Estate Planning Concerns For Singles

According to the Census Bureau, almost half of Americans ages 15 and older were single in 2013.  This compares with about one-third in 1970.  As there are more singles than ever before, these individuals end up facing some unique estate planning issues. 

A common concern among singles is distributions.  When a spouse dies intestate the surviving husband or wife generally inherits most assets.  However, if you are single and die intestate, your estate could be distributed in ways you may not like.  “A lot of single people are socially involved and philanthropically active in their communities and have charitable intent, but if they don’t have an estate plan in place all their work dies with them.” 

Thus, in order to prevent your assets being distributed in ways you do not deem adequate, create a will and/or revocable living trust that states specifically how you want your assets to be dispersed after you die.  Also name an executor and/or trustee to carry out those wishes. 

Singles can also encounter problems with beneficiary designations.  If you are divorced, make sure your beneficiaries are up-to-date on IRAs, payable-on-death bank accounts, and life insurance policies.  If you fail to do so, an ex-spouse could end up with your assets. 

See Glenn Ruffenach, What Happens When Single People Die? Market Watch, Dec. 9, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.