For many people, concern about their loved ones is what inspires estate planning efforts. They want to name a guardian for their children or ensure their spouse receives certain property from their estate. Unmarried people without children often assume but they don’t need a comprehensive estate plan.
However, even without dependent family members, an estate plan can still be crucial for someone’s protection. Many single adults derive legal benefits and peace of mind from the creation of a thorough estate plan. The following are some of the reasons single adults draft estate plans.
The protection of their assets and finances
If someone has a personal emergency, they may be unable to manage their own affairs. Incapacitation from an injury or illness could leave someone incapable of paying their bills and managing their assets. Financial powers of attorney allow someone to name a person they trust to manage their finances when they become incapable of doing so. They may also want to change how they hold certain assets. That way, they don’t fall behind on financial obligations and risk legal action, the loss of assets or aggressive collection activity.
Control over their medical care
Once someone turns 18, their parents generally no longer have direct access to their medical records and do not have any authority over the treatment that they receive. If someone is incapacitated and cannot speak on their own behalf, doctors may have the final say in what medical care they receive in an emergency. Taking the time to create advance medical directives can empower a friend or family member to oversee someone’s medical care while they are vulnerable.
The benefit of family members
Siblings, unmarried romantic partners and parents may find themselves butting heads if someone has an emergency and no legal paperwork in place. Advance directives and powers of attorney make it clear what someone’s preferences are and who they want to handle their fairs. Those documents can prevent family members from fighting about the treatment that someone requires or how to manage their personal resources.
Asset protection planning helps someone preserve their resources. Life care planning helps them control their medical support and cover medical costs. Creating an estate plan is a smart move for single people and younger adults, as well as parents and those preparing for retirement.