Just because you are single without children doesn’t mean you don’t have assets…potentially a large number (and value) of assets. You can be single in your younger years or in your later years. Generally the older you are the more assets you acquire. But if you don’t have children, what do you do with all these assets and wealth you have accumulated?
To whom will you leave your worldly goods, when there are no children and no spouses? This can be a challenge, says nj.com in “Single without kids? Who should be your heir?” The first thought is usually to benefit family members, and siblings and their children. But what if you are worried that the siblings will quarrel, or if they are all much older than you?
This is not an unusual situation today and an estate planning attorney will be able to help you examine your options. There are a variety of options available to you that should be considered and explored. Often times these may not be readily apparent but upon further investigation and discussion, you might be surprised at the choices you have.
The first place to start is considering family members. If you have older siblings and leave money to them, there could be some other factors to consider. Let’s say your siblings are dependent upon programs like Medicaid. If you give them significant assets or money you might put their financial situation at risk. And if the older sibling dies shortly after receiving the inheritance, then the money will be part of their estate and would go to their heirs. You should understand what would happen if they pass away and make sure you are good with your assets going to these other individuals.
If you do decide to leave your assets to your siblings and they have a properly prepared will or estate plan by an estate planning attorney, then the assets will be distributed according to the terms of the will. This should be understood well in advance so everyone knows the potential outcome that could occur upon their passing. They might want to determine if there is likelihood that the will could be contested or not. If not, then you can make an informed decision based on how you want your assets distributed.
Another avenue to consider is making a charitable donation to an organization you have been involved with during your lifetime or one that shares your values and goals. A scholarship to your college or to a local community group would be greatly appreciated and may create a lasting legacy to your memory. You can also give with “warm hands” to nonprofit organizations, which is making charitable donations while you are alive. This way you can enjoy seeing the impact of your gift while you are alive.
It is important to always consider the tax ramifications of any estate plan. There may be an inheritance tax in your state that could have a significant impact on the inheritance. Will your heirs be able to afford that? This is a question that should be explored beforehand so you will know what will happen and if any other changes should be made to help protect your heirs.
It is always a good idea to meet with your estate planning attorney and discuss where you are and the various options you have available. It starts with goals and building plans to help you achieve these goals. The beauty of proper estate planning is there are a multitude of options available to accomplish your goals. The key is to put them together in the best possible way to give you what you want when you pass away. This is also a great time to incorporate what you want to have happen for your funeral and any services…all this can be part of a well-designed estate plan so your wishes will be carried out the way you want.