One of the most common misconceptions we hear is when people say, “I’m single so I don’t need to have an estate plan.” Nothing could be further from the truth. Just because you don’t have an immediate family of a spouse or children doesn’t exclude you from the many benefits of having an estate plan.
Often time’s people think only in terms of “assets” when they think about an estate plan. There are a lot of other decisions that need to be made on your behalf well beyond your assets. And while asset distribution is important, it’s just one of the many aspects of estate planning for someone who is single.
When you are living an independent lifestyle, you’ll need to plan for retirement differently than someone who is married or has a life-partner, according to ABC Action News in the article “Single? How you should plan differently for retirement.”
If you have a “partner” then there are some additional areas to consider when developing an estate plan. Those with a partner can, in most situations, rely on their partner to help out with expenses and be a caregiver should you become ill. However, when you are single or without children you need to plan in advance and you need to have a well thought-out plan.
Perhaps the most important decision to make and document in a living will estate plan is about your health. Making sure the decisions about your health and well-being are made the way you want them to be made, if you are not able to make them for yourself, is critically important. Having this thought out well in advance so you know who to have someone call to take over if something happens where you are incapacitated or ill is very important.
The next most important are is to be sure the things you own, personal possessions and assets, are given to the people (or charities) you want to have them. Regardless of the size of your estate, someone will need to get your assets. Without a plan, they will simply be donated to a charity of choice of the courts most likely. Everyone has someone in their life or a favorite charity they would like to see get their assets. Defining this up front makes this easy for the executor of your estate or the courts.
If you rely solely on your own income, it’s necessary to have an emergency fund in place. It’s also a smart idea to have disability insurance. That way, if you need to stop working, you will have some income. Unless you have another stream of income or significant personal assets, you’ll need the benefits of disability insurance, especially if you are disabled and can’t work for an extended time.
Someone turning 65 has a nearly 70% chance of needing long-term care in remaining years. It’s important to have a network of reliable friends so that someone you know and trust will be able to be named power of attorney for your health care decisions. And if you have Long Term Care Insurance, it will be important for them to know so they can help facilitate the use of it should you qualify.
Whether you are single or married, you should have a plan in place for finances and retirement. Make an appointment with an estate planning attorney to ensure that you have the proper documents in place for your estate plan. These documents should include a will (or living will), power of attorney, healthcare power of attorney, and other such documents. When these are in place, you will be protected against the major issues that will occur as you get older. Now you can rest assured things will be in place to take care of you and to benefit others as you see fit…while you are alive and when you pass away.