Let me tell you, estate planning is a big deal, and it’s not just for families or married couples. Singles, you need to pay attention. It’s crucial to think about who will step in and make decisions for youif you can’t do it yourself. Who’s going to get your money and property when you’re gone? Your parents? Your siblings? Maybe, maybe not. If they’re not an option or if your relationship with them is complicated, you need a solid plan. Don’t worry; we’re here to help you navigate this.
Choosing the Right Decision Makers
You’ve got to choose the right people to handle things if you can’t. If you don’t, the court will step in, and believe me, you don’t want that. The court will follow state law and pick someone for you. Here’s what you need to do:
Agent under a Financial Power of Attorney
This person handles your financial stuff—signing checks, opening bank accounts, handle legal matters, all that. You need someone responsible, detail-oriented, and with the time to do the job right. No trustworthy family or friends? Hire a professional. Simple as that.
Agent under a Medical Power of Attorney–Health Care Surrogate
If you can’t make medical decisions, someone has to do it for you. You pick this person in a medical power of attorney, not a judge. Make sure they’ll follow your wishes and are available when needed. If no family fits the bill, look to a close friend or a trusted professional. Just remember, some professionals, like doctors, might be restricted by state law unless there’s an exception.
Agent under a Medical Power of Attorney–Health Care Surrogate
If you can’t make medical decisions, someone has to do it for you. You pick this person in a medical power of attorney, not a judge. Make sure they’ll follow your wishes and are available when needed. If no family fits the bill, look to a close friend or a trusted professional. Just remember, some professionals, like doctors, might be restricted by state law unless there’s an exception.
Choosing the Right Recipients
Without an estate plan, your state decides who gets your stuff. That could mean your money and property go to people you didn’t intend to benefit. Generally, it goes to a surviving spouse first, then descendants, parents, siblings, and their kids. But why leave it to chance?
Got a life insurance policy? Name a beneficiary, or it might go to your estate, dragging you into probate—a costly, time-consuming process. Same with your retirement account—no beneficiary name could mean probate and unwanted tax consequences.
Proper Tax Planning
The tax system favors married people, no question. They get unlimited tax-free transfers between spouses and can add their deceased spouse’s exemption to their own. As a single person, you only have your lifetime exemption ($13.6million in 2024).
You can still give away up to the annual exclusion amount ($18,000 in 2024) without paying gift tax. Married couples can double that by splitting the gift. But if you’re wealthy, you need to start tax planning early and get it right.
We Are Here to Help You
Estate planning puts you in control, laying out exactly what happens during your life and after your death. It can be customized to make sure your unique wishes are fulfilled. Don’t leave your legacy to chance. Call us today to learn how we can help protect what matters most to you.
Let’s get it done, folks.
