Thursday, July 01, 2010
5 Things Adult Women Should Know About Houston Estate Planning
As a Houston estate planning lawyer, I can’t stress enough the importance of making an estate plan to systematically and comprehensively protect the people you love following your death or incapacity.
And while woman in general are attune to this “theory” of estate planning as the “nurturers” and even the “protectors” of the family unit, many are simply unaware of its absolute necessity in safeguarding their children—and their livelihood—should something unexpectedly happen to them and/or their spouse.
This is unfortunate, especially considering a recent statistic published in Forbes Magazine that reveals 42% of women age 65 and older are widowed. Essentially, that means in the absence of proper estate planning, 42% of women in this country will lose some portion of the money they were relying on to support themselves through the remainder of their lifetime to taxes, claims from children from prior marriages, legal fees, medical bills, etc.
Yet all of this can be avoided with the implementation of a few basic estate planning tools and strategies designed to protect women and their children financially following the death or incapacity of a loved one.
Of course I can’t cover all of these tools and strategies in this basic article, but I will leave you with 5 important considerations designed to help you lay the foundation for your unique Houston estate plan:
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Figure out who you trust to make important medical and financial decisions on your behalf if something happens to you. Typically this is a family member or close friend that you trust to respect your wishes or handle your affairs if you are incapacitated. Eventually you will appoint this person to serve as your legal power of attorney if called upon in a time of need.
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Ponder who could raise your children if something happened to you and/or your spouse. I encourage you to think outside the box and don’t limit yourself to the people who are “financially” able to assume the role as guardian. With proper estate planning, YOU will leave enough money behind to support your children, thus giving you more options as to who can care for your kids in your absence.
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Do you and your spouse have life insurance? This is a critical consideration in making sure the surviving members of your family are provided for should you or your spouse unexpectedly pass away.
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Do you have cash in the bank? If not, consider opening a joint account with your spouse dedicated to covering immediate expenses should one of you die or become incapacitated in an accident. This will protect you financially if there is any delay in receiving your inheritance or federal aid.
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Can you minimize estate taxes by pruning your assets? This is an important consideration, as the federal estate tax is coming back next year at a roaring 55%. So rather than forking over your hard earned cash to Uncle Sam, it’s preferable to start gifting your assets or shield them by way of a trust if it makes financial sense to do so.
Of course there are a number of other questions Texas women must consider as it relates to estate planning, but this brief checklist is a great start.
However, for those women who want to know without a shadow of a doubt how much protection (or lack of protection!) they have should something happen to them or their spouse, call our office and schedule a FREE Lifetime Legacy Planning Session.
Together in this session we will review your current situation (or plan if you have one), your assets and your end-of-life wishes to determine whether or not your family is truly protected should something unexpectedly happen. I will also teach you how to maximize your current assets and inheritance without sacrificing the ability to qualify for long-term care assistance in the future.
Simply call (281) 218-0880 and mention this article to redeem your free session. These appointments are limited to 10 sessions per month so call today!