The world is changing in many ways, the least of which is not how people live in terms of being married or staying single. In fact, the statistics show that the growing trend around the country is to either stay single or return to single life. That said it is important to consider the significance of estate plans for single people.
before the unexpected ever happens
In order for an individual's wishes to be satisfied upon passing there are certain documents that should be in place long before the unexpected ever happens. From directing the administration of probate to protecting valuable assets, estate planning is the key to preserving wealth through multiple generations.
fortunes can be lost
Even the intricate details of good tax efficiency are vital to maintaining accumulated wealth and assets in a continued state of protection. Anything less will simply not do in today’s world where fortunes can be lost in a flash. For example, tax efficiency can help to ensure that an estate’s tax burden is minimized when death occurs. This is a key strategy that will protect heirs and future generations from unnecessary financial burdens.
Perhaps the worst thing that can happen is that of a principle passing where there are no instructions or a comprehensive estate plan in place. The lack of a will or trust will typically place a grantor in a precarious situation. It will place heirs in an even more precarious position. When an estate is lacking a clear-cut plan the end result may be that the state ultimately determines how assets are dispersed.
control of assets
A single person is particularly in a difficult position when there is no established estate plan. In this case the state is often free to determine whom the closest relative or grantor may be. In extreme cases the state may actually take control of assets when no beneficiary can be determined. That is why it is so critical for a single person today to have a will and estate planning in place.
The will is in many ways the core of a complete and comprehensive estate plan. It assigns an executor and determines how indeed assets will be distributed. This removes any uncertainty and helps to protect against misguided distribution. The POA or power of attorney is a key document that is vital to good planning too.
the future of your estate
This document will ensure that day-to-day decisions such as in finances are managed when a single person is unable to mange them on his or her own. Choose a power of attorney carefully as this one decision alone can have a big impact on the future of your estate. Other essential documents that should be considered in estate planning include a health care directive, insurance considerations and retirement accounts such as an IRA or 401k and the associated documents.
single wealthy people
Finally, the complexities of estate taxes must be carefully considered to ensure the maximum levels of tax efficiency. Along with taxation issues a single person should also set up if applicable a trust as a way to transfer assets to a particular beneficiary. When it comes to today’s changing demographics and the increasing number of single wealthy people across the country a little planning can go a long way in protecting assets and saving money on estate taxes.