As busy and at times overwhelmed working moms, thinking further than the next drop-off or pickup, the next meal, or the next school form to fill out can be far-fetched. We’re so often caught with the demands of the moment that long-term planning can fall by the wayside. Especially when this long-term planning involves uncomfortable, and downright somber possibilities such as the case in which something should happen to us, and we could no longer be around our families and children. This falls under the definition of estate planning, which while sounding like a dark topic, is also one that working moms like you and I should get familiar with, and take action on.
According to Investopedia, estate planning is the “preparation of tasks that serve to manage an individual’s asset base in the event of their incapacitation or death.” This includes the guardianship of any living dependents, such as children, naming beneficiaries of insurance and retirement plans, naming executors and power of attorney to oversee and direct assets in the process, and many more planning tasks.
I remember meeting with my first financial advisor, and broaching the topic of estate planning. Saying it was a highly uncomfortable conversation is nothing short of an understatement. The prospect of anything happening to any of us is a rather terrifying one, let alone having to plan for it. However, life happens, circumstances are often out of our control, and may end up leaving our loved ones in dire straits for lack of adequate planning and preparation. This is actually what happens to 70% of Americans who leave this Earth without a will.
As working moms, it’s also our responsibility to help plan for the future and well-being of our children and families. If this is something you have thought about and would consider, here are a few steps to help us get started:
- Introduce and continue the conversation
This is hard to think about, let alone talk about, so it is understandable that you may feel awkward and even stressed broaching the topic. However, keeping in mind the well-being of your family can help in the process, and you can start with your spouse, significant other, or a trusted loved one. It need not be an elaborate discussion, but rather the honest asking of questions such as: “Who would take care of the kids if anything happened to me/us?”, or “What would happen if I fell ill?”, or “How will things and assets be divided up in case of unplanned circumstances?”
This also means continuing the conversation with the people you and your partner, or you on your own, if you happen to be single, have picked to fulfill various roles as part of your estate planning. These may be your potential executors, children’s guardians, or individuals to be entrusted with power of attorney. It would make sense to first discuss with them the possibility of their fulfilling these roles, and whether or not they agree to do so and are aware of what it entails.
- Begin the process
The most immediate basics that most people start with when it comes to estate planning consist in setting up a will and establishing life insurance. Many have life insurance already set up from their workplaces, however it is important to check whether those insurances do indeed cover all foreseeable needs should something happen. This is especially relevant if your family is dependent on your income.
As for a will, it can be easily done online, although you may want to check with a professional as well, and consider a “living will” as your healthcare directive for your medical and financial wishes.
Also be sure to consolidate all your paperwork and documentation, and inform your executor(s) of their location and how to access these, should anything happen.
- Seek professional help
If you’re afraid you may not be familiar enough with this process to undertake it alone, or your estate is larger or more complex than average, or if you possess investments, you may want to seek professional advice.
Despite the fees charged by attorneys (which may range from $500 to multiple thousands of dollars), setting up your estate plan appropriately will save you not just money, but your dependents much heartache and stress in the long run. Besides, peace of mind is worth every penny!
Have you thought about estate planning as a working mom?
Love
Solange
