paying for nursing facilities, assisted living, or home healthcare. Making advanced preparations through long-term care insurance can help. Alternatively, elder law attorneys can help those who might require Medicaid planning to apply and qualify for public assistance benefits.
Incapacity is a key component of estate planning. Those who do not have powers of attorney for healthcare or financial management could subject themselves…to court control…if they are deemed incapacitated….What can women do to avoid this outcome? They can designate a trusted individual to serve as a healthcare agent to make medical decisions if they cannot do so themselves. Women can also name an attorney in fact (not be confused with an attorney at law) in their financial power of attorney to manage investments, bills, and other property should they become incapacitated.
After putting designees in place for financial and medical stewardship in the event of decline, it’s wise to progress into other aspects of estate planning, and attorneys offer these pointers:
- A will outlines the distribution of assets, provides the designation of guardians 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 policies, 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
Good To Know: Fiduciaries?
Among key decisions made during care and estate planning is the appointment of the fiduciaries entrusted to administer the plans. 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. For those aging solo, the services of a professional fiduciary can be especially reassuring. All fiduciaries have significant, legally binding responsibilities, so a type of bond, generally referred to as a fiduciary bond, may be required. A fiduciary bond serves as a guarantee that duties will be carried out in accordance with the law, and in the best interests of beneficiaries. Colonial Surety makes it easy and speedy for fiduciaries in every state to obtain their bonds: simply: get a quote online, fill out the information, and enter a payment method. Print or e-file the bond from anywhere.
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