Why Estate Planning is Important for Women
Despite your age, gender, or wealth, estate planning is vital for everyone. That being said, estate planning may be more important for women than it is for men.
1. Women tend to live longer than men
Recent statistics show that, on average, a woman will outlive her husband by seven years. Additionally, the average groom is 2.3 years older than his bride. That means women need their assets to last longer than men do. It also means that wives are probably going to outlive their husbands, so they will likely inherit their husbands’ estates, and they will probably have the last word about the final disposition of assets going to the couple’s heirs.
2. Women tend to earn less during their lives than men
Full-time working women earned only 81.2 cents for each dollar a man earns, according to the latest statistics. Also, women work fewer years than men in order to care for home and family, further reducing their ability to save. Simply put, women earn less money over their lifetimes than men. Because women must plan to make fewer dollars last longer, it’s important for them to get sound retirement planning advice.
3. Most custodial parents are women
Approximately 84% of custodial parents are women. Women who are parents of young children need to plan for the continued care of those children if something unforeseen should happen. They also need to determine who will handle the children’s property until they are older.
4. Women are business owners
Women own more than 8.6 million businesses in the US, generating revenue of $1.3 trillion each year. Women who are business owners need to protect their assets and plan for the succession of their businesses.
5. Women are professionals
Women make up 57.5% of professional occupations. Women in professions with high litigation risks like medicine, law, and real estate, can benefit from asset protection planning.
6. Women are wealthy
Women control $14 trillion in assets and three-fourths of the financial wealth in the United States. It’s important for women to get sound investment, charitable giving, and tax planning advice. Estate planning is the only way through which a woman can ensure that this wealth is distributed according to her wishes upon her death.
They say men are from Mars and women are from Venus, but is this true when it comes to estate planning? Absolutely. Women should make special considerations when planning their estate. Most importantly, due to a woman’s longer life span, she will need to plan for a longer retirement and more prolonged medical needs. Speak with Elizabeth at Westby Law about a customized estate plan for your needs.
Critical Steps Women Must Take When Preparing For Divorce
I talk with women about divorce on a daily basis. While there is a broad spectrum of how women deal with the emotional side when facing divorce, I have found there is one commonality … the feeling of being overwhelmed. Whether she was the one who initiated or she was blindsided by the news, that one decision brings about tremendous change that shakes the core of women’s lives.
It is most damaging when women are so enthralled in emotion (grief, sadness, anger) they make hasty decisions that can have an extreme affect on their lives. One must gain control in order to get through the legal and the emotional process. There simply is no avoiding either one.
So where do you begin? In order to gain control, I have found there are a few steps to take that will put you in the best possible position. None of these are very exciting, but I promise if you do these steps you will save yourself a ton of time, money, and heartache on the back end.
1. Collect your financial information.
This is so important it must be step one. Gather all of your bank account information, tax records for the last three to five years, retirement accounts, life insurance policies, deeds, titles, securities, bonds, notes, stocks, in short – anything that looks like it could mean money get the information related to that item. Do NOT keep these records in your home or your vehicle. Take copies to someone you trust (parent, relative, friend) or place them in a safety deposit box. Bottom line, you do not want your spouse to know you have this information or have access to your collected records.
2. Open a mailbox at the post office and separate email.
This item brings such a relief of mind for my clients. Knowing that your mail is safe. Knowing that you can receive confidential mail during this process, in addition to your new bank and credit card statements. You know you won’t miss something from the courts, your attorney, your doctor or even a card from a friend. A small additional bonus of getting a post office box is that the mail gets there faster. I also encourage my clients to get a new email address, because often times these accounts are either shared or the spouse knows the password. Start fresh and that way everything related to this process is in one place.
3. Start saving money.
I meet too many affluent women who cannot access funds because their husband controls the family accounts. This makes affording professional services and day-to-day expenses a real challenge. Additionally, men commonly use the tactic of financially squeezing women into an undesirable settlement. One thing is guaranteed – the process will take longer and cost more than you anticipate. Get ahead of it and have your own money.
4. Open a new checking and savings account.
You must immediately open your own accounts at a different bank than all of your marital accounts. Take half of the funds out of the joint accounts and place that into your new checking and savings account. This is perfectly legal when preparing for divorce because half of that money is yours. Keep your money liquid; do not place it into any time accounts because you need to have access to your money.
5. Open a new credit card in your name only.
This will not only help cushion your living expenses, but it will also assist you in building your own credit. If you rely on your husband’s income, or make substantially less, do this before filing for divorce because you may need his credit to qualify for the credit card.
6. Get a copy of your credit report.
Immediately get copies of your credit report so you can monitor and make sure your husband isn’t using marital assets to supply gifts to his girlfriend or dissipating other marital assets. Additionally, this will give you the opportunity to resolve any credit disputes. If you think your husband may try and borrow money in your name, you may want to consider a credit monitoring system.
7. Change beneficiary designations.
On life insurance policies, IRA’s, etc. Most 401K plans will not remove a spouse without their consent so do a little homework before acting. You must be careful when changing the beneficiary designations, contact your insurance or brokerage company so they do not automatically send your spouse notifications.
8. Change your will, medical directives, and living will.
While it is unlikely you would die before the divorce is final, you certainly want to make that change to ensure your soon-to-be ex doesn’t inherit all of your assets if something were to happen. Additionally, you do not want him in charge of your health care decisions or financial decisions if you were ever in an accident.
9. Take inventory of all personal property (non-marital).
This is property that was yours before the marriage, including any inheritance. There are some exceptions; if you have “co-mingled” the separate property with the marital property then it will be considered a part of the marital property.
Taking these steps will bring about peace of mind, direction, and empowerment.
You can do this. It looks like a lot but it is minimal in comparison to what you will go through if you do not take these steps. Remember, “planning is as natural to the process of success, as its absence is to the process of failure” – Robin Sieger.
In Loco Parentis
There are many ways to establish authority and gain custody over a child that is not yours. One option is “Non-Parent Custody” also known as in loco parentis
In loco parentis is Latin for “in place of a parent.” Such is a person essentially treated as a parent by the child, and who has formed a meaningful relationship with the child for a substantial period of time.
In Arizona, a non-parent can request custody by alleging, among other things, that it would be significantly detrimental (harmful) for either of the child’s legal parents to have custody. This is a difficult burden to prove and sustain since it is typically viewed that parents have a fundamental right to the care, custody and management of their child(ren). Grandparents, step-parents, relatives and non-relatives should be prepared to prove that awarding custody to the legal parent(s) is not in the child’s best interest and would be substantially detrimental to the child.
In order to request visitation (as opposed to custody or primary placement) the non-parent must establish that the visitation is in the child’s best interest, as well as other criteria.
In 2013, the Grandparent’s Visitation statute was merged with the Arizona In Loco Parentis statute. The court has recognized that many families are often non-traditional. The idea is to allow a third party (Aunt, Sister, Grandparent, Cousin, etc.) to petition the court for what were traditionally reserved for parents.
The burden is high in order to be successful, and of course ultimately the court is concerned with the best interests of the child. However, in many instances this right is used to protect children and keep them in the family or with someone the child considers family and out of foster care.
To learn more information about your case that involves obtaining a child that is not yours, please contact Westby Law at 602.686.6375.
9 Life Changes That Require An Estate Plan Review
Updating your estate plan is probably something you don’t think about too often. It actually is probably the last thing you think about, but when it matters, it is the most important thing.
As painful as it is to consider, estate plans are critical. If anything happens to you, it’s important to know your loved ones are taken care of and your wishes are honored. Throughout life, those last wishes change with the major events you go through.
Here are nine of the biggest life changing events that signal when you need to update your estate plan.
1. Marriage
Did you know your spouse may not be the sole beneficiary or heir of your estate? Depending on the state where you live at the time of your death, who is entitled to benefit from your estate after your death is up in the air without a solid estate plan. For example, stepchildren do not inherit from step parents by default — in most, states they have to be specifically named in an estate plan.
To ensure your spouse, or anyone else gets particular belongings from your estate, you must outline it in your plan. Whenever you get married, take a look through the dispositive provisions of your estate plan and make any necessary adjustments.
2. Remarriage
Generally, a marriage license does not mean your new spouse will receive your entire estate after your death. Instead, the laws of most states provide that your new spouse will share in your estate assets in conjunction with your children from a previous marriage unless you change this default through a will, living trust, or other estate planning vehicle.
If you get remarried, it’s important that you update your estate plan to include your spouse and his or her stepchildren, if any.
3. Divorce
Once a divorce decree has been entered by a court, the laws of many states automatically disinherit a former spouse. Still, if you included provisions in your estate plan that give specific property to your former spouse by name, you may need to change your plan in order to disinherit him or her going forward.
4. The Birth of a Child
Congratulations! Your life has forever changed by welcoming a little bundle of joy into the world. This change is worthy of updating your estate plan to protect your child or children.
Updating your estate plan after the birth of a child goes way beyond your assets. The first order of business in an estate plan is to nominate guardians to care for your children in case something happens to you. If you don’t, you could risk having your children cared for by guardians you didn’t approve.
If you adopted a child, the same rules apply. You will need to designate a guardian to care for your child as well.
5. The Death of a Beneficiary
The death of a loved one is one of the hardest things you’ll ever experience. Chances are, updating your estate plan is far from your mind. Still, it’s an important step that must not be forgotten.
If your beneficiary dies, you will need to ensure your estate plan does what you want. For example, if your beneficiary had children and you want his or her portion to go to the children, you oftentimes must specify that. Instead of declaring that basis for the allocations of your property is “per capita”, often times you must specify that the basis for allocation should be “per stirpes,”.
6. Illness or Disability
One of the most overlooked aspects of estate planning is illness or disability. Who will care for you if you become incapacitated? There are many decisions that must be made regarding your care. Articulating your desires before you become ill, disabled, or incapacitated, can save everyone heartache down the road.
On the other hand, what would happen to your estate if you passed away and one of your beneficiaries became incapacitated? Receiving money from your estate could actually harm them instead of help by causing him or her to be ineligible for needs-based government care programs.
Plan for both of these by updating your estate plan before you become incapacitated or in the event your loved one becomes disabled or ill.
7. A Substantial Increase in Assets or Income
Did you get a significant increase in pay? Did you buy a new home worth significantly more than your previous home? Having more money or assets is a positive thing until you and your beneficiaries become subject to federal or state estate taxes or to potentially costly estate administration proceedings.
By structuring your estate properly, you could minimize these taxes, keep more money in the your pockets, and avoid a potentially costly estate administration.
8. Moving to Another State
Each state has their own unique set of estate laws. Although many of them are fairly consistent, the small changes are enough to make a difference in how your estate plan is executed when needed. Upon moving to a new state, have your estate plan reviewed by a lawyer. This way, you’ll have confidence that the provisions of your estate plan will have the same effect in your new state.
9. Changes in the Law
The law is constantly fluctuating. Both federal estate tax laws and the trust and probate laws of states change on a regular basis. In addition, HIPPA requirements are consistently being updated. Whenever this happens, your estate plan is at risk. Check it over to make sure everything is set up the way you want it to be.
In the end, what matters most is that you have a plan. Remember that estate planning is not for the wealthy, it’s for the living.
Taken from: http://www.huffingtonpost.com/steve-cook/9-life-changes-that-require-an-estate-plan-review_b_7985628.html