Single People Also Need to Establish Solid Estate Plans
Most financial experts agree that it is a wise financial move to prioritize the creation of an estate plan whether you’re married or single, but the unique concerns singles may face are not necessarily well understood.
Below are some special considerations for single people when planning for the future:
- Choose the right beneficiaries. For most single people, assets are held in their own name, but they may also have other assets that are owned in joint tenancy with rights of survivorship. When couples are married, their retirement accounts and other assets typically go to a spouse, but singles need to identify — and keep current — their designated beneficiaries to ensure their assets go to the intended parties.
- Understand how assets are distributed. If a married person dies without a will, the distribution of assets is dictated by laws within the state, which typically means the spouse will receive them. Conversely, assets owned by a single person typically are distributed to the next of kin, which may be their children (if applicable) or surviving parents or siblings. If they have no survivors, the state will receive the assets. Thus, singles need to make sure they leave specific instructions on how they want their assets distributed.
- Put important documents in place. In addition to creating a will, single people need to ensure that they have a durable power of attorney in place to allow another party to handle their financial concerns should they become unable to do it themselves.
Singles people have unique considerations to make when planning their estates. A trusted Florida estate planning attorney with the Charles Law Offices helps you review your legal options and make sound decisions based on your needs and desires.