Many people think estate planning is only for married couples or parents. If you are single and do not have children, you may assume there is little need to create a plan.
Estate planning can address questions that arise at different stages of adulthood. Buying a home, accumulating assets or caring for an aging parent can affect who would manage your affairs and who would receive your property after your death. Without an estate plan, state law may determine some of these outcomes.
When it may be time to create an estate plan
Changes in your personal and financial circumstances can make estate planning more relevant. The following milestones can raise estate planning questions for single adults:
- Becoming responsible for your own healthcare and finances
- Building wealth through savings, investments, retirement accounts or homeownership
- Starting a long-term relationship or caring for an aging parent or relative
- Launching or acquiring a business
- Wanting to designate someone you trust to make decisions if you become incapacitated
These events can affect who would manage your finances, receive your property or make healthcare decisions if you become unable to act on your own behalf.
When your estate plan may need an update
An estate plan may need updates as your circumstances change over time. Documents you created years ago may no longer match your life today. The following events may mean your estate plan no longer reflects your wishes:
- Beginning or ending a serious relationship
- Buying, selling or inheriting significant assets, including real estate
- Starting, selling or expanding a business
- Losing a person named as your executor, trustee or agent under a power of attorney
- Experiencing major life changes, such as retirement, relocation or changes in family relationships
Even without a major life event, your finances, relationships and wishes can change over time.
Estate planning involves more than inheritance
The right estate plan depends on your life and goals. Some people use a will to explain who should receive their property after death. Others create a living trust because they own a home or want to avoid probate.
For many people, estate planning is less about leaving property behind and more about choosing who would make decisions and carry out their wishes. As your life changes, your estate plan may need to change too.