If you’re single with no kids, you may be wondering: Why the heck would I need an estate plan? I don’t have any dependents to take care of. Well, while that may be true, you still likely have assets that you’ve worked hard to accumulate. And without an estate plan, the state says how your stuff will be divided. And without a spouse and/or children, stuff could wind up in the wrong hands (according to you).
Intestacy laws will kick in–and you might not like it
Without an estate plan, your state’s “intestacy” laws will kick in and determine how to divvy up your assets. Every state is different. But when a person who dies doesn’t have a spouse or child, their assets will likely go to either parents, siblings, or a combination of both. Here’s an example of what two different intestate succession statutes look like:
Florida: If you die as a single person in Florida with no spouse or kids, your stuff will go to your parents in equal parts. (Fla. Stat. § 732.103).
Illinois: If you die as a single person in Illinois with no spouse or kids, your stuff will go to your parents and siblings in equal parts. (755 ILCS 5/2-1).
As you can see from the two varying state laws above, if you were a resident of Florida, all of your stuff would go to your Mom and Dad. If you were a resident of Illinois, all of your stuff would be split between Mom, Dad, and siblings. If you don’t like the outcome of your state’s laws, then an estate plan is for you. You can override these laws with an estate plan.
Create a trust or will to override intestate laws
If you don’t like the potential outcome above of your parents getting all of your assets or your parents + your siblings sharing it, then you should get an estate plan to state otherwise. You can override intestate laws and make your own rules about who gets your stuff. You can do this with a will, a trust, or a combination of both.
Wills are simple and straightforward and help you say who gets what when you die. However, they do not avoid probate. On the other hand, trusts also say who gets what when you die, but they can get really specific and only allow certain people assets under certain conditions (like turning 21, being sober, etc.). Trusts are able to avoid probate but they are more expense to formulate in the first place.
Determine who should make medical decisions on your behalf
Another reason you should have an estate plan as a single person is to appoint a medical proxy to make medical decisions on your behalf. If you were to become incapacitated or disabled, by law, there will be a list of people who will be in “line” to become your medical decision maker if you are unable to do so for yourself. Again, this is dictated by state law, so you might not like who is the number one on your state’s list.
For example, here is the order of people who may be selected to make decisions on your behalf for Florida if you become incapacitated:
- The patient’s spouse
- An adult child of the patient
- A parent of the patient
- The adult sibling of the patient
- An adult relative of the patient who has exhibited special care and concern for the patient and who has maintained regular contact with the patient and who is familiar with the patient’s activities, health, and religious or moral beliefs
- A close friend of the patient
- A clinical social worker
- (See Fla. Stat. § 765.401)
Create an advance healthcare directive to avoid unwanted medical outcomes
If you don’t want person #3 on your state’s medical proxy list to make your medical decisions for you, then you should consider setting up an advance healthcare directive which includes appointing a medical proxy and also making statements through a living will that says what you would want to happen to you (life saving treatments, life support, spiritual requests, etc.). Creating both of these types of documents for your estate plan is a great step especially if you really don’t want your parents or siblings or someone else making decisions on your behalf.
Giving power and assets to unwanted relatives
The main point to understand is that without an estate plan as a single individual, your stuff and the power over your health can land in the wrong hands much easier than someone who is married with children. Your state will dictate who gets what and it’s typically parents, siblings, or a combination of both. And when it comes to making medical decisions the first in line to take on that role are parents and siblings. So for those folks with toxic relationships with mom, dad, bro, or sis, this is especially important for you. Or maybe it’s as simple as your BFF is truly your sister, so you’d prefer that she gets your stuff and make your decisions–not hard feelings to your family. Whatever the case may be it’s important to think about it and be armed with the information to make the best decision for you.
The bottom line
So, there you have it–why single people need estate plans. It’s not just for married people with children. It may be especially important for single folks who are not close with certain parents and/or siblings and want to avoid passing on assets to them or allowing them control over future medical decisions. And the best news? Getting an estate plan is a breeze and can even be cost effective
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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