Estate planning can be challenging, but for those without children, it often feels even more daunting according to a recent article from The Wall Street Journal, “Estate-Planning Priorities for People Without Children,”. Who will care for you if you fall ill? Who will handle your finances or make healthcare decisions on your behalf? And who will ensure your wishes are honored after you’re gone? These are difficult questions, but they don’t have to lead to uncertainty. With the right planning, you can take control of your future and protect your legacy, even if you don’t have children to lean on.
In this guide, we’ll explore three critical steps for creating an estate plan tailored to your unique circumstances as a child-free individual.
Step 1: Plan for Long-Term Care
Without children to rely on, having a plan for long-term care is crucial. Healthcare costs in retirement can be staggering, with the average 65-year-old needing approximately $150,000 to cover medical expenses.
One effective solution is purchasing long-term care insurance in your 40s or 50s. Modern policies often include hybrid options that combine life insurance with long-term care coverage. These policies may allow you to withdraw some of the funds as cash, offer a death benefit, or include inflation riders to protect against rising costs.
Investing in long-term care insurance ensures you have resources for in-home care or a nursing facility if needed. This proactive step can ease the financial burden and give you peace of mind about your future.
Step 2: Choose Trusted Decision-Makers
One of the most important aspects of estate planning is deciding who will act on your behalf if you’re unable to make decisions yourself. For those without children, this means turning to trusted individuals such as spouses, siblings, nieces, nephews, or close friends.
Key roles to assign include:
If family or friends aren’t an option, consider other professionals like estate planning attorneys, financial advisors, social workers, or even bill-paying services. It’s important to choose people who are reliable, trustworthy, and ideally younger than you, to reduce the risk of them becoming unavailable due to age-related issues.
Discuss these roles with the individuals you select to avoid surprises, and always name a backup person in case the primary choice is unable or unwilling to serve. Keep in mind that these documents are state-specific, so consult with an estate planning attorney to ensure they’re properly executed.
Step 3: Make the Executor’s Job Easier
If you don’t have children, it’s especially important to make your executor’s role as simple as possible. Start by reviewing and updating beneficiary designations on accounts such as life insurance, retirement funds, and investment accounts.
Other critical steps include:
- Writing down your funeral or memorial service preferences.
- Creating a will and, if applicable, a trust to outline how your assets should be distributed.
- Organizing your important documents in one accessible location and informing your executor of where to find them.
Taking these steps ensures your executor won’t have to sift through piles of paperwork or search your computer to carry out your wishes.
Peace of Mind for a Child-Free Life
Living without children doesn’t mean living without a plan. By addressing these three areas—long-term care, trusted decision-makers, and executor preparation—you can secure your future and protect your legacy. At Vick Law, we will create a personalized estate plan for you, no matter your family structure.
Take control of your future today. Schedule a consultation with Vick Law and let us guide you through the process of creating an estate plan that gives you confidence and peace of mind.
Reference: The Wall Street Journal (Nov. 12, 2024) “Estate-Planning Priorities for People Without Children”
