Who gets your prized record collection? Your beloved pet? Your hard-earned savings? If you’re childless, you might assume estate planning isn’t for you. But that’s not true! In fact, it may be more important for childless individuals and couples to create estate plans to ensure their wishes are carried out, instead of their assets being distributed according to state law (which may mean going to parents, siblings, etc.). Let’s discuss the specific estate planning documents that can tackle the needs of childless people and couples.
Understanding the needs of childless people and couples
Some people mistakenly believe that estate planning isn’t necessary if you don’t have direct heirs, such as children or grandchildren. But that’s not true! In fact, it may be more important for childless people to create estate plans to ensure their wishes are carried out instead of being distributed by state law.
The specific concerns of this demographic may include:
- Protecting partners/spouses (especially in non-traditional relationships).
- Caring for aging parents or other family members.
- Supporting close friends or chosen family.
- Providing for pets and appointing guardianship for pets.
- Leaving a legacy to charities or causes.
- Planning for potential incapacity.
All of the above aspects can be addressed through estate planning! Let’s discuss what exact specific estate planning documents can tackle these unique needs.
Key aspects of an estate plan for childless people and couples
So, what estate planning documents should childless folks put in place? Well, it’s really not much different from what people with children do, but here is what to consider:
Last will and testament (i.e., “a will”)
A will is a document that can devise assets, determine final arrangements, and even appoint guardianship of pets! You can override the intestate laws of your state—so if you want your BFF to take all of your money when you die, you can make sure that happens through a will. Plus, if you don’t have children but you do have pets, you can ensure they are taken care of through the execution of a will, too. You can appoint an owner of your pet and devise assets to that pet guardian to ensure the pet’s expenses are also taken care of.
Trusts
Executing a trust is a more complex and specific way to devise assets. You can execute one while you are still alive or make it go into effect after you die. Trusts can help avoid probate and make sure assets go to the right people. In addition, if you are caring for elderly parents, trusts can be a great way to ensure that those you care for are still taken care of once you’re gone.
Power of attorney (POA)
You can appoint a person to manage finances and legal affairs should you become incapacitated. Without a power of attorney document, the laws of your state will dictate who should make these decisions on your behalf, which will likely be spouses, parents, or siblings. If you have a boyfriend or girlfriend or best friend, you may prefer that they make these decisions for you instead.
Medical proxy
As a person without children, you may want to ensure that the right people are making medical decisions on your behalf should you become incapacitated. For example, if you have a life partner that you would prefer to make those decisions for you, you should set up a medical proxy that appoints them to make decisions for you. Otherwise, a spouse (if you have one), parent, or sibling will be appointed.
Healthcare directive (Living will)
You can also execute a living will, which basically lists out how you would like to be treated if you are incapacitated and need to receive end-of-life care. For example, you can address issues like life support, resuscitation, and pain management. Without a living will, your state will have specific laws determining who will make that decision. It is usually a spouse (if you have one) or parents/siblings. So, if you want to explicitly list out these instructions yourself instead of having someone else do it, you can do so through a living will.
Beneficiary designations
There are certain accounts and assets that allow you to appoint a beneficiary, such as life insurance policies and retirement accounts. It is important to list a beneficiary for all of the correct financial assets to make sure they pass to the people you want them to.
What happens when you die without an estate plan as a childless person?
One thing to understand as a person who doesn’t have children is what happens to your stuff when you die if you DON’T have will or trust in place. If any person dies without a will or trust, their property is distributed through “intestate” laws, which is a fancy legal word describing the laws that govern property distribution upon death. The intestate laws of each state vary—how property passes in one state may not be the same in another state.
For example, in Florida, if there are no direct descendants of a deceased person, but they do have a spouse, then all of their estate will pass to their spouse. (Fla. Stat. § 732.102). If there is no spouse and no descendants, then assets in Florida will pass to the person’s parents. If there are no parents, then it goes to their siblings. If there are no siblings, then it goes to grandparents; if there are no grandparents, then aunts/uncles and nieces/nephews. (Fla. Stat. § 732.103).
As you can see, if you’re childless and don’t have a spouse, estate planning is especially important. Without a plan, your belongings could go to family members like parents, siblings, grandparents, aunts, uncles, nieces, or nephews. An estate plan ensures your wishes are respected, regardless of who your closest relatives are.
Planning for specific situations
Single individuals and unmarried couples without children have distinct estate planning needs. Here is what to know:
Unmarried couples without children
Boyfriend/girlfriend relationships or other unmarried relationship statuses are not addressed in intestate laws. This means that without an estate plan in place, your boyfriend or girlfriend will not inherit anything from your estate. Instead, your assets will pass through your blood relatives, usually starting with parents and/or siblings. However, with a valid will or trust, you can ensure that assets pass to your partner instead of through intestate laws.
Single individuals without children
People who are single (i.e., are not in a romantic relationship or marriage), should also consider getting an estate plan. Without a will or trust, assets will pass to their blood relatives, such as parents or siblings or grandparents or aunts/uncles/nieces/nephews. And maybe this isn’t the ideal situation for them. Maybe they want their stuff to pass to their chosen family, like very close friends.
Married couples without children
According to state law, assets typically pass 100% to the surviving spouse. This is good news because it generally means that spouses are protected under state law.
Regular review and updates
Regardless of your childrearing status, you should always periodically review your estate plan and update it accordingly. It is generally recommended that you review at least annually and any time there is a major life change, such as changes in relationships, finances, laws, etc.
For example, let’s say Matt and Ashley are a childless married couple who create separate estate plans around the age of 30 years old. They devise all of their assets to their respective siblings. However, if they unexpectedly get pregnant at age 40 and have one child, they will want to review their existing estate plans and likely want to make changes.
The bottom line on estate planning for childless people and couples
As a childless couple or person, the default state laws may not align with your preferences. If you don’t have kids or a spouse and you aren’t close with your relatives, such as parents and siblings, then getting an estate plan is especially important for you. For example, as a childless single individual, maybe you want to appoint your stuff to your best friend or your boyfriend/girlfriend instead of your property passing to your parents or siblings under state law. Taking the steps to get an estate plan in place will give you the ultimate peace of mind for whatever life throws your way.
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
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