Good morning! The Trump administration wants to dismiss lawsuit restricting abortion pill access, the end of a tariff loophole could hurt UPS, and a new UBS report finds women are facing hurdles in the great wealth transfer.
– Talk it out. Women are set to receive tens of trillions of dollars in the great wealth transfer, the passing on of assets already in motion that could see as much as $105 trillion change hands over the next two decades. Not only will women inherit wealth from their parents, but many will become the sole decision-makers for their household’s wealth after widowhood. Baby boomer women alone are set to receive almost $40 trillion from partners in the coming years, according to UBS.
And while there’s been a growing awareness of the great wealth transfer over the past few years, one under-discussed aspect of it is whether or not heirs, particularly women, are prepared—emotionally or logistically—for their inheritances.
To find out, UBS took a look at three groups of women: those who have already inherited from their parents, those who expect to inherit from their parents, and those who are widowed and expect to receive full control of their household’s wealth.
In a report out Wednesday, UBS researchers find that 80% of women who inherited from their parents and 83% of widows faced a “wealth transfer challenge,” whether that be not knowing how much they were to receive or not knowing if their parents or spouse had a will. Half experienced a surprise, like a bigger tax bill or familial tension.
UBS finds that many of these challenges could have been prevented had the parties involved communicated about their estate plans. Many don’t discuss finances with their parents, spouse, or other benefactor before it’s too late, leaving them without the information they need to manage their new wealth appropriately. That includes, at a basic level, being told they will inherit, but also things like what the accounts are and where they are located.
Carey Shuffman, head of women’s wealth at UBS, says one way to broach the topic with parents when money is not typically discussed is to do so through a conversation on vision and values. Future heirs can ask their parents what they want their legacy to be.
“These conversations alone can be incredibly valuable in starting the conversation,” she says. Then, it can be easier to transition into what Shuffman calls the fundamentals of the wealth transfer. “Focus more [on] what to do in the event of a death. For example, where their accounts are located and who their trusted advisors are.”
And though couples are expected to share financials with each other, that conversation can be just as difficult for countless reasons—no one wants to think about their partner’s death, but unfortunately, not doing so can make the aftermath that much more difficult to navigate.
“Women can emphasize that this ‘just in case’ discussion can benefit both spouses, giving them each peace of mind,” says Shuffman. “We all want to know that if something happens to us, the people we care about most will be okay.”
Estate planning is a topic I’ve been covering more regularly as our financial lives get more complex. Here are some resources if you’re working on your own plan:
—Why the first step in your estate planning process shouldn’t be crafting a will
—What single and child-free people need to know about estate planning
—Planning your estate? Decide who gets your passwords—and who will burn your journals
—Why inheritance should be a faucet—not a firehose, says a wealth manager
—If you inherit $1 million—or any amount—this is the first thing you should do, says financial planner
Alicia Adamczyk
alicia.adamczyk@fortune.com
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This story was originally featured on Fortune.com
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