Are you under the assumption you don’t need an estate plan? If you are single or don’t have many assets, this impression may seem logical. However, single individuals also need to take steps to ensure their wishes are carried out and their assets are protected in the event of death or incapacitation.
The following are some essential estate planning tips tailored for single people.
Establish a will or trust
Creating a will or trust is crucial for individuals to dictate how their assets should be distributed upon passing. Without a will or trust, property is distributed based on state law, which is likely not what you want.
Designate beneficiaries
Designate beneficiaries for all your financial accounts, retirement plans and insurance policies. This will establish your wishes and make your assets pass directly to the designated beneficiaries outside of probate, saving time and potentially reducing estate taxes.
Choose an executor or trustee
Select a trustworthy individual to be the executor of your will. If you have a trust, you need a trustee. This individual will manage your estate after you pass.
Consider a durable power of attorney
Granting someone durable power of attorney allows them to take over medical and financial decisions if you are incapacitated. Be sure to choose someone you trust.
Prepare advance directives
Draft documents such as a living will and healthcare proxy to outline your wishes regarding medical treatment in case you cannot communicate your preferences. With an advance directive in place, your healthcare preferences will be both known and enforceable.
Creating an estate plan is necessary for all adults, even if you are single. Your rights deserve to be known and honored just as much as anyone else’s do.