Just like married couples and families, single people should consider estate planning to protect their assets and provide detailed instructions for transferring assets to named beneficiaries if they pass away. A comprehensive plan for singles in Mineola or Tyler, Texas, includes strategies enabling trusted people to act or make decisions in their best interests if they cannot.
According to a Kiplinger article, "Estate Planning for Singles," certain factors, such as having family members or adult children, can affect how a single person structures an estate plan. This blog outlines why estate plans are necessary, core estate planning strategies, and how to tailor a plan to fit a single person's needs.
Estate planning protects three areas of life: wealth and assets, beneficiaries, and well-being. There are go-to strategies for each area, and each strategy has laws or nuances to consider. Regardless of your marital or family status, protecting your financial future, setting up ways to benefit heirs, and establishing a plan just in case empower you to live life with peace of mind.
Trusts - created and funded by the "grantor," protect assets by transferring ownership to the trust and establishing a "trustee" to manage or administer assets. Beneficiaries named in the trust receive the assets. There are several types of trusts, each structured to fulfill a need. A revocable living trust offers wealth protection and access while the grantor is alive. An irrevocable trust protects assets and can shield them from taxes but does not allow the grantor access and cannot be updated or canceled once funded. Read our blog, Asset Protection Trust: Secure Your Wealth and Future to learn more about trusts.
Wills - an estate planning staple to legally document beneficiaries and distribution instructions after the creator dies. Wills are not designed to protect assets or well-being during an individual's life.
Additionally, having a will, trust, or both protects your wishes and intentions, potentially avoiding Texas probate. Passing away without a will or trust places your estate in a court's hands to determine how your assets are distributed.
Powers of attorney (POAs) - a financial durable power of attorney appoints a trusted person to handle financial matters if you are physically or mentally unable. Legally establishing a monetary representative to decide and act on your behalf protects assets from misuse of your assets. A medical power of attorney, also called a healthcare POA or healthcare proxy, protects your well-being if you are incapacitated. This POA appoints a representative or advocate to make medical decisions and inform medical providers of your wishes on your behalf.
Advance directives - Protect your well-being as legal documents detailing your medical values and wishes, religious beliefs on treatments, and instructions to perform or not perform life-saving procedures.
Consider the age of the person you may want to serve in their role. Can they take on these tasks if and when needed if they are your age? A younger, trusted person may be better, although age does not guarantee availability.
Personalize your living trust or powers of attorney, appointing a trustee or representative who suits your needs. You can name a family member, friend, or adult child. Consider the age and health of a potential trustee or representative. You can hire a professional, either an estate planning attorney, a trust company, or, in some states, someone licensed as a "professional fiduciary."
Consider including a beloved pet in your living trust or will. What about your pets? An estate plan can also deal with issues of particular concern to singles who own pets. You can use your will or create a pet trust to name a guardian and provide financial support for a
furry or feathered friend.
Protect the three most important areas of your life: wealth and assets, beneficiaries, and well-being. Work with an experienced Texas estate planning attorney and tailor a plan to fit your single life. Regardless of your marital or family status, protecting your financial future, setting up ways to benefit heirs, and establishing a plan just in case empower you with peace of mind. For an experienced estate planning attorney in Tyler or Mineola, book a consultation with Bradley Campbell.
I invite you to book a consultation with Campbell Law Firm. Together, we can create a plan that brings peace of mind and security for your future and those you care about.
Reference: Kiplinger (Feb. 17, 2024) “Estate Planning for Singles”
