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A: Being single does not mean that your estate planning is any simpler than if you were married. In fact, singles usually have more complicated estates if they do not have close natural heirs, such as a spouse or child. Moreover, it is even more important to have Advance Directives in place to plan for incapacity. A complete estate plan includes not only a Last Will and Testament, but a health care proxy, power of attorney, and living will.
A health care proxy allows a person to appoint an individual to make medical decisions for them if deemed incapacitated by a physician. For married couples, the spouse is often the first choice to serve in this role. But, for a single person the choice may not be as obvious and signing a Health Care Proxy makes it clear who will be in charge of those decisions. A Living Will is a statement of one’s wishes about end-of-life decisions. Taking the time to think about this in advance and put it on paper helps make certain your directions are followed if the situation arises.
Beyond decisions about health care, empowering someone to make financial decisions is also a vital part of an estate plan. Most single individuals hold their assets in their sole names, not jointly with anyone else. For this reason, naming an agent under a power of attorney is crucial to ensuring your needs are met if you become unable to manage your financial affairs. Giving someone the power to act on your behalf should not be taken lightly. Carefully consider who you appoint as your agent and the specific powers granted.
A complete estate plan addresses death as well. A Last Will and Testament dictates who will handle the deceased's assets and how those assets are distributed. It is crucial to understand which assets pass through a Will and which outside of a Will. The assets that pass through a Will are those in one’s sole name with no designated beneficiary. Such assets can include bank accounts, brokerage accounts, and real estate. Usually retirement accounts and life insurance policies have designated beneficiaries. Accounts with designated beneficiaries pass outside of the Will directly to the beneficiaries. Since a single person often holds assets in their sole name, at least some of their assets pass through their Wills.
As a single senior, you might consider establishing a revocable trust rather than a simple Will. You maintain complete control during your lifetime and appoint a successor in case of incapacity or death. A trust has the advantage of avoiding probate so assets pass almost immediately to chosen beneficiaries. Avoiding probate is important where there is a need for seamless transition or family make up would complicate probate.
Every Will must go through probate, meaning a Surrogate Court judge validating the Will. Any time a Will goes through probate, the deceased's closest blood relatives must sign a waiver. This is an issue if you are not leaving assets to close family members or when don't know the whereabouts of your closest blood relatives. A single person may have a great support group consisting of dear friends instead of family. It could be burdensome to find first cousins or have to rely on them not to contest a Will. A trust is much easier to administer than the complexities of Surrogate's Court and avoids having to locate long lost relatives.
Unmarried individuals need an estate plan as much, if not more, than their married counterparts. Seeking the advice of an estate planning attorney ensures your affairs are in order during your lifetime and at your death.
Brittni Sullivan, Esq. and Dylan Stevens, Esq. are attorneys at Burner Law Group, P.C. focusing their practice areas on Estate Planning and Elder Law. Burner Law Group P.C. serves clients from Manhattan to the east end of Long Island with offices located in East Setauket, Westhampton Beach, New York City and East Hampton.