Women often put their children before their own needs, knowing they are well and cared for is an intrinsic part of their being. By not planning for the future and working with a financial professional they often leave this earth creating a tsunami of challenges for their children. If they truly understood the impact their death could have on their children beyond the emotional loss they would immediately step up and get their financial life in order.
There is no question that wealth can bring a family together and just as easily tear a family apart. As a financial planner I have seen the trauma that occurs when estates are left with no plan, assets are unprotected and children are squabbling over property and legal rights. It’s not pretty and it’s not fun.
Here are 5 MUST do’s for every woman who truly cares about her children and what she leaves behind:
✓ Write your Will: A will formalizes your wishes for how you want your assets handled after your death and to whom they should be gifted.
✓ Select an Executor: The executor will handle your estate including taxes and distributions but be sure and select someone that has some financial savvy and introduce your executor to your financial professional.
✓ Consider a Trust: Trusts can help even those with smaller estates to protect the assets and ensure they go where you intend.
✓ Gift assets now: While there are often tax benefits to some there is double pleasure in experiencing the joy of helping your children during your life.
✓ Assign a Power of Attorney: this is a person who you trust to make decisions regarding your health, future and financial life in case of your inability to make decisions for your life.