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| Unmarried persons who do not have living children or grandchildren often underestimate the challenges associated with their estate planning. The following questions must be answered by these unmarried individuals: To whom should I leave my assets? Who should be my personal representatives and/or trustees? Which of my beneficiaries should pay my estate’s death taxes, if any? Who should be my named health care and financial powers of attorney? This article addresses each of these important questions. If you are a single person without issue (children, grandchildren, etc.), you are at liberty to leave your assets to whomever you choose, including but not limited to your relatives, friends or charitable organizations. Payment of your estate’s death taxes, if any, should be carefully considered, especially if you are making large specific bequests which would make payment of these taxes from your residual estate inequitable. Selection of the right personal representatives and trustees is also essential to successful estate and trust administration. If you select the wrong fiduciary, your estate or trust assets may be wrongfully dissipated. In addition, health care and financial powers of attorney are very important documents to have in place since you may need these agents to make crucial medical decisions on your behalf as well as control your financial matters if you are ever unable to do so on your own. Estate planning for single persons without children or grandchildren does have some advantages in terms of flexibility. However, no one should be lulled into thinking that this flexibility translates into simplicity. Estate planning for a single person often demands more attention to detail than estate planning for married persons or single persons with children or grandchildren. We have found that a Will is usually sufficient for unmarried persons with smaller estates, but that creating a Living Trust may be a better option for persons with larger estates. Your estate planning documents should be reviewed regularly, particularly when there have been changes in the law or in your personal situation. As a single person without children or grandchildren, it is very important that you understand how your assets are currently held and how they will pass after your death. If you have any questions regarding this topic, please let us know. |