Single and Over 50? Estate Planning Is a Must for You, too.

Estate planning might seem like something only families need to worry about. However, it is just as crucial for single people, especially those over 50. Without a plan, your assets and healthcare decisions could end up in the hands of the state or distant relatives you barely know. Kiplinger makes the case that estate planning is essential for single people’s well-being and control over their assets.

What Happens without an Estate Plan?

If you pass away without a Will, the courts will distribute your property according to state laws. The state will look for your next of kin, which could mean your assets end up being distributed against what your wishes would be or even be distributed to distant relatives.  The process of settling your estate becomes more complicated without a Will naming an Executor because the process of finding an Administrator of your estate can be taxing.

What is more worrying is what happens if you are unable to handle your financial or health affairs for yourself.  A spouse, parent, or child will normally make your financial and healthcare decisions if you cannot do so, but it may be very difficult for such person to act on your behalf without formal documentation authorization them to do so. Absent documentation, the courts may have to appoint a guardian for you which could possible be someone you do not even know, and the process of obtaining guardianship can be pricey.

Choose Someone to Make Your Healthcare Decisions

A healthcare power of attorney is essential for single people. This document allows you to designate someone to make medical decisions on your behalf if you cannot do so for yourself. You can choose a trusted friend or relative who understands your wishes. Combine a healthcare power of attorney with an advanced healthcare directive/living will to formally spell out your wishes and end-of-life care preferences.

Maintain Control of Your Finances

A financial power of attorney designates someone to handle your finances if you cannot do so. This person will pay your bills, manage your accounts and make financial decisions on your behalf. When you recover from an event that has left you indisposed, you’ll be much better off having had a trustworthy Agent under a financial power of attorney.

How Do You Plan Your Inheritance?

Creating a Will is the foundation of an estate plan. It lets you decide who inherits your property, whether friends, charities, or other organizations. You can even make provisions for your pets and specify who should care for them. By naming an executor you trust, you can rest assured of your wishes going into effect.

The Importance of Trusts

While a Will is the basis of an estate plan, trusts are vital to achieve specific goals. A revocable trust can avoid probate in multiple states, for example, if you own property in multiple states.  Irrevocable trusts can also offer inheritance tax savings and/or asset protection.

State Inheritance Taxes

While federal estate tax may not currently concern many, state inheritance taxes should be considered.  In Pennsylvania, there is no inheritance tax between spouses, 4 1/2 percent tax to descendants, and the taxes go up from there for other non-immediate family members/friends. Planning for payment of these taxes is crucial to ensure that your beneficiaries receive the intended amount of your estate.

Can You Pre-Arrange Your Funeral?

You have broad leeway to prearrange your funeral and should try to do so, so that your wishes are followed and your loved ones are not left having to make decisions during a very difficult time of loss. You can specify whether you want to be cremated or buried and even arrange those details with funeral homes or cemeteries. Documenting your wishes ensures they are followed, preventing confusion or conflict among loved ones.

Who Will Take Care Of You?

Decide whether you want to stay at home with the help of in-home care services or move to a nursing home, if necessary. If you choose to stay at home, making accessibility modifications to your home can go a long way toward making single living practical in later life. Good estate planning can also help you reserve funds for these eventualities.

We Provide Estate Planning for Single People

Estate planning for single people over 50 isn’t just about distributing assets but also about securing the quality of life in your later years and protecting your wishes. Don’t leave your future to chance; contact us today to schedule a consultation and start crafting an estate plan tailored to your unique needs.

Key Takeaways:

• Ensure That Your Wishes Are Respected: Without a plan, the state and courts decide what happens to your assets and appoint decisionmakers regarding your finances and health care.
• Designate Decision Makers: A healthcare power of attorney and financial power of attorney ensure that trusted individuals make decisions if you are unable to do so for yourself and avoids having the court appoint a guardian for you.
• Direct Your Inheritance: A Will allows you to specify who inherits your property, including family, friends and charities.
• Pre-Arrange Your Funeral: Planning your funeral in advance ensures that your wishes are followed and relieves your loved ones of this burden.
• Prepare for Long-Term Care: Planning for long-term care, including funding and home modifications, is essential for maintaining independence.
• Protect Yourself in Relationships: Keep finances separate and avoid giving control to new partners too quickly.

Reference: Kiplinger (May 21, 2024) “10 Things You Should Know About Estate Planning for Singles”