Single individuals over age 50 require estate planning.
Some people choose to be single, while others find themselves single through divorce, death, or failure to meet an appropriate partner.
Both married and single individuals have unique benefits and challenges based on their relationship status.
Many people mistakenly believe estate planning is of greater importance and urgency for those who are married.
This myth can be perilous for those who are single.
According to a Kiplinger article titled "10 Things You Should Know About Estate Planning for Singles," estate planning is crucial for single individuals.
Single individuals over age 50 should protect themselves through estate planning.
Dying without an estate plan in place leaves the distribution of your belongings to state laws.
What does this mean?
The state will appoint an executor for your estate and will search for your next of kin.
Depending on your state's statutes, your property could be inherited by a distant relative you never knew.
Should the government fail to find a relative, your assets will become the state's property.
Yikes!
While what happens to your estate after you die does not directly affect you, you should be concerned about what happens when you are incapacitated without an estate plan.
Spouses, parents, and children are common choices for those named in advanced healthcare directives or powers of attorney to manage your financial and medical decisions if you cannot do so yourself.
If you are single and have none of the relations and no estate planning documents, the state may choose an agent who knows nothing about you to be responsible for your money and medical needs.
Single individuals must have a healthcare power of attorney.
With this document, you can appoint someone to make health care decisions if you are incapacitated.
Common choices include a trusted relative or friend who understands your wishes regarding care.
Combining a durable power of attorney for health care decisions with a health care treatment directive allows you to outline your medical wishes, values, and preferences for end-of-life care.
Our law practice refers to this two-page document as the advance health care directive.
With a general durable power of attorney for financial decisions, you can choose who has the authority to manage financial matters on your behalf when you cannot do so.
The designated individual will manage accounts, make financial decisions, and pay bills.
If you recover and regain capacity, you can take over from someone responsible and trustworthy when you were most vulnerable.
A last will and testament is a fundamental estate planning document.
What does it accomplish?
With a last will, you can name someone you trust to serve as executor and administer your estate according to your wishes.
You can also choose heirs for your property.
You can select friends, charities, or other organizations if you do not have family.
Do you have a pet?
If your pet outlives you, you can use your last will to choose a caregiver and provide for its needs.
Trusts can be very useful estate planning tools for those who want more control and benefits over how and when an inheritance is distributed to beneficiaries, whether the trusts are created under a last will (known as testamentary trusts) or under a revocable living trust.
With a revocable living trust, single individuals can bypass probate and provide directly for the people, pets, or causes they hold dear through trusts.
Even if you are not affected by federal estate taxes, you may find planning for state inheritance and estate taxes relevant in your estate planning.
Why?
Some states levy taxes on property left to non-relatives and have lower exemption limits than those for the federal estate tax.
Through estate planning, single individuals can take action to ensure their chosen beneficiaries receive the most from their estates.
Prearranging your funeral allows you to decide whether you would like to be buried or cremated.
You can also arrange details and make advanced payments with the cemeteries and funeral homes.
It is essential to document these wishes clearly to reduce conflict and confusion among your loved ones after you die.
Many single individuals do not have children who can be caregivers when they get older.
This means singles over age 50 must decide how they would like to age and make plans accordingly.
Do you want to stay home with in-home care or move to a nursing home?
Either option would benefit from purchasing long-term care insurance in alignment with your financial and estate planning.
If you want to live at home, you should make modifications for accessibility to make aging at home more practical.
If you are looking for an experienced estate planning attorney who can help you navigate your estate planning, whether you are single or single again, contact our office to schedule a consultation.
Making preparations now will protect you in the future.
Everyone requires an estate plan to ensure their wishes are documented and followed.
With an estate plan, you can choose who will make your healthcare and financial decisions should you become incapacitated, as well as who will inherit from your estate when you die.
By prearranging your funeral and planning for long-term care, you can have the funds to pay for the quality of services you want.
If you are hoping to move out of your single status and into a relationship, you should avoid giving control to your new partner prematurely.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: Kiplinger (May 21, 2024) "10 Things You Should Know About Estate Planning for Singles"
REMEMBER: “The choice of a lawyer is an important decision and should not be based solely upon advertisements.”
This statement is required by rule of the Supreme Court of Missouri.
