Estate Planning for Single People With No Children

Why Planning Matters More When You Are Single

If you die without a will, state law decides who inherits. Maine's version of the Uniform Probate Code is a typical example. With no surviving spouse or descendants, the estate goes first to your parents. If no parent survives, it goes to the descendants of your parents, which means siblings and their children. After that it moves to grandparents and their descendants. If no one qualifies, the estate passes to the state.

Two things follow from that. First, a friend, an unmarried partner, or a charity is not on the list. Second, your estate may go to relatives you barely know. Our guide on what happens if you die without a will explains the order and how it differs by state.

Who administers the estate is also decided by law when there is no will. Under the Maine statute, priority goes to a surviving spouse and then to other heirs, so a close friend would not be first in line. A will lets you name your own executor.

The Documents to Put in Place

A living trust is not required for most people. It can help if you own real estate, want privacy, or want a successor trustee to step in during incapacity. Our will vs. living trust guide compares the two. For costs, see what estate planning costs.

Choosing the People You Trust

With no spouse or adult child, you have more freedom, and more responsibility, in choosing. You will need people for three roles, which can be the same person or different ones:

• Executor. Carries out your will and settles your estate. See how to choose an executor.
• Financial agent. Manages your money if you cannot. This person acts under your power of attorney.
• Health care agent. Makes medical decisions for you when you cannot.

Siblings, nieces and nephews, close friends, and professionals are all options. Name a backup for every role, and talk to each person first so they agree to serve. If no one in your life fits, an attorney, bank, or trust company can serve as executor for a fee. Our executor fees guide explains how fees work.

Choosing a friend is fine, and the documents let you do it. Make sure each person knows where your papers are. Our letter of instruction and emergency information list give them what they need.

Who Gets Your Assets

Your will lets you leave property to anyone: siblings, nieces and nephews, a partner, a friend, or a charity. If you want to leave something to an unmarried partner, it must be in writing, because intestacy law does not include them.

Many of your largest assets may not pass through your will at all. Retirement accounts, life insurance, and accounts with a payable-on-death or transfer-on-death designation go to whoever is named on the form. Review each one, and name a contingent beneficiary in case your first choice dies before you. Our guide to what a beneficiary is explains primary and contingent designations. If a non-spouse will inherit a retirement account, see inherited IRA rules, because the rules for non-spouses are different.

Think about what happens if a beneficiary dies first. Naming "my estate" can send the money back through probate. Naming a second person, or a charity, avoids a gap.

If You Cannot Make Decisions

Without a spouse or adult children, it is not obvious who would step in during an illness or injury. According to the American Bar Association, statutes in 44 states set an order of family members who can act as a default surrogate for medical decisions. In more than 20 of those states a close friend familiar with your values can act if no family is available. The exact order depends on your state, and a friend may not qualify in yours.

For money, there is no default at all. Without a power of attorney, your family or friends may have to ask a court to appoint a guardian or conservator. The U.S. Department of Justice calls guardianship a last resort because it removes a person's legal rights. A signed power of attorney and health care proxy let you pick who acts and avoid court. Our guide on legal documents after a dementia diagnosis explains why to sign while you still can.

Planning for Long-Term Care

If you have no spouse or children nearby, think about who would coordinate your care, and how you would pay for it. Medicaid reviews transfers of assets in the 60 months before an application for nursing home coverage, so giving money away shortly before you need care can delay eligibility. See the Medicaid look-back period. After death, states can seek repayment of certain Medicaid costs from the estate, which can affect what you leave. See Medicaid estate recovery.

These rules are technical and vary by state. A short consultation with an elder law attorney is worth the cost if long-term care is a real possibility.

Pets, Digital Life, and Final Wishes

• Pets. Name who will care for them. See what happens to pets when an owner dies.
• Digital accounts. Set up legacy tools and a password manager so someone can reach your accounts. See how to set up a legacy contact.
• Funeral wishes. Write them down, and consider prepaying. See how to prepay funeral expenses.
• Where things are. Tell your executor where your will, accounts, and documents are kept.

A Simple Order of Steps

1. List your people. Write down who you would trust for each role, with a backup.
2. Sign the health care documents first. A health care proxy and living will protect you in a sudden emergency.
3. Sign a durable power of attorney for finances.
4. Make a will, naming an executor and your beneficiaries.
5. Check every beneficiary form. Retirement accounts and insurance come first.
6. Write your letter and list. Record wishes and where things are.
7. Review every few years and after any major change.

Frequently Asked Questions