Estate Planning - What If You Have No Children?

Estate planning is extremely important whether or not you have children. Many people draw up a will in order to determine exactly what assets will go to each child and how much each will inherit. When there are no children, the situation becomes much more complicated. Intestate succession usually designates that the assets go to the spouse. If there is no loving spouse, things can become even more complex.

Decision Making Powers

Children are not only inheritors but also decision makers. When a person passes away without a will, it is their children who are left to decide what to do with their assets. Taking care of your estate planning needs as soon as possible is the surest way to make sure that your assets go where you want them to go. If you choose not to make a will, you should select a trustworthy person or persons to make important decisions.

You'll also need to choose people to handle other important decisions. You'll need a health care proxy; this is an individual who makes health care decisions for you if you're unable to make them. You also need someone to designate power of attorney over your financial affairs if you're no longer able to handle them. They'll be able to make transactions, sign contracts, and do other things related to your finances on your behalf.

Tax-Free Gifts

Many people give their children gifts using their assets. The reason they do this is that some types of assets are taxable, and someone has to pay this tax once the owner of the assets is no longer living. By giving your children a tax-free gift such as a tuition payment, you can use these assets in a way that's beneficial to someone without the added tax burden.

It's possible for a person who has no children to give a tax-free tuition gift to anyone at all, and not just their own child. The law states that the money must be paid directly to the school for tuition and books only, not room and board. Some states also offer tax-free college savings account where money can be put for the future.

Money can also be given to charitable organizations. This is a great way to help others and it leaves a legacy of good will after your death. You can choose to either make the gift during your lifetime or at the time of your passing. Make sure that your arrangements clearly state what is to be done.

Hiring An Estate Planning Lawyer

For single adults without children, it is especially important to hire a lawyer for your estate planning. There's just too much to leave to chance. Make sure that you disclose to your estate planning attorney absolutely every detail of your finances. This includes all assets and liabilities. Your lawyer and those you appoint as decision makers will be the only people with this complete information, and they need it in order to act on your behalf.