These days, more and more people are choosing to live their
lives as unmarried singles. Many even have long-term relationships and children
without feeling the need to get married. This is a personal decision, and there
are no right or wrong choices. However, you should know that, if you are single
without a spouse to care for your estate once you pass, it is very important
that you plan your estate carefully, and the sooner you do so, the better. No
one likes to think about dying, but the fact of the matter is that everyone
will die at some point, and it’s not always expected. Thus, it’s best to be
prepared.
Tip #1: Have a Legal Will
To begin with, you absolutely need to sit down with a lawyer
or professional estate planner and create a will. If you do not have a will at
the time of your passing, then there’s a good chance your money and other
assets might not go where you want.
When there isn’t a will in place, a legal process known as
“interstate” comes into play. Under interstate laws, the state determines who
receives any assets that exist, and that person is usually the closest living
relative of the deceased.
Since the state has no way of knowing how close you are with
your family, this course of action may or may not be what you would have
wanted. A will gives you control over what goes where and who gets what after
you die.
Tip #2: Designate Power of Attorney
Another thing you’ll want to do is to be sure and specify in
your will who will be granted power of attorney. The person you grant this to
will be the person who will be able to make all of your financial decisions and
other important decisions concerning your assets, legal matters, and debts
after you die.
When someone is married and does not specify power of
attorney, it’s no big deal. That role automatically goes to the spouse. In the
event that you’re single, you’ll need to choose that person yourself well ahead
of time. Choose someone you trust and who has good financial management skills.
You could also consider hiring a trust professional to fill the role.
Tip #3: Keep Accounts Documented and Up to Date
Finally, make sure that for all your major accounts, such as
savings accounts, insurance accounts, retirement accounts, and IRAs, you have
documentation of who you want as the beneficiaries.Your best bet is to make
these decisions early on and to update if anything changes.
If you can follow these tips and have a solid estate plan in
place, then everything should go according to plan and according to your wishes
when you do pass on.
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