Five Estate Planning Tips for Single Women

I recently did a presentation on estate planning that was specifically intended for women. The talk was designed primarily for women looking at crafting estates after a spouse or partner had died where there were children from the relationship. I was asked after the event to give some thought to issues and considerations that may be specific for single women doing their estate planning that hadn't had children or never married.

Here are five of the suggestions (not intended to be exhaustive) I assembled:

1. Do A Will - It's Important!

In 2018, an Ipsos Reid poll revealed that 50% of all adult Canadians did not have a valid will. Of those who did, another 15% had wills that were badly outdated. If you are an adult female you should have a will. The alternative to dying with a will is called dying intestate. An intestacy means the relevant provincial legislation will make all the important decisions for your estate. It is a common misunderstanding that the default regime is basically what most people do in their wills. It isn’t even close. For example, absent other planning, beneficiary designations or shared ownership, in an intestacy:

• If you wanted to give to a charity at death they will not be considered;
• If you wanted to care for a parent or sibling with some of the estate assets this will not likely be achieved;
• If you have a common law or same sex partner they are not treated as a spouse and their property and support rights are very limited;
• If you have minor children you will not be able to choose and direct their guardianship;
• If you have friends you wanted to make gifts to at death this will not happen; 
• If you had an adult step-child or grandchildren you wanted to include in the estate this will not happen;
• If you were concerned that loved ones and heirs would be unprepared to receive wealth or damaged by the inheritance you have lost the ability to manage that risk;
• If you wanted privacy the estate will now be a Court case open to the public;
• If you wanted control over beneficiary access to capital and income this will not occur as most statutory beneficiaries will receive their full entitlement when they turn eighteen;
• If you wanted to choose the person or team to administer the estate this will not happen;
• If you wanted to preserve some or all of the financial wealth to invest into the social, human and intellectual capital of your family in a long-term strategic manner, this will not happen. 

Basically, if there was anything you wanted to do it will likely not happen unless you have a will.

2. Work with an Estate Planning Lawyer

Estate planning isn’t simpler just because you are single. In fact, it may be more complicated to ensure your unique goals and objectives are properly achieved. In Ontario, many other areas of law impact on estate planning including family, tax, corporate, cross border and trusts. Work with an estate planning lawyer who has expertise in all facets of estate planning to help you in the process. The Law Society of Ontario certifies some lawyers as Trust and Estate Specialists or seek out practitioners with additional designations such as a TEP from the Society of Trust and Estate Practitioners (STEP). I have also written on how clients will choose their trusted advisors in the future. The article is here.

3. Purposefully Choose your Estate Trustee

Choosing an estate trustee is, perhaps, the most important will planning decision. The estate trustee (sometimes called an executor or executrix) is legally responsible for carrying out the wishes of the deceased as expressed through the will. The trustee-beneficiary relationship is vital to the overall success of the plan. 

A single female faces all the typical considerations that are relevant to the choice of an Estate Trustee including:

• Trustworthiness;
• Comfort or competency with financial and taxation issues;
• A willingness and ability to see the job through to completion;
• Ability to work with the other trustees if there is more than one appointed;
• A life situation that permits the maximum opportunity to be successful in the role including good health, life stability and, in some cases, proximity to the beneficiaries of the estate; 

In addition, there are a variety of added considerations for a single person:

• The appointed trustee may be a friend or co-worker. Is it appropriate to and have you shared the full extent of the estate plan with this person? Are they equipped with the information they will require to be effective and successful in the role? Communication of intent and estate scope is vital for any trustee. How much are you prepared to share in advance?
• If the appointed trustee is a family member, are they similarly equipped with an understanding of the true scope of your assets, intentions and key beneficiary relationships? This is especially vital if the trustee has been provided some latitude and discretion in the scope of their decision making powers. Are they aware of the full nature of your life sufficient to ensure your wishes are respected?
• Your will speaks from the moment of death. An estate trustee is not obligated to accept the role when appointed in a will even if they had previously indicated they would do the work. Make sure you have an alternate appointment in the event your first choice is unwilling or unable to start or complete the task. Alternate choices are often the most difficult to imagine;
• Being an estate trustee is hard work, time consuming and an unexpected burden for which there is little advance training in life. Consider appointing a professional estate trustee such as a Trust company.

Females are values focused and long term in their strategic planning. You should be willing to advocate for your planning goals on every decision in the process. Your estate trustee should share and support those values and objectives in the execution of your plan. This may require a purposeful approach to choosing the trustee(s) in advance that includes thoughtful conversations and attention to governance and decision making details. This is a process, not an event. 

4. Do Powers of Attorney

Canadians are living longer. The average female life expectancy in 2019 is about 85 years. Yet, while a long life is surely a blessing, many of those years may feature a decline in cognitive and physical strength that may require the decision-making assistance of family and friends.  

A will speaks from the moment of death. Prior to that moment we must speak for ourselves. What will you do If you are incapacitated by illness, infirmity or injury? Who will make decisions on your behalf until you recover or die? In Ontario, there are two primary documents to fill this decision-making void: a Power of Attorney for Property and Power of Attorney for Personal Care.

Every adult should have these documents as part of a fully robust estate plan. The property power of attorney allows you to appoint a third party to make decisions about your assets and “things”. The personal care power of attorney allows you to appoint decision makers over issues related to health and consenting to treatment. The appointments should be complementary and designed to work in tandem with all the other elements of your estate plan. It’s important to work with an estate planning professional that can integrate all the needed features to achieve your objectives. 

Some specific considerations for a single female might include:

• The skill sets required to excel as an attorney for property are roughly similar in scope to those of an estate trustee in a will. You can appoint the same people for each role but it’s not required and may not be appropriate. Take time to explore what’s important to you if you become incapable at different stages of your life and compare that to your estate objectives. For example, if you are sixty and endure a lengthy incapacity period, your primary goal may be your own comfort and the preservation of financial assets. At death, the goal may transform to discretionary investment into the beneficiaries of your estate. These are different objectives with different timelines and may require different decision makers;
• Depending on age and lifecycle stage, many people tend to lean heavily towards parents and siblings earlier in life and then partners, adult children or friends in later stages. In addition to core skills and a willingness to accept the role, take time to consider the station in life and relationship skills of your choices. It is difficult work being undertaken at a difficult time in your life. Don’t forget, if you care for and trust the people you choose then your incapacity is also a difficult time for them. How will being “in charge” of your situation affect their relationships with your other loved ones? For example, if you have three adult children and you select the oldest as attorney for property because they are a professional or simply the oldest, ask yourself how that will be perceived by the other children. Is it a slight? Does it reinforce old grudges and rivalries? You may be advised that it shouldn’t matter and that’s their problem. However, in fact it is your eldest’s problem now and they will have to deal with it, not you. Choose thoughtfully and communicate in advance;
• The person you choose as personal care attorney is often the same as the property attorney. However, this is not a requirement and may not even be advisable. Single adults should understand that if they appoint different persons for each role those persons do not operate in a vacuum and still have to be able to share information, communicate and make decisions together with your best interests in mind. Can they do that? Do they have the same information? Do they share your values and will they respect your wishes even where they may disagree on a personal level? Will one person, by sheer force of personality, dominate or bully the other decision maker?     

5. Incorporate the Long View

The future of estate planning is female. This means that the planning is strategic over tactical, dynamic over static and long-term over short-term. Incorporating a long view in planning is an essential mindset to preserving family wealth for the long term. It also changes how you seek, assess and accept advice.

Everyone should be an advocate for their own planning needs and goals. It doesn’t matter what anyone else in a similar situation does with their plan. What matters is what you want to see happen and why that is important to you on a personal level. Estate planning for a single female is no different. Understand your goals and values in advance to ensure that your planning is authentic to your expectations. 

Incorporating a long term mindset allows this to happen. It helps you assess planning suggestions and opportunities against the backdrop of your values and objectives. Any recommendation that achieves a minor tactical win but risks the greater objectives of the plan can, at least, be properly understood in context.

Chris Delaney, B.A., LL.B., B.Ed., TEP, FEA is the author of The Naked Opus: Growing Your Family Wealth for the Long Term. It is available across Canada at Chapters/Indigo stores and at Amazon.ca . For speaker information or larger book orders please visit www.nakedopus.com