Women must act now to get more than breadwinner’s crumbs – BJM Trust

In the third millennium most wives don’t see their role as picking up the crumbs left by a male breadwinner, but that’s what some women will be left with on the death of their spouse.

The alert at the start of Women’s Month comes from attorney Karen Coetzer, head of BJM Trust, a subsidiary of BJM Private Clients, a financial advisory business focused on the needs of high net worth individuals.

She says it’s a mistake to believe only unsophisticated women in lower income groups are left in need when a partner dies.

“I know of a case where a recently bereaved widow confesses she does not know where any of the assets are,” says Coetzer. “She drives a luxury car, lives in a R6-million home and is highly intelligent and sophisticated.

“But her life revolved around home, children and grandchildren. Financial matters were left to the breadwinner. Looking around for crumbs a month after bereavement can be a shock. But shocking cases like this are by no means rare.”

Some women are reluctant to take on a proactive financial role, even after they’ve been alerted to the dangers of passivity. The fact that women often outlive their life’s partner should be a wake-up call, but often isn’t.

“Reluctance to be hands-on with finances is not necessarily a problem when substantial wealth has built up,” says Coetzer. “Trust structures can be developed to ensure continuing income and other provision, with very little day-by-day involvement by the woman concerned.

“Even in cases like this, a woman should at least ensure she is conversant with the trust deed and that the wording is sufficiently flexible to allow trustees to make adjustments when changes occur in the financial, legal and taxation landscape.”

Some women are content when a property is put in their name and husbands assure them this creates long-term security.

“This is a fallacy if this is the sole provision,” says Coetzer. “A spouse’s death may occur during a housing slump. A forced house sale to raise cash depletes value. The widow also faces the distress of down-scaling in a tough housing market. Additional provision avoids the problem.”

Women, from well-to-do or more modest circumstances, are well advised to get involved in financial planning now rather than later.

“Most men see the sense of working on financial matters together,” adds Coetzer. “A husband’s death is not the only eventuality. Alzheimer’s and other health issues could also strike down the husband. A wife then has to take a hand.”

It is usually necessary to draw up a list of assets and debts while establishing where important documents are kept. A regular financial review is also a good idea.

“Women who once refused to get involved often surprise themselves and quite enjoy a more hands-on financial role,” says Coetzer. “There is even some evidence women make better investment strategists than men because they take a long view and don’t get too emotional about short-term setbacks.

“Smart wives usually don’t let on that their husbands are too emotional for long-term money management. The diplomatic way is to say two heads are better than one.”