If you’re widowed, divorced or single, having an estate plan is important especially if you don’t have any children. If you’re single and pass away without a Will, you’re considered to have died “intestate.” This means a probate court will determine what to do with your assets according to the laws of the state in which you reside. If you want to ensure your wishes are honored when you die, it’s time to start putting together an estate plan.
The Importance Of A Will When You’re Single
Surveys show that less than 60% of working Americans close to retirement have prepared a Last Will and Testament. For married couples, the unexpected death of a spouse is devastating but, in most cases, the surviving spouse can retain control of jointly-held assets if the deceased does not have a Will.
For singles, a Will is even more essential for protecting your assets and those who may depend on you. If you have minor children, a Will enables you to name their guardian in the event of your death. If you have pets, your Will can include arrangements for their care. However, a Will only covers property subject to probate. Assets like your FERS pension, TSP and life insurance, are distributed to your named beneficiary. That’s why it’s important to keep your beneficiary designations up to date.
“If you own property jointly with a life partner, the survivor only retains their share of the property when the other dies.”
What If You’re Not Married But You Have A Life Partner?
In most states, unmarried couples don’t have rights to a life partner’s assets when one of them passes away. If you own property jointly with a life partner, the survivor only retains their share of the property when the other dies. The deceased partner’s share becomes part of their estate and will be distributed according to the their Will. Without a Will, property will be distributed by a probate court according to your home state’s hierarchy for receiving assets.
What If You’re Single & Become Unable To Make Your Own Decisions?
If you become mentally or physically incapacitated, you need to prepare a Durable Power of Attorney (DPOA) naming someone you trust as your agent. This enables them to make financial decisions specifically listed in the document. However, your DPOA agent cannot make decisions about your healthcare. To ensure your wishes are respected when you’re unable to make healthcare decisions, you need to prepare an Advance Healthcare Directive according to your state’s law. Otherwise the state will look for a family member to make medical decisions for you.
Connect with an FRC® trained advisor to learn more.
Source: https://www.lawdepot.com/resources/estate-articles/estate-planning-for-singles/
