Estate planning might seem like something only families need to worry about. However, it’s just as crucial for single people, especially those over 50. Without a plan, your assets and healthcare decisions could end up in the hands of the state or distant relatives you barely know. Kiplinger makes the case that estate planning is essential for single people’s well-being and control over their assets.
If you pass away without an estate plan, the courts will distribute your property according to state laws. The state will look for your next of kin, which could mean your assets end up with distant relatives. If the state can’t find any relatives, it may claim your assets itself.
What’s more worrying is what happens if you’re indisposed. A spouse, parent, or child will normally make your financial and healthcare decisions if you cannot do so. Absent such a person, the state will appoint someone you probably don’t know to be responsible for you.
A healthcare power of attorney is essential for single people. This document allows you to designate someone to make medical decisions on your behalf if you can’t. You can choose a trusted friend or relative who understands your wishes. Combine a healthcare power of attorney with an advanced healthcare directive to lay out your values, wishes, and end-of-life care preferences.
A financial power of attorney designates someone to handle your finances if you cannot do so. This person will pay your bills, manage your accounts, and make financial decisions on your behalf. When you recover from an event that leaves you indisposed, you’ll be much better off having had a trustworthy financial power of attorney.
Creating a will is the foundation of an estate plan. It lets you decide who inherits your property, whether friends, charities, or other organizations. You can even make provisions for your pets and specify who should care for them. By naming an executor you trust, you can rest assured of your wishes going into effect.
While a will is the basis of an estate plan, trusts are vital to achieve specific goals. A revocable trust can avoid probate, the court process of validating a will, and directly fund goals that are important to you.
While federal estate taxes may not concern many, state inheritance taxes can be significant. Many states have lower exemption limits and impose taxes on property left to non-family members. Planning for these taxes is crucial to ensure that your beneficiaries receive the intended amount of your estate.
You have broad leeway to prearrange your funeral in your will. You can specify whether you want to be cremated or buried and even arrange the details with funeral homes or cemeteries. Documenting your wishes ensures they are followed, preventing confusion or conflict among loved ones.
Decide whether you want to stay at home with the help of in-home care services or move to a nursing home, if necessary. If you choose to stay at home, making accessibility modifications to your home can go a long way toward making single living practical in later life. Good estate planning can also help you reserve funds for these eventualities.
If you are a single person who wants to get your estate plan started but doesn't know where to begin, our firm can guide you through it. Contact The Werner Law Firm living trust lawyers in Frisco for a free consultation today.
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Reference: Kiplinger (May 21, 2024) “10 Things You Should Know About Estate Planning for Singles”
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