Most financial planners will advise you of the importance of proper estate planning to ensure the smooth transition of management of your affairs should you become incapacitated and after you’re gone, transfer of your assets to your beneficiaries. An experienced attorney will determine the documents needed to craft and implement your wishes. However, many professionals do not pay enough attention to the fact that estate planning often involves unique considerations and challenges for women. From longer life expectancies to historical and societal inequality, there are several key aspects that professionals and they women they serve should be aware of when planning estates.

Longer Life Expectancies and Financial Security

On average, women live longer than men, which means they need to take into account a longer retirement period. This sort of planning requires constant recalibrating over the years to ensure assets are managed to last a woman’s lifetime.

Although women’s rights have come a long way, women are still more likely than men to experience periods of financial instability due to various factors. For example, women are disproportionately burdened with career interruptions due to caregiving responsibilities in addition to lower lifetime earnings. Estate planning should account for these potential financial challenges by establishing robust retirement plans and considering strategies to maximize savings and investments.

Studies continue to show that women feel underappreciated by their professional advisors. They feel disrespected, ignored, and get the sense their advisors don’t understand their strong desire for clarity, education, safety, and security. By understanding and addressing these considerations, financial planners can better serve the specific needs and preferences of female clients while building strong, lasting, relationships based on mutual respect.

Healthcare Planning and Long-Term Care

Longer life expectancy also means there’s a higher chance long-term care will be required. This type of care is costly and risks significant financial burden. Estate planning can include long term care planning as well as healthcare directives, powers of attorney and living wills, to outline preferences for medical treatment in the event of incapacitation. Because women usually outlive men, this should be taken into consideration when working with an attorney and financial advisor to ensure asset protection and access to quality care.

Estate Tax Implications

There is a lot of discussion regarding the sunset provisions of our current federal estate tax laws (death tax) at the end of 2025. For 2024, only the portion of an estate exceeding $13.61 million (per person) will be subject to the federal estate tax. With proper planning however, some of the potential tax exposure  can be avoided. State laws regarding death tax laws vary by jurisdiction. For example, California has no death tax but other states, like Massachusetts do. 

It is important to create estate plans that are flexible and can absorb changes in the tax landscape. By working with a financial planner and an attorney keyed into female-specific issues, women can plan accordingly to minimize tax liabilities. This may involve gifting strategies, charitable giving, or establishing trusts to preserve assets and maximize the value passed on to beneficiaries. Whatever the advice, keep an eye on flexibility and the unique considerations women face.

Asset Ownership and Control

Historically, women have faced barriers to asset ownership and financial independence. While significant progress has been made, gender disparities in wealth and income still exist. However, that is rapidly changing as females outlive their male Baby Boomer counterparts and begin to inherit wealth – both from their parents and their spouses.

Estate planning provides an opportunity for women to assert control over their assets and ensure that they are properly managed in event of incapacity and then distributed according to their wishes. This may involve updating beneficiary designations, creating trusts, or establishing joint ownership arrangements with spouses or family members.

Even the Most Solid Plan Requires One Last Step

Once you have worked with the proper professionals, established plans that meet your goals, and implemented those plans, the last step is to ensure your wishes are honored.

Some of the very best attorneys still utilize outdated technology for estate planning records. Paper and ink are an enormous risk in a digital age. Don’t expose your advance planning to lost or destroyed documents. 

There is a solution – the first digital registry for trusts. Digitally registered trusts allow for instant authentication and management of your trust. Eliminate doubt and reduce dispute and secure your trust. 

One Shoe Does Not Fit All

It is critical that women receive estate planning advice that considers their unique circumstances. By working with financial planners and attorneys who recognize these issues, women can properly plan for these unique challenges. By further protecting those plans via digital registration, women can ensure that their wishes will be honored, their loved ones are provided for, and their legacies are preserved for future generations.

The article was written by Matt Everson, CCO –  illuminote