Women face unique financial challenges – longer life expectancies, lower lifetime earnings, and career breaks for caregiving. These factors make estate planning essential to ensure financial security and protect loved ones. Here’s what you need to know:
Protecting Your Children with a Kids Protection Plan
If you have minor children, it’s crucial to legally name guardians in case something happens to you. A Kids Protection Plan allows you to:
✔ Name both short-term and long-term guardians.
✔ Provide clear instructions for how your children should be raised.
✔ Ensure trusted individuals can make medical decisions if you’re unavailable.
Without legal documentation, the court may decide who will care for your children, which may not align with your wishes.
Wills vs. Trusts: What’s the Difference?
Both a will and a living trust help transfer assets after death, but they serve different purposes:
✔ A will takes effect after death. It names guardians for minor children, directs asset distribution, and can create trusts for beneficiaries. However, a will goes through probate, which can be a lengthy and costly court process.
✔ A living trust takes effect while you’re alive and continues after death. It allows you to manage your assets, avoid probate, and plan for incapacity. If you own property in multiple states, a trust can prevent the need for probate in each state.
Having both a will and a trust ensures your wishes are followed while minimizing legal complications for your loved ones.
Powers of Attorney: Who Will Make Decisions for You?
Unexpected illness or incapacity can happen at any time. Without the right legal documents in place, your family may have to go through court proceedings to gain control over your finances and medical decisions. Every woman should have:
✔ Financial Power of Attorney – Appoints someone to handle your finances if you’re unable to do so.
✔ Healthcare Power of Attorney – Allows a trusted person to make medical decisions on your behalf.
If you’re married or in a partnership, ensure your spouse or partner also has these documents in place—if something happens to them, you’ll be the one handling everything.
Life Insurance: Ensuring Financial Security
✔ If you rely on your spouse or partner financially, they should have enough life insurance to support you for the rest of your life.
✔ Don’t own your own life insurance policy – if you do, it may be subject to estate tax when you pass. Instead, have it owned by a spouse, a family member, or an Irrevocable Life Insurance Trust (ILIT) to shield it from estate taxes.
Keep Beneficiary Designations Up to Date
Retirement accounts, such as IRAs and 401(k)s, do not pass through a will or trust. Instead, they go directly to the named beneficiaries. Review and update these designations regularly to ensure your assets go to the right people.
Managing Cash Flow in Case of a Spouse’s Death
If your spouse passes away, you may not be able to access their bank accounts immediately. To avoid financial hardship:
✔ Keep enough cash in a joint account to cover household expenses.
✔ Ensure bills, mortgage payments, and other financial obligations can be managed without delays.
Estate Tax Planning for Married Couples
As of 2025, a surviving spouse can inherit any unused portion of their deceased spouse’s estate tax exemption – potentially shielding millions from estate taxes. However, this transfer must be claimed on an estate tax return after death, so it’s critical to consult an attorney shortly after a spouse’s passing.
Additionally, married couples can take advantage of “gift splitting,” allowing them to maximize tax-free gifts to children and loved ones during their lifetime. This can be a powerful strategy to reduce estate taxes and pass on wealth efficiently.
Secure Your Future with a Life & Legacy Planning Session
Estate planning isn’t just about protecting assets – it’s about securing your financial future and ensuring your loved ones are taken care of in the way you want. The best way to get started is by scheduling a Life & Legacy Planning Session with an experienced estate planning attorney.
During this session, we’ll:
✔ Identify the best strategies for your specific situation.
✔ Ensure your assets are properly protected.
✔ Give you peace of mind knowing your loved ones are cared for – no matter what the future holds.
Don’t wait until it’s too late. Take control of your financial security today.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.