Estate Planning for Those Without Children: Essential Steps

For individuals without children, estate planning requires addressing unique challenges. While parents often rely on their children for care and as heirs, those without children must make thoughtful decisions about their long-term care, trusted representatives, and executor preparations. A recent Wall Street Journal article, “Estate-Planning Priorities for People Without Children,” highlights key priorities for those navigating this path.

1. Plan for Long-Term Care

Healthcare costs during retirement can be significant. Studies show the average 65-year-old will need approximately $150,000 for healthcare. For individuals without children, long-term care insurance is crucial. Consider purchasing a policy in mid-life, starting around age 40. These policies can help cover home care or nursing facility expenses when no immediate family members are available.

While fewer companies offer long-term care insurance today, hybrid policies combining life insurance and long-term care coverage are popular options. Some policies allow withdrawals of contributed funds as cash, include a death benefit, or offer inflation riders to account for rising costs.

2. Choose Trusted Individuals to Act on Your Behalf

Without children, individuals often turn to spouses, siblings, nieces, or nephews for roles like Healthcare Proxy or Durable Power of Attorney (POA). Reliable friends or neighbors, preferably younger and in good health, can also take on these roles.

Naming other single individuals as decision-makers may create vulnerabilities if those trusted individuals face disability or death. Consider professionals, such as estate planning attorneys, financial advisers, doctors, or social workers, for roles like Healthcare Proxy. Ethical bill-paying services may also serve as POA, provided the relationship is established well in advance.

Estate planning documents, including POAs, are state-specific, so consult an estate planning attorney to ensure compliance with local laws. Always name a secondary person to step in if the primary POA is unavailable. Openly discuss responsibilities with your chosen representatives to avoid surprises later.

3. Simplify the Executor’s Job

Preparing detailed instructions benefits all estates, but it’s especially critical for those without children. Steps to ease the executor’s role include:

• Reviewing and updating beneficiary designations for financial accounts, life insurance policies, investments, and retirement funds.
• Writing down wishes for funerals or memorial services.
• Creating a will and trust (if needed) with the help of an estate planning attorney.
• Informing the executor about the location of estate documents to avoid unnecessary searches through files or devices.

Estate planning for those without children may require additional effort, but it ensures your wishes are respected and eases the burden on loved ones and trusted representatives. At The Werner Law Firm, our experienced estate planning attorneys can help you prepare a personalized estate plan by securing long-term care options, designating trustworthy representatives, and simplifying executor responsibilities. Let us guide you through these important steps to protect your legacy and provide peace of mind.

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Reference: The Wall Street Journal (Nov. 12, 2024) “Estate-Planning Priorities for People Without Children”