With the Baby Boom generation growing older, an estimated $124 trillion is being passed on to younger generations. As a result: it’s estimated that in just a few years—by 2030—women will control way more money than they currently do. Clearly, this makes retirement, care and estate planning ever more essential–and viable.
New Possibilities, New Plans….
In real time, many lucky women will find themselves with money that enables them to think differently about care giving for others, and care plans for themselves. Paying off debt, owning a home or rethinking educational and other goals may all become possibilities too, given the great wealth transfer:
The next 20 years will feature an unprecedented handover of wealth in the United States. With the Great Wealth Transfer already underway, baby boomers are bequeathing a historic $124 trillion in personal and business assets to younger generations. According to a Citizens’ survey, half of Gen Z and millennials in the U.S. expect to receive an inheritance. A quarter of them anticipate acquiring $500,000 or more. By 2030, women will control $34 trillion in investible assets — three times the quantity they possessed at the start of the current decade…..As the Great Wealth Transfer accelerates, the world will see women increasingly take on critical decision-making roles in personal finance. To meet that challenge, 90% of women communicated a desire to work with a financial advisor to meet their goals. The top priorities among them are:
- Saving for retirement
- Growing non-retirement savings
- Paying down debt
- Preparing for a major purchase
- Estate planning
Though it may feel unnecessary in younger years, it’s especially wise for women to begin attending to both retirement planning and estate planning early on. Strategizing about living and care arrangements for older age is the best way to ensure autonomy and independence throughout our lifetimes. As attorney Kyle Krull of Harvest Law KC, points out: “Although aging can be intimidating and challenging, preparing for the future can help women maintain personal autonomy, financial security, and access to quality care. Estate planning is necessary to secure legal protections for finances, healthcare, and asset distribution.”
Put Yourself First
Of course setting aside assets for loved ones is rewarding and wonderful, but given women’s longer lifespans, it’s wise for women to make financial and care plans for themselves too. Indeed, putting funds and plans for aging in place is perhaps the best gift we can ultimately give the family’s next generation. A solid estate plan also includes designating both a financial power of attorney and someone you trust to make healthcare decisions on your behalf. Importantly, when creating an estate plan, you’ll also name a fiduciary to administer it. Depending on location and circumstance, this person may be specifically referred to as an executor, personal representative, or trustee. When it comes to select fiduciaries, it’s common to appoint a relative or friend, though keep in mind that sometimes appointing a professional fiduciary makes the most sense. For those aging solo, the services of a professional fiduciary can be especially reassuring.
Because of the responsibilities involved in the role, an estate bond is frequently required when a fiduciary is designated. The purpose of an estate bond is to guarantee that your plans will be properly administered in accordance with the law. An estate bond is sometimes alternatively referred to based on the specific role of the fiduciary. For example, an estate bond may be referred to as a trustee, executor, personal representative, guardianship or conservator bond. Colonial Surety Company makes it quick and easy to obtain estate bonds of all kinds. Our user-friendly online service enables quotes, purchases and bond downloads instantly. Fiduciaries in every state can efficiently obtain their estate bonds right here:
Don’t Forget: Digital Assets
Careful planning for traditional bank and investment accounts, real estate and other tangible assets is clearly an important part of estate planning. However, with more and more of life spent in the digital space, don’t neglect your online accounts. At the New York Times, J.D. Beirsdorfer reminds us that “the Revised Uniform Fiduciary Access to Digital Assets Act, enacted by most states, gives a chosen representative (like your estate’s executor) the authority to manage your electronic affairs,” and encourages including “specific instructions about how you want your online accounts and all digital content handled when you die or become incapacitated” alongside your official estate planning documents.
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