Part 2 of 2: Planning for the Practical Costs of Incapacity and Death
In Part 1, we talked about two of the most common estate planning mistakes: failing to plan at all, and relying on joint ownership as a substitute for a real plan. Both of those mistakes have consequences. But the third one — overlooking liquidity — is the one that tends to blindside families the most.
Here’s the reality most people don’t think about: becoming incapacitated or dying is expensive. There are medical bills, care costs, legal fees, taxes, and ongoing household expenses that don’t stop just because you’re no longer able to manage them. And if the assets you own aren’t easily converted to cash, the people managing your affairs may be forced to make difficult decisions under pressure.
Mistake #3: Not Planning for What Things Will Actually Cost
Many of my clients have built real wealth — in real estate, in investment accounts, in property they’ve accumulated over a lifetime. What they sometimes haven’t thought through is what happens to day-to-day expenses, care costs, and estate settlement fees when those assets aren’t liquid.
Real estate can’t be sold overnight. Investment accounts may be tied up in the estate process. And in the meantime, bills arrive on schedule regardless.
For single adults, this challenge is more acute. There’s no spouse managing the household finances while you recover. There’s no second income covering costs while the estate is sorted out. If you haven’t planned for these gaps, the people you’ve named to help you may find themselves in an impossible position — not because they aren’t capable, but because you didn’t leave them the resources or the authority to act quickly.
What Good Liquidity Planning Looks Like
Planning for liquidity doesn’t have to be complicated, but it does need to be intentional. A few approaches worth discussing with your advisory team:
Life insurance: A well-structured policy can provide immediate cash to cover expenses at your death, without waiting for the estate to be settled. For single adults with no dependents, the beneficiary might be a trust — ensuring those funds are managed according to your instructions.
Long-term care coverage: The cost of extended care — whether in-home or in a facility — is one of the largest financial risks for adults over 60. Having a plan for how this gets funded protects both you and the people responsible for your care.
Lines of credit: Established before they’re needed, a line of credit can give your trustee or financial agent the flexibility to manage short-term expenses without being forced into a rushed asset sale.
Trust structure: A properly funded revocable living trust keeps your assets accessible to your trustee without going through probate — which means expenses can be addressed promptly, not after months of court process.
The People in Your Plan Matter as Much as the Documents
For single adults, the question of who manages your affairs isn’t just a legal one — it’s a deeply personal one. You may not have an obvious candidate for every role. You may have people you trust for some things but not others. You may be concerned about burdening the people you love.
These are exactly the conversations I have with my clients. Part of what I do isn’t just drafting documents — it’s helping you think through who belongs in which role, what authority they’ll need, and how to set them up to succeed. For clients who don’t have local family support, that conversation is often the most valuable part of the process.
A Plan That Works When You Need It To
Estate planning done well isn’t about paperwork. It’s about making sure that if something happens to you — whether a health crisis or your death — the people you trust have the authority, the resources, and the instructions they need to take care of things the way you would have wanted.
For single adults navigating this without a built-in support structure, having the right plan in place isn’t just good legal hygiene. It’s the difference between your wishes being honored and a court deciding what happens next.
I’d welcome the opportunity to help you build that plan. Call my office at 561.935.9763or visit www.TheCurranLawFirm.com to schedule a consultation.
— Maura S. Curran, Esq. | Maura S. Curran Law | Jupiter, FLEstate Planning & Administration | 561.935.9763 | www.TheCurranLawFirm.com
