Estate Planning for Unmarried Adults

Unmarried adults face unique challenges when it comes to estate planning. Without a spouse and possibly withouth children, it can be difficult to determine how to distribute assets and who to appoint as an executor. Here are some tips for estate planning for single adults.

1. Create a Will

Creating a will is a basic estate planning tool that everyone should have, regardless of marital status or children. A will is a legal document that specifies how you want your assets to be distributed after you pass away. It can also be used to appoint an executor, who will be responsible for carrying out your wishes.  However, unless your estate is very modest, e.g., under $100,000.00 you should seriously consider a trust-based plan so as to avoid costly and burdensome court proceedings should you become incapacitated or upon your death.

2. Appoint a Power of Attorney

A power of attorney is a legal document that appoints someone to make financial or legal decisions on your behalf if you become incapacitated. As a single adult, it is especially important to have a power of attorney in place to ensure that your affairs are handled in the event that you are unable to do so. However, a trust-based plan is even a better choice as certain entities may not honor the power of attorney.

3. Consider a Trust

A trust is a legal arrangement that can be used to manage your assets during your lifetime and after you pass away. A trust can help avoid probate, reduce taxes, and provide for your beneficiaries. As a single adult, you may want to consider a trust to ensure that your assets are distributed according to your wishes.

4. Review Your Beneficiary Designations

It is important to review your beneficiary designations regularly to ensure that they are up-to-date. Beneficiary designations on life insurance policies, retirement accounts, and other assets will override the instructions in your will. Make sure that your beneficiary designations are consistent with your estate plan.

5. Communicate Your Wishes

Communicating your wishes to your loved ones is an important part of estate planning for single adults. Make sure that your executor and beneficiaries understand your wishes and have access to important documents, such as your will and trust. This can help avoid confusion and conflict after you pass away.

In conclusion, estate planning for single adults is an important step to ensure that your assets are distributed according to your wishes. Creating a will, appointing a power of attorney, considering a trust, reviewing your beneficiary designations, and communicating your wishes are all important elements of estate planning for single adults. Consult with an estate planning attorney to create a plan that is tailored to your needs.