The number of single people in the US is on the rise. According to the 2021 Census Report, “there are now 122 million Americans who are divorced or widowed or have always been single,” a number that has risen from 118 million in 2019. (Source)
Whether you’re single by circumstance or by choice, there are some things that you should be aware of when it comes to your future. Estate planning is something that every adult should check off their to-do list, and creating a solid plan can vary depending on your situation.
Power of Attorney
Estate planning for single women is less about making sure loved ones are protected and more about ensuring you’re protected when it comes to medical and financial decisions.
- Financial power of attorney (POA) identifies one or more people who are able to take care of financial matters if you unable to.
- Medical power of attorney or health care proxy allows someone to make medical decisions for you.
Designating people for these roles is something you should carefully consider and determining who they are now – before an emergency should occur – allows you to clearly outline your wishes. “For those who have trouble naming a proxy due to a lack of family, an estate planning attorney can help to identify a financial institution that can serve as a proxy and act as a co-trustee.” (Source)
Beneficiaries
Let’s say you have a cousin you can’t stand and haven’t talked to in 10 years. And let’s say something should happen to you and you haven’t designated any beneficiaries for your assets.
Guess what?
Your estate has now been handed over to a probate court which will decide how your assets are distributed. They’ll start with relatives and work their way through the list. And that annoying cousin could be who ends up with your hard-earned money.
Another thing to keep in mind is, if you’re single because of divorce, in some states, like Colorado, if you don’t want your money to be left to your spouse, this requires specific action. However, “a single person does not need to worry about ancillary documents, such as a marital agreement, in order to disinherit someone.” says Kim Raemdonck, owner of Legacy Planning and Probate and current President of the Women’s Estate Planning Council.
When it comes to your assets, indicating your wishes means that YOU decide what person or charity receives your money. If there are organizations near and dear to your heart, this is a great way to leave a legacy.
What Does this Have to do With Financial Planning?
When I work with a client, I’m looking at the entire picture – now and long into the future. It’s important that my clients know that everything within their control has been taken care of and it’s my job to make sure the boxes are checked.
If you have questions about living your best (financial) single life and are ready to take care of a few things you know you should…let’s talk!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
