Estate Planning for Singles: Securing Your Future, Your Way

Estate planning is often associated with marriage, kids, and accumulated wealth, but the truth is, it's a vital process for everyone, including singles. Whether you're young or old, rich or poor, your unique circumstances deserve careful consideration. Let's delve into the why and how of estate planning for singles, covering both life and death scenarios: 

Everyday Matters That May Affect You:

Income Streams & Assets:

Who will receive things such as your home, cars, bank accounts, investments, and personal property when you pass? Even if you don't have substantial savings, chances are you receive some form of income. Consider what happens to that income after you pass away, including paychecks or other disbursements. If you want a say in who receives those things, and who will oversee the process, a Trust or Will is in order.

Living Arrangements:

Do you live with roommates, friend, relatives, or a partner? If so, do you have written arrangements for what happens if the relationship falters? Who owns your residence? If it’s shared, do you understand the terms of that shared ownership? Who gets to stay if the relationship breaks down? If you (or someone else) has been paying toward portions of the residence of utilities, have those gone toward equity, contributions that can be paid back, spent rents, or something else? And for those who will receive your things when you pass, will those people be able to distinguish what's yours from what’s not?

These issues can be addressed through proper estate-planning tools such as cohabitation agreements, deeds, and a will or trust.

Healthcare Needs:

In case of medical issues, do you have someone designated to make choices when you can't? From anesthesia decisions to surgery risks, having a trusted person in place is crucial. You can designate a trusted friend or loved one to help you with these through use of a Medical Power of Attorney.

Similarly, do you have wishes for how your medical decisions would be handled in the case of a terminal illness or coma? Physicians and medical teams are unable to make certain decisions without written directives from you. Here is where an Advance Directive (sometimes called Living Will) comes in.

Financial Responsibilities:

Bills need to be paid, even if you're not there. Surprisingly, some creditors will not accept payments from a third party without written authorization. You’ll want to plan for someone to manage your finances if unforeseen circumstances arise, such as a car accident; if you're away on vacation and payments become due; or if you become incapacitated. A Financial/General Durable Power of Attorney can provide you with the ability to name a trusted friend or loved one to help in these scenarios.

Children:

If you have minor children or children with severe disabilities, do you know who will take care of them if you pass away or become incapacitated? You can nominate a guardian to care for their health and daily needs and a conservator to manage their finances, but such nominations need to be completed clearly and accurately to be effective.

Pet Ownership:

Consider your furry family members. Who has the legal right to enter your home and care for them if you're unable to? Make these arrangements clear, and ensure someone knows how to access your home in case of an unforeseen accident or incident. A Trust and other estate-planning tools can help ensure that all your household members are cared for in the event of your death or incapacity.

Business Assets:

More and more of us are self-employed these days. If that describes you, or if you have any interest in a business, now is the time to make sure the business has an up-to-date operating agreement or similar written documentation that includes planning for a manager’s/owner’s incapacity and/or death. Without such documentation, many times the business assets are dissipated in the process of attempting to wind down and dissolve without clear direction.

Services/Funeral:

Do you have a picture in your mind of what your passing may be like and the services afterward? Without written directions, your loved ones may not know what to do to best celebrate your life. Make arrangements for your funeral services with a Disposition of Last Remains.

 Estate planning for singles is about taking control of the present and securing your future. By addressing both life and death scenarios, you're ensuring that your wishes are known and respected. Don't let the misconception that estate planning is only for married couples deter you – it's for everyone, including you.