Estate planning is an essential part of the financial planning process. It is your opportunity to choose how your financial and personal wishes are carried out after you’re gone. Your approach to those decisions may actually be heavily impacted by your gender. Men and women often look at finances in very different ways, which can make estate planning for couples a complicated undertaking.
Keep in mind that these are general gender trends we have noticed while working with our clients. Everyone’s financial situations are unique, and personal circumstances and experiences are the key drivers in any person’s decision-making process.
Women’s priorities:
- Healthcare and long-term support: Women often take into consideration medical situations and are more likely to prioritize healthcare proxies and living wills. As women tend to have longer life expectancies, planning for extended healthcare needs may be top of mind, including funding assisted living or in-home care if necessary.
- Protecting family interests: Many women, particularly those who have been primary caregivers, emphasize clear guardianship plans for their children or dependents. They often stress the importance of communicating their estate plans with family members to reduce potential conflicts and ensure a smooth transition to their heirs in the future.
- Financial stability and independence: Women may place a higher priority on making certain they are financially secure. They emphasize the need for adequate retirement savings and the importance of steady income streams, as they are often factoring in the probability of extended lifespans.
Men’s priorities:
- Efficient wealth transfer: Men may be more inclined to explore strategies that minimize tax liabilities, focusing on the efficient transfer of wealth to their heirs. For those who own businesses, planning for the future of the enterprise – including succession planning and putting buy-sell agreements in place – is often a top priority.
- Asset consolidation and investment strategies: Men might emphasize strategies that consolidate and protect their investments, focusing on preserving their wealth for future generations. Estate liquidity is a common consideration, including planning for the availability of sufficient liquid assets to cover taxes, debts and other expenses after passing.
- Legacy and philanthropy: Men tend to focus more on leaving a legacy. They utilize estate planning mechanisms to create more secure financial lives for future generations. Some men may be inclined to integrate charitable giving or foundations into their estate plans.
How to plan collaboratively:
While the priorities of men and women may differ, it’s important to remember that estate planning is a deeply personal process. Many couples find that their priorities overlap or evolve over time, influenced by personal experiences, family dynamics and changes in financial circumstances. Here are three effective ways for couples to collaborate on an estate plan that respects their unique priorities.
- Open and honest communication: Schedule regular talks to discuss your financial values, goals and concerns. This dedicated time allows both partners to voice their concerns and work toward a mutually beneficial strategy.
- Seek professional guidance together: Consulting with an estate attorney and a financial advisor can help bridge any differences. Financial advisors and estate attorneys can provide impartial advice and craft a plan that addresses each partner’s unique needs while integrating comprehensive solutions for both family protection and wealth management.
- Develop a flexible, regularly reviewed plan: Create an estate plan that includes built-in flexibility to accommodate future changes. Review your estate plan periodically as financial goals evolve, allowing adjustments that honor both partners’ wishes.
The key to successfully creating an estate plan is to recognize that values and experiences ultimately shape one’s financial framework. By recognizing these tendencies and fostering open communication with professional guidance, couples can work together to create an estate plan that reflects their unique needs and goals. If we can be of any assistance along the way, don’t hesitate to reach out.
Disclaimer: This material is for informational purposes only and should not be considered financial, tax, or legal advice. Always consult with a qualified professional regarding your specific situation. All investment strategies involve risk, and there is no assurance that any strategy will achieve its intended results.