Estate planning isn’t just for married couples or parents. Estate planning for singles is just as important, because a plan helps ensure your wishes will be carried out and important decisions remain in trusted hands. If you don’t have one, courts or state law may determine how decisions are made and assets are distributed.
Preparing for the unexpected
Without a will, state intestacy laws generally determine who inherits assets. While beneficiary designations may control certain accounts, assets without beneficiary designations or joint ownership typically pass according to state law.
For singles with no children, state law may call for assets to be distributed to relatives such as parents, siblings, aunts and uncles, or cousins. If no relatives can be located, assets may pass to the state. A will can help ensure your assets go where you intend.
Estate tax considerations
For wealthier singles, there are also estate tax considerations. Singles can’t take advantage of the doubled estate tax exemption available to married couples who plan properly. Singles with significant assets should consider estate planning techniques such as trusts to help minimize taxes.
Decisions during your lifetime
Estate planning for singles also addresses decisions made while you are living. Powers of attorney can allow someone you trust to handle financial matters and make medical decisions on your behalf if you become incapacitated. Without those documents in place, your family may need to go to court to obtain that authority.
Next steps
Creating a will, powers of attorney, and trusts, if needed, can help protect your wishes and provide peace of mind. Our office can help you build an estate plan that reflects your intentions, and your first trust setup meeting is complimentary. Call us at (760) 434-1040 to get started.