March 8th marks International Women’s Day, a day dedicated to celebrating ALL the achievements of women worldwide. It is a moment to recognize the progress made in advancing gender equality and to acknowledge the vital contributions of women in every aspect of society. This year, as we commemorate Women’s Day, let us shed light on something we see in our conference room all the time: Women calling the shots.
Call it OCD, call it Type A Personality, call it motherly instinct; women tend to make the final decision on when it is time to plan ahead. By plan ahead we mean plan for growing older, make sure your minor children will be taken care of, and make sure that adult children or other beloved family members get their inheritance. In other words, women provide peace of mind to the family, so that all family members can go about their day. Our law firm can help achieve that goal.
Surprisingly, (or not surprisingly), studies have shown that women are often more prudent and diligent in financial planning, prioritizing the long-term stability and security of their families. A 2023 study by U.S. News and World Report, compared how men and women differ across 10 financial fronts. Presented herein are several compelling discoveries:
- Annual Income – On average, men make $10,000 more annually.
- Homeownership – Single women are 10% more likely to own a home than single men.
- Savings – The balance in men’s savings accounts are double that of women (it is ok – shopping qualifies as a hobby).
- Investments – Very close, but men tend to focus on investments only slightly higher than women. The report also showed women earn more from investments than men. Single women earned an average of $1,836 annually from interest, dividends, rental income and other property income, while single men averaged $1,574.
- Entertainment Spending – Single men tend to spend 25% more on entertainment costs than single women.
This Women’s Day, take the time to think about the future and how it would affect the family if you were no longer around. It may not compare to a spa day, but getting your estate plan in order will provide the type of security that all mothers (and fathers) want for their family.
An estate plan does not need to be complicated. Estate planning simply means sitting down with an attorney and writing your wishes on paper and then putting those wishes into action. You will write your wishes regarding who gets your “stuff.” By “stuff” we mean assets such as real estate, cars, jewelry, money in bank accounts, proceeds from life insurance policies, pension plans, etc. You will also write who you want to properly carry out those wishes once you are no longer here.
Common estate planning documents often start with a Last Will and Testament (“Will”). A Will allows you to name specific beneficiaries (those who will inherit) and exactly what they should receive upon your death. A Will also allows you to name guardians if you have any minor children (under 18 years of age). If the family dynamic is a bit more complex, such as second or third marriages with children from prior marriages, or multiple real estate investment properties, you may opt for a Revocable Trust, also known as a Living Trust.
A Living Trust can be created and changed, updated, or amended during one’s lifetime because the creator of the Trust will be the Trustee. Once the Trustee passes away, whoever is nominated as back-up Trustee “steps into your shoes” and distributes assets to the listed beneficiaries. Distribution of assets by way of a Living Trust entirely bypasses the probate process. This means that upon one’s death, all assets in the Trust pass to the beneficiaries through the Trust, and not through any court process. Trusts can also provide beneficiaries with asset protection. Upon inheriting any monies or assets through a Trust, the beneficiary enjoys financial protection from future creditors, divorces, and bankruptcy. This is typically why a Trust works best for those in blended families.
Many people think about estate planning in the context of someone dying, but it is equally important if you become sick, injured, or incapacitated and cannot make decisions for yourself. Having a Durable Power of Attorney for financial and legal matters and a Health Care Surrogate for medical decisions will ensure someone can manage your care and finances if you no longer can.
- Durable Power of Attorney– A crucial legal document that functions while you you are alive and allows a person (the “agent”) to “step into your shoes” if you become mentally or physically incapacitated. The agent will be able to make legal and financial decisions and conduct transactions on your behalf. The Power of Attorney document ends when a person passes away. At which point, the Trust or Will should kick in to dictate the terms of how to distribute your assets.
- Health Care Surrogate & Living Will–Also known as a Health Care Proxy, allows you to name someone (the “agent”) that will make health care decisions in case you can no longer make them yourself. Such decisions include consenting to certain medical procedures, seeking a second opinion, obtaining medical records, or transferring the person to a different medical facility.
No matter how big or small your net worth is, you need expert help to turn it into a legacy. Start calling the shots on your future with a free phone consultation by contacting OC Estate & Elder Law at (954) 251-0332 or info@ocestatelawyers.com. Our attorneys are fluent in English, Spanish, and Russian.
