Why
Smart
Women
by Paulla Hyatt-McIntire
Invest in Estate Planning
Death is uncomfortable to think about, and can be even more difficult to discuss with our loved ones. It’s no wonder so many fail to consider what will happen to their hardearned assets and those they love after they die.
omen in particular face
Some studies show as few as 30% percent
favorite charity. An estate plan is personal
challenges when it comes to
of adults have estate planning documents
and should reflect your own priorities for
estate planning.
in place. The reasons given range from
the ones you care about. It isn’t just about
thinking estate planning is only for the
who gets the sterling silver (although
It is difficult for them to think about
wealthy to the illogical concern that if
personal property is a surprisingly
leaving behind their children, spouses,
a person has a will, something bad will
important part of the overall plan); it is
parents, and others they love. The thought
happen to them. The recent passage of the
about expressing your hopes and desires
is nearly unbearable, so most avoid it.
American Taxpayer Relief Act of 2012,
for your loved ones when you are gone.
which increased the estate tax exemption In addition to all those reasons, many
to $5,250,000 per person, adds to a
Many people believe that estate plans are
women also overlook the likelihood that
common misconception that if you don’t
prohibitively expensive. A basic plan for a
they will outlive their male partners. It is
have great wealth, you don’t need to plan.
single or young couple is likely to be well
not enough to assume that beneficiary
Estate planning is much more than tax
under $2,000. Aggressive tax planning and
designations are correct and that things
planning. It is about planning for your
complicated trusts do increase the cost,
will work out. Many married couples
children, spouse, and loved ones by
but are not appropriate for most people.
assume everything they own will go to the
naming guardians, defining the manner in
Most good estate planning attorneys will
other when one dies. However, this is not
which those you love inherit wealth, and
work with a client to prioritize the critical
always the case, and certainly not without
passing down your hard-earned assets (no
documents and perhaps even spread out
confusing, time-consuming, and expensive
matter the value), to those you love in the
payments over time.
steps such as probate.
way you choose. To locate a good estate-planning attorney,
If you don’t sit down with an attorney
An effective estate plan dictates what you
ask friends, financial planners, insurance
and establish an effective estate plan, the
want to happen, with appropriate plans for
agents, and tax professionals for a referral
consequences can be expensive and
contingencies. These contingencies may
to an attorney that specializes in estate
unfortunate. The California Probate Code
include a loved one predeceasing you in
planning. You can also check with the
has a plan for you and your assets if you fail
death; ensuring that your children don’t
State Bar of California for specialists in
to make your own. It is not likely to reflect
receive a lot of money all at once at age
estate planning.
your wishes, especially if you have more
18, but in stages, with the assistance of a
than one marriage, children from more than
trustee; paying for the education of your
When you meet with an attorney, be
one marriage, a co-habitant, stepchildren, or
younger loved ones; or planning for a
prepared with a list of your assets, a list
any number of other relationships outside
disabled child, your church, or your
of your loved ones, and thoughts about
the “traditional family.”
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your priorities. Be prepared to use your