Do Single People Need Estate Planning?

Home » Blog » Do Single People Need Estate Planning?
April 27, 2022 •  The Estate & Elder Law Center of Southside Virginia, PLLC
If you don’t have a spouse or children, you might think you don’t need to do much estate planning. However, if you have any assets, familial connections, or interest in supporting charitable groups – not to mention a desire to control your own future – you do need to establish an estate plan.

In evaluating your needs for estate planning, look at what might happen if you die intestate – that is, without a last will and testament. Your assets will likely have to go through the probate process, which means they’ll be distributed by the court according to the state intestate succession laws, says Hood County News’ recent article entitled “Even ‘singles’ need estate plans.”

Even if you do not have children, you may have a few nephews or nieces—or children of cousins or friends— to whom you would like to leave some of your assets. This can include automobiles, collectibles and family memorabilia. However, if everything you own goes through probate, there is no guarantee that these individuals will end up with what you wanted them to have.

If you want to leave something to family members or close friends, you will need to say this in your will. However, you also may want to provide support to one or more charitable organizations. You can just name these charities in your will. However, there may be options that could provide you with more benefits.

One option is a charitable remainder trust. With this option, you would transfer appreciated assets – such as stocks, mutual funds or other securities – into an irrevocable trust. The trustee, whom you have named (note that you could serve as trustee yourself) can then sell the assets at full market value, avoiding the capital gains taxes you would have to pay if you sold them yourself, outside a trust. If you itemize, you may be able to claim a charitable deduction on your taxes. The trust can purchase income-producing assets with the proceeds and provide you with an income stream for the rest of your life. At your death, the remaining trust assets will pass to the charities you have named.

There is also a third entity that is part of your estate plans: you. Everyone should make arrangements to protect their interests. However, without an immediate family, you need to be especially mindful of your financial and health care decisions. That is why, as part of your estate planning, you may want to include these two documents: a durable power of attorney and a health care proxy.

A durable power of attorney allows you to name a person to manage your finances if you become incapacitated. This is especially important for anyone who does not have a spouse. If you become incapacitated, your health care proxy (health care surrogate or medical power of attorney) lets you name another person to legally make health care decisions for you, if you cannot do so yourself.

Without immediate family, you might consider an independent fiduciary to ensure your wishes are met.

Reference: Hood County News (Dec. 17, 2021) “Even ‘singles’ need estate plans”

Book an Initial Call
Speak With Someone
Schedule an available time to speak with us. We look forward to meeting with you!
Book an Initial Call
Client Success Stories
Google Reviews
Danville Virginia Office

742 Main Street,
Danville, Virginia 24541

Bassett Virginia Office

3371 Fairystone Park Hwy,
Bassett, Virginia 24055

Lynchburg Virginia Office

2486 Rivermont Ave, Suite 203
Lynchburg, Virginia 24503

Integrity Marketing Solutions - Estate Planning Marketing
Powered by
magnifiercrosschevron-down