Single people often delay the process of developing an estate plan – they may have no dependents and are frankly too carefree to bother (in denial, their mothers and married friends might say).
This lack of planning isn’t a good plan – many singles have considerable assets that need responsible managing, now and in the seemingly impossible post-demise future. Let’s examine a five-point battle plan.
The first task is to seek out a lawyer and nail down both a power of attorney and a healthcare proxy. What happens if you suffer an accident or fall prey to a debilitating disease? Someone must manage your affairs and pay the bills; a particularly trustworthy individual is needed to make medical decisions, potentially dire ones, if you’re not able. If you don’t have these agreements in place, get them done promptly.
Next comes a will – power of attorney and health proxy agreements are voided by your death. Similarly to the first case, the key here is selecting an effective proxy – in this case, your executor. The soundest approach is to leave your estate to a revocable trust. Let’s examine this more closely.
While you’re alive, the revocable trust’s beneficiary should be you. In planning for your death, you can name any number of people to be the beneficiaries. Unmarried people in long-term relationships often select their partner as heir. Family members, like nieces and nephews, or close friends can also be chosen. Importantly, you’ll need to name a successor trustee to run the trust after your final demise. This can be a difficult job, so make the selection carefully and assure that your candidate fully understands the responsibilities involved.
For more information, please read:
5 Estate Planning Strategies For Singles | Forbes