Disclaimer: Information on this blog post is not intended to be legal advice. I am not a licensed attorney and would recommend that all readers consult with an attorney if you have any questions.
Ok, you know when I start my blog with a disclaimer that something's up. But you can blame it on the fact that I've immersed myself in wills and estate planning for the past week. As I've been reviewing the concepts for this class it occurred to me that there are some basic things that every woman really ought to know. Unfortunately, most of us don't think about these issues until it's too late.
I know that as a wife and mom, I'm thrilled that my husband wants to handle the money/legal issues for the family. It's just less for me to worry about. But as a future attorney, I know that wives and mommies have a responsibility to know some basic information. So here are a few basic things that every woman should know:
1) Every woman needs a will. Every woman needs her own will, not one shared with her husband. The best course of action would be to have an estate planning attorney draft a will for you. Even though my husband is an attorney and is drafting my will, it's still my will and I won't be signing it until I'm satisfied with all the provisions. Trust me, getting a will is a pain, but it's one of the smartest ways to spend a couple hundred dollars. Here's why: If your husband doesn't have a will, you don't necessarily get to keep all of your marital property when your husband dies. It just depends on the state where you live. And if you don't have a will, your husband could get tied up in probate court trying to sort out property according to the intestacy laws of your state. So, if you want to make sure that your property and children go to the people that you choose, get a will and don't let the government decide for you.
2) If you move to another state, you really ought to meet with an estate planner and have him review your will. Even though a good attorney should be able to draft a will that satisfies laws anywhere, each state has completely different property laws. I've only lived in 2 states during my life, and both states have completely different rules--Texas being more friendly to wives.
3. You need life insurance. If you and your spouse can't afford life insurance for both of you, the breadwinner in your family should have a policy for 10 times their annual salary. (So if your husband makes $50k per year, you need a $500,000 policy.) You can purchase a reasonable term life insurance plan, but the sooner you buy it the cheaper it will be.
4. You need to know your financial situation. If something were to happen to your spouse today, do you know what your financial future looks like? Do you know how you would pay your bills next month? Do you even know how you would pay for funeral or medical expenses?
I know that thinking about the "what ifs" in life isn't fun. But when you choose not to think about the future and plan ahead, you could end up in a dire situation. If you haven't met with an attorney and talked these issues through with your spouse, make a date to do it.
Part of being a good wife and mommy is being responsible. Most of us wouldn't dream of not having health insurance. So why are we so careless when it comes to planning for end of life issues?
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