Why Being Single without an Estate Plan Could be a Major Mistake
Single people need estate plans to coordinate an efficient transfer of their assets, yes. But, if you are unmarried and have no children you also need an estate plan to protect your loved ones, significant others, and yourself.
(Yes, I am an attorney, but, no, I am not your attorney. Nothing in this post constitutes legal advice or creates an attorney-client relationship. This post and this site are merely educational, informational, and entertaining.)
Single Problems
Single, unmarried, no children, she came to me upset about what to do about the house. As she explained, she told me that she and her “friend” had purchased and lived in the home for more than 20 years, had shared pets, a refrigerator, expenses, taxes, and a respectful and friendly relationship for decades. She was in her late 60s.
Unexpectedly, the close friend died without a will.
For years they had simply left the house in the name of the deceased friend, had shared expenses by agreement, and had kept their family lives separate from the other.
Now, the home, the assets, the bills were all in the deceased friend’s name.
She didn’t know what to do, and I had little to no good news to tell her.
(*these people and events are purely hypothetical or based on my own personal experiences. As an attorney, I would never disclose the personal details of my clients.)
What happens when a single person dies without a will?
Because the decedent was single without children and had never made a will, my client was left without a home, any equity, or even the right to make funeral arrangements for her closest friend. Further, she became victim of the state’s intestacy laws.
Decades of close friendship resulted in being shut out of important decisions, kicked from her home, and total devastation emotionally.
Because her friend didn’t have a will, her friend’s estate distribution was left to the state.
If you do not have a will, your state makes one for you.
If you do not have a will, then you are referred to as intestate. Testate means someone who died with a will, while intestate refers to someone who dies without a will.
Every state has laws that apply to people who are intestate. This is great news if your state’s intestacy laws line up with your own personal wishes. However, my guess is that you would rather state your own wishes than let the government dictate them to you.
Further, intestate succession laws vary widely across the United States. Most intestate succession laws start with the same basic premises: money goes to surviving spouses and surviving children.
The percentages, types of property, and allowances that go to spouses and children vary.
But what about single people who have no children? What does the state say about their intestate succession?
Intestate succession for single people with no children
After spouses and children, states’ intestate laws of succession run the gamut. Some give the money to parents, others give the money to siblings. Still others may assign that money to the state.
However, in no event does the state assign the inheritance to a long-time, close friend who claims to have an interest in the property or who claims to have an understanding with the decedent.
Plenty of people claim to know what a decedent wants at death, but under state law, there is no almost will. State laws are strict and specific –if a purported will doesn’t meet the rigid state criteria for wills, then it isn’t a will at all.
This means that it has to meet minimum writing requirements, execution minimums, residency restrictions, and a plethora of other rules.
Intestate succession for single people does not consider who your friends, roommates, long-term significant other, pseudo-family, or even pets are.
If you are unmarried and childless, then the state decides where it goes…and that is usually to parents or siblings. If you have been in a long-term committed relationship for decades but never get married, the law doesn’t care about that either. You are either married or not…have a will or don’t.
Pets and home care: who is in charge?
Even more than where your stuff ultimately goes is the person who is responsible for the maintenance of your stuff and pets. Who feeds Fido; who walks Barkley? Does anyone know that there is a cat locked in your apartment waiting for you to come home?
Are the bills due, the heat running, and your cell phone bill building charges?
Who is supposed to be taking care of your property, your fur babies, and your bills when you aren’t?
Without a will, you don’t have anyone appointed who understands that your death triggers their responsibility to act in your absence.
Unmarried Significant Other? He or she gets nothing
Estate Planning for Singles
So, what do singles without children need for their estate plan? Well, many people believe that an estate plan is the same as a will. I am here to correct that: estate plan > will.
An estate plan is a well-rounded and personally tailored set of documents to care for you in your incapacity and to provide for the administration of your assets and wishes after death.
At a minimum, a single person’s estate plan should include:
Property Power of Attorney
A durable property power of attorney is a document that allows someone else to make your property and financial decisions if you are unable to do so.
Generally an attorney-in-fact under a property power of attorney (the person who acts on your behalf) can buy and sell real estate, write checks, change accounts, or pay bills.
Health care decisions on the other hand are named by your attorney-in-fact for health care or healthcare representative.
Health Care Power of Attorney or Healthcare Representative
Like a durable property power of attorney, a durable power of attorney for healthcare decisions appoints a responsible party to make your health and medical decisions in the event you are unable to do so.
Your healthcare representative can request insurance and medical information, hire and fire medical personnel, and determine your course of treatment.
Without a health care power of attorney, your physician may not defer to your long-term friend/significant other or family member.
And, your friend or significant other may have to go to the court for permission to make your medical decisions through a guardianship. You don’t want the court involved in your personal health: get an estate plan.
Living Will
While you may often find living wills in the same document as a healthcare representative form, a living will is slightly different.
Your attorney-in-fact for healthcare can make your medical and health decisions, but your living will makes your end-of-life decisions.
A living will only springs to life when you are in the dying process and removes the difficult decisions of when to hault care or treatment.
RELATED POST: Will vs. Living Will: What’s the difference?
Will
Don’t confuse a living will with a will. A will or a last will and testament is a document that governs the distribution of your assets after your death.
While the 3 documents above are primarily aimed at preserving your dignity during life, a will is aimed at preserving your wishes and distributing your assets.
A will is where you grant a life estate for your long-time friend in your home. A will is where you appoint your friend to collect your accounts and use them for ongoing maintenance of the property.
Your last will and testament makes sure that your long-term significant other receives your vehicle and other property instead of your estranged nieces and nephews.
At a minimum, singles need the above documents.
Best Practices for Estate Planning for Singles: More than just the documents
Just having the documents isn’t enough though. An estate plan is only part of the equation. What good is an estate plan if no one knows about it.
Don’t make the documents and lock them in a drawer for your friends to find months after your death and after everything has been distributed.
Instead, having a conversation about your wishes, your end-of-life decisions, and even the distribution of your assets is an extremely important step in estate planning.
While many spouses visit my office together, and often children accompany single parents, singles come alone.
Singles should be certain to at least notify their chosen representatives of the location of their important documents and who is asked to respond in an emergency.
RELATED POST: The Importance of Discussing Your estate plan with loved ones
Who needs to be at the hospital to make medical decisions? Who did you designate to keep paying your bills? And, who will be the person in charge of your estate?
For most friends and families, knowing the gist of your estate plan before your death can make the process go much smoother.
If you are a single person in the midst of preparing your estate plan, check out this free printable death checklist to make finding your documents and information easier for your friends and family.
Singles and Estate Planning
Singletons enjoy a lot of autonomy. However, being single without an estate plan leaves your stuff and your loved ones in the hands of your state government. No one wants that!
Do your friends, family, and significant others a favor and make an estate plan. Consult with a reputable estate planning attorney in your area to create your estate plan now!
Want to know more about estate planning? Read more about why you might want to consider a trust as part of your estate plan.