Conversations about estate planning often focus on spouses and children, but what if someone is single and doesn’t have kids? Whether never married, divorced, or widowed, estate planning needs for single people are different than for people who are partnered or married.
While the basic estate planning steps are the same, there are some extra considerations for single people throughout the process.
Decide who inherits assets
If there’s no will in place, state law determines who inherits assets. For single people without children, that typically means parents, siblings, or extended relatives. By creating a will or trust, that person can direct who will receive their assets. They may still choose a family member, or they could choose a close friend or a charity, or a combination of those options.
Choose an executor or trustee
For married individuals, their spouse or an adult child often serves as executor of their estate. Single individuals can choose a close friend, a family member, or even a professional fiduciary as their executor and/or trustee. It’s important to discuss the role with them in advance and be sure they’re comfortable handling your affairs.
Plan for medical and financial decisions
When a married person is incapacitated, their spouse is often the default person who makes medical and financial decisions on their behalf. Single people don’t have a default person to make those decisions, so it’s important to proactively appoint someone to that role. The estate planning process includes several documents, including a durable power of attorney that enables the appointed person to manage finances, a medical power of attorney for healthcare decisions, and an advance directive that outlines wishes for end-of-life care.
If a single person does not have these documents in place and hasn’t appointed anyone to make decisions on their behalf, the court may appoint someone to do so. By planning ahead and appointing people they trust, single individuals can ensure their wishes are honored.
Ensure access to online accounts
Digital legacy is an important part of any estate planning conversation, but again, there are some special considerations for single individuals. People who are married or partnered may have joint access to accounts, but that’s less common for single individuals. Thus, it’s important to plan for access to your online accounts, including social media, email, financial apps, and more.
As part of the estate planning process, your trust and durable power of attorney should include the power to manage digital accounts and assets. The person you name as your trustee and agent under your durable power of attorney should have access to a secure list of your accounts and passwords, or know where these can be located. You may also want to consider specifying what should happen to any social media accounts, such as memorializing them or deleting them.
Review and update your plan regularly
As life changes, it’s important for single people to review and update their plan. Relationships evolve, assets fluctuate, and laws change. As that happens, it is important to review the executor, power of attorney, and beneficiaries named in your documents to stay on top of any necessary updates.
Estate planning as a single person means taking control of the future. For single people who don’t have a spouse or children, the plan needs to be clear, legally sound, and reflective of the person’s wishes.
