Single Adult? Why You Need Estate Planning
If you aren’t married, you may think an estate plan is unnecessary. To the contrary, estate planning is a responsible way to make sure that those you love, who have already suffered your loss, are less encumbered with other issues due to your passing, regardless of your marital status, age or economic bracket.
Here are Q&As addressing some of the most common concerns:
Q. Overall, why does a single person need estate planning?
When you take the time to create a thorough estate plan, your loved ones will avoid probate, and therefore be spared attorney’s fees and court fees. A trustee in charge of your living trust will oversee all of your last wishes, instead of leaving a judge to distribute your property through probate.
Most adults accumulate assets as they age (including cash, retirement plan, investments, personal property, real estate, etc.). Who will get those assets when you die? And who will take care of your funeral arrangements?
Q. What if I have minimal assets?
Even if you don’t own much, if you were to die without an estate plan your property could go through the probate process and potentially be awarded to a beneficiary you never would have chosen.
Q. What happens if I’m disabled or have an end-of-life situation?
Estate planning also involves planning for the possibility of incapacity or disability. By creating an advance health care directive, you can let your physicians and family members know how you would like to be treated in medical situations when you cannot necessarily make the decisions for yourself.
Q. Who will manage my finances if I cannot?
A general power of attorney allows the person you appoint to act on your behalf and is often included in an estate plan to ensure that someone is present to handle your financial matters. This may mean handling your insurance, business transactions, settling claims, and/or employing professional assistance.
Q. Do I need a will or a living trust, or both?
A will is a legal document detailing an individual wishes after they die. A living or revocable trust does not require going through probate; if your assets are properly titled, they would pass directly to your spouse upon incapacity or death, without the need for any court intervention. As for a will, your attorney can advise whether to include both it and a living trust in your estate plan, which can allow you to take advantage of each tool’s benefits. The use of a living trust is less clear-cut, so discuss the pros/cons and your specific situation with your attorney.
Q. How does estate planning help my heirs with taxes and expenses?
With proper estate planning, it can help minimize taxes and expenses associated with transferring your assets after your death, avoiding the costly probate process.
Q. What if I have children?
Take the time to think about who will willingly take on the roles and responsibility of raising your children in your absence. A guardian has the responsibility to protect the physical and emotional interests of your children. A trustee has the responsibility of protecting the assets within the trust that you created.
Q. How can I ensure that my pet is cared for?
While you cannot leave money to pets, you can still ensure they are properly cared for with estate planning, such as leaving your pet to someone in your will or setting up a pet trust, which ensures money is specifically designated for pet care.
Q. What if I want to leave assets to charities?
A charitable trust is an option which allows you to direct your assets toward philanthropic causes while reaping potential tax benefits.
Q. What if I want to take care of my grandchildren?
See our article “Taking Care of Grandchildren through Your Estate” which discusses a range of issues that can help you.
Specialized Estate Planning for Single Adults
Taking the time and effort to create an estate plan is one of the most thoughtful steps you can take for your family and loved ones. Meet with the skilled estate planning attorneys at Mortensen & Reinheimer, PC to discuss your needs and concerns. Please contact Mortensen & Reinheimer, PC at (714) 384-6053 to make an appointment, or use our online contact form. Our website is http://www.ocestateplanning.net.
About the author:
Tamsen R. Reinheimer, Attorney, is a Certified Specialist in Estate Planning, Trust & Probate Law (The State Bar of California Board of Legal Specialization). She has significant experience in all aspects of estate planning, trust administration, and probate. Contact Tamsen at tamsen@ocestateplanning.net.