Forbes.com has revealed the “Nine Things Women Should Know About Estate Planning” and here at German Law Group we want to pass along this valuable information.
1) Caring for yourself in #1: It is so important to name someone you trust to act on your behalf should you become incapacitated due to illness or disability. A general durable power of attorney and a health care power of attorney can help take care of these important issues.
2) Everyone has an estate: Large or small, everyone has an estate. An estate plan is for everyone!
3) A Will & Living Trust ARE NOT the same thing: Though both are a method of transferring assets upon your death they have key differences. A trust can be used in life and death, while a will does not take effect until you pass away.
4) Trusts aren’t only for the rich: You don’t have to be a millionaire for a trust to be useful to you. Click here to read about more benefits of living trusts.
5) Spouses get special tax breaks: Assets that you inherit when your spouse passes away ARE NOT taxed. This is called the unlimited marital deduction.
6) Tax Planning for widows is harder: Once the first spouse passes away, tax saving become very important. You’ll want to discuss your options, goals with a qualified estate planning attorney.
7) Don’t own your insurance: If you pass away owning a life insurance policy on your own life you are essentially handing moving to the government, according to Forbes. The proceeds of this policy are subject to estate taxes. Name a beneficiary for this policy instead.
8) Beneficiary forms are key: be sure that your designation of your 401k accounts and life insurance policies are kept up to date. Remember if you undergo a large life event life death or divorce your beneficiary designations may need to change along with it.
9) Cash is crucial: If you co-mingle your accounts keep enough cash on hand should your spouse pass away unexpectedly. If you hold separate accounts make sure your spouse has access to these accounts to help with funeral and burial expenses.
Because science shows that women outlive their husbands we can not stress how important it is that women need to know this key information. Forbes has listed these 9 important items to know and we agree. Ladies, take charge of your financial future.
If you’re interested in learning more about estate planning and creating the right plan for you attend one of our FREE estate planning seminars. Click here to register.