Many women tend to neglect the estate-planning process. This is a shame, because estate planning is an important step in protecting your wealth and ensuring your loved ones’ wellbeing.
If you have not yet planned your estate, now is the time to start. Many women feel overwhelmed when beginning the estate planning process, but this is not necessary with a few key strategies. To help you get started, here are five of the best strategies that women can use for planning an estate.
Consider a prenup
It’s not uncommon for women in their 40s, 50s and 60s to get divorced or remarried. One way to preserve your wealth for your children and relatives is through a prenuptial agreement. Without a prenuptial agreement, your estate could be left entirely to your husband, leaving your children and other family members with little to nothing.
Decide how to distribute your assets
If you should pass away without a will, your property will be distributed by a court during the probate process. This means that your valuables could go to recipients you would not have chosen yourself. Therefore, you should carefully choose your beneficiaries and consider how to distribute your assets when planning your estate.
Designate your fiduciaries
You will not be the only person to handle your estate. There will be other people involved in processing your estate after you pass away, and you should select them wisely. You will need to select an executor to manage your will, trustees to handle your assets, guardians for your minor children and an attorney to address any legal issues.
Think about taxes
Even after you pass away, your wealth may still incur taxes. All estates are subject to income tax. If your estate is eligible for estate tax, there are steps that you can take to minimize the impact on your assets. Consult with a financial adviser or lawyer who can offer tax-planning solutions for your estate.
Tackle your estate now, not later
Women have a longer life expectancy than men. This means that many wives will outlive their husbands, often leaving them to create a will alone. One of the biggest mistakes to be made in estate planning is putting it off until you are elderly. Rather than procrastinating, take the initiative to plan your estate now to provide peace of mind for the future.