The Truth About Women and Estate Planning

It’s no secret that women face a few gender-specific obstacles when it comes to girl bossing, making bank and just generally being alive(!). From glass ceilings to glass cliffs and everything in between, their nest egg is hard enough to nurture in the first place. Now, it seems that even longevity is working against the ladies.

And if that wasn’t enough, there are also some estate planning myths we need to set the record straight on…

1. Myth: The ‘Gender Pay Gap’ does not exist in estate planning

The limit may not have existed for Cady Heron in Mean Girls, but the gender pay gap sure as heck does, for all girls, mean or not. In fact, the World Economic Forum predicts that it will take well over a century for that gap to finally close. So, any advice for women to focus on making more moolah now in a (futile) effort to close the gap, and worry about estate planning later, should be kicked to the curb.

It may seem less pertinent to take on estate planning when a woman is distracted by her existing disadvantage in accumulating wealth over time. The truth is, it still needs to be a focus for all females wanting to maximise and protect their resources. Estate planning can also empower women by allowing them to allocate their assets as they desire, in a way that reflects their values and wishes.

2. Myth: Women’s estate planning needs are not unique

Plenty of other needs are unique to women – it’s no different when it comes to estate planning! Sure, estate planning is essential for everyone, but that doesn’t mean the approach is the same across the board. There are a few challenges faced only by women which have major repercussions for their estate planning.

For one thing, women are outliving their male counterparts by about four years. This adds complexity for women since they more likely need to plan for a longer retirement (not to mention healthcare costs associated with living longer). Women tend to dominate service industry jobs that are lower paying, as well as often getting paid less even when they’re in the same jobs as their male colleagues (as we know).

Despite this, they need to save more during the years they’re actually in paid work. The kicker is, these years have a higher likelihood of being cut short, since it’s the women in our lives who are usually the caretakers - whether for children or aging parents. All this adds up to a limit on the time and resources available for estate planning when it is actually the most crucial, as their estate plan is where they consider who should care for their dependents in their absence. The girl math is giving Catch-22.

3. Myth: Without a Will, a woman’s estate and guardianship of minor children will fall to the next-of-kin

Some may argue that women are elite communicators, and so it’s likely that their loved ones are well aware of their wishes and how to fulfill them, if they were to die without a Will. We’re here to tell you that it’s definitely not a reason for a woman to de-prioritise the creation of the legally-binding document which ensures nothing is left to chance.

Ultimately, family members do not get to decide what happens to a loved one’s property and children if that person dies Will-less. Instead, a local probate court will be the one to make the decision based on state laws, and the outcome is not guaranteed to align with the woman’s wishes. The importance for a woman to take control of her estate planning cannot be understated, especially if she is responsible for the care of young children. An estate plan provides clear instructions that map out her children’s future care and channels the distribution of assets in a way she sees fit.

Other pieces of the Estate Plan puzzle

For the ladies who have spent their life building their assets, having a Will as part of a robust estate plan is the way to make sure these assets are properly protected, which in turn protects them and their kids.

Some other important measures to take include:

• Creating a General Enduring Power of Attorney to ensure that legal and financial affairs are properly handled, should you be unable to make decisions in your own best interest

• Creating an Advance Care Directive, to appoint one or more trusted decision-makers to help you regarding your accommodation, health, lifestyle, treatment, care and end-of-life decisions

• Documenting all inter-family arrangements such as loan agreements, to guard against any potential disputes later on

• Checking registration and titling of asset-ownership, so there are no surprises

• Retirement Savings Financial Planning

Wrap up 

As we strive for a more inclusive, equitable and stable society, recognising and addressing women’s unique challenges in estate planning lays the foundation for building that prosperity for families and communities. We at Willed are here to help you with the construction of the female future we all deserve. 

If you found this helpful, you may benefit from reading our guide on Estate Planning for Women.