Estate Planning for the Unmarried: Top 5 Must-Consider Tips

When most people think of estate planning, their mind jumps to married couples with 2.5 kids and a white picket fence. But here’s the deal: estate planning is just as crucial for those singles as it is for married folks. No matter your relationship status, estate planning should be on your radar.

Let’s dive into the top 5 things all unmarried folks need to consider when plotting out their estate:

1. Who’s Your Person?

If you’re unmarried and something happens to you, who would you want making the big decisions? Whether it’s health-related choices or financial matters, designating a Power of Attorney ensures someone you trust is at the helm. What happens if you become incapacitated without a Power of Attorney? Your family will have to get permission from a judge to make decisions on your behalf. That’s going to be expensive, time-consuming, and public.

2. Beneficiaries Matter

While spouses often default as beneficiaries in many legal scenarios, that’s not the case for the single crowd. Check your retirement accounts, life insurance policies, and any other accounts that require beneficiary designations. Make sure they’re up-to-date and reflect your current wishes. (Pro tip: It’s easy to forget about that old 401(k) from two jobs ago. Track it down!)

3. The Will: Not Just a Formality

Having a will is essential. Without one, your assets could be distributed based on state law, which might not vibe with your personal wishes. Your closest living relative could get all your money when you really wanted it to go to the ASPCA. Whether it’s leaving your prized comic book collection to your niece or making sure your best friend gets your savings, spelling it out in a will is the way to go.

4. Healthcare Directives

No one likes to think about becoming incapacitated, but it’s a reality we can’t shy away from. A healthcare proxy, living will, and HIPAA waiver clarify your wishes regarding medical intervention and end-of-life care. Again, it’s all about ensuring your voice is heard, even if you can’t speak for yourself. Without one, your loved ones are going to have to go to court to get permission to make decisions on your behalf.

5. Estate Taxes

If you’ve done well for yourself, consider the potential implications of estate taxes. An unmarried person who passes away with more than $12.92 million will be subject to federal estate taxes. [IF YOUR STATE HAS AN ESTATE TAX, MENTION THAT HERE]. Only with proper estate planning can you minimize or reduce entirely what goes to Uncle Sam at your death.

Start Your Estate Plan Today

Remember, whether single, mingled, or it’s complicated – everyone’s estate planning journey is unique. The first step with our office is to book a Peace of Mind Planning Session. This is a 1-hour session with me. You’ll share your goals and concerns, and we’ll present your options and our unique flat fee pricing. Then, if we decide we’re a good fit to work together, we’ll discuss next steps. Mention this blog post and we’ll waive the $450 session fee. Make your appointment here.