Women are the traditional keepers of the family home. Today, many women are often also working and raising families – and often as single working parents. Moms are used to planning for the unexpected. But unfortunately, too often women fail to plan for a future when they cannot care for their families. No one plans to die young or unexpectedly – but it happens. Estate planning can help women take control of their future and protect themselves and their families in case of their unexpected death or if they become incapacitated. Women have unique concerns in estate planning – due to longer lifespans and lower earning power, women have more to lose and put their families at risk if they are financially unprepared. Here are 3 common estate planning mistakes women make.
1. No Disability Insurance
Whether you’re a stay-at-home mom or in the workforce, disability insurance is an important tool to protect your family if you’re no longer able to work. Statistics show that over 50% of the population becomes disabled before they turn 65. Typically the older you are when you buy disability insurance, the more expensive it is. The younger and healthier you are when you buy disability insurance, the easier it is to qualify for a policy.
2. Not Updating Your Estate Plan After a Divorce or Death
You should regularly review your estate plan every 3-5 years, but it is vital to update your estate plan after a divorce, death, birth or another major life event. Otherwise, your assets or health care decisions could be in the hands of someone you no longer want to make those decisions in the event you are incapacitated or die.
3. Create a Business Succession Plan
More and more women are entrepreneurs and own small businesses – 40%of US businesses are women-owned. Whether a woman business owner has a staff or is a solo-preneur, your estate plan should include a short-term and long-term plan for how your business will function in the case you are unexpectedly incapacitated or die. A well-written, legal business succession plan will protect everything you’ve worked so hard for in the future.
It’s difficult to think about and discuss end-of-life decisions, but its important that you create an estate plan to protect your loved ones when you are no longer able to. It is equally important that you tell your family your wishes to avoid stress and conflict in the future. Tell your family what you want, how it should be done, and where to find the legal documents that you’ve created to protect their future.
Women have unique concerns in estate planning – due to longer lifespans and lower earning power, women have more to lose if they are financially unprepared. Prepare for the future by contacting an experienced estate planning attorney at Estate & Probate Legal Group in Lombard Illinois at 630-800-0112.