If you are still single and do not have children, it is common to have not thought much about money. If you are also coming closer to retirement, however, it is a wise idea to begin to consider estate planning. This article reviews some of the important elements that you should consider if you are estate planning and a single adult.
# 1 – Create a Trust
While a single person is still alive, they will be the primary beneficiary of a trust. It is important, however, to name beneficiaries who will receive assets after your death. If beneficiaries are young, however, it might be a wise idea to hold the assets in a trust until the beneficiaries are old enough to handle finances themselves. In these situations, it is also important to select a trustee who will manage these assets in case you are not able to do so on your own. If you are a single individual who is engaged in estate planning, it is critical to appoint an experienced trustee who can make sure that your assets are properly controlled and transferred.
# 2 – Create a Will
It is important that everyone who is nearing retirement appoint someone as an estate executor. This individuals will make sure that your will is properly probated and cared for following your death.
# 3 – Establish a Power of Attorney
Many people who are engaged in estate planning overlook power of attorney documents, which determine who will take care of the creator in case he or she becomes incapacitated. Because you are single, it is particularly important to make sure that you appoint someone while make these decisions for you in case you become incapacitated.
# 4 – Funding a Trust
It is critical to properly fund a trust. If you fund a trust and later become incapacitate, the trustee that you appoint will be able to use funds to provide for your case. If you do not appoint a trustee, there are a number of other serious complications that can occur. Additionally, the decision about who will manage your assets will likely be decided on by a probate judge. By properly funding a trust now and appointing a trustee, however, you will make sure that your estate is properly controlled in case you become incapacitated.
# 4 – Take Estate Taxes into Consideration
Many single individuals do not greatly care if beneficiaries receive less as a result of estate taxes. If you are a single individual who wants to make sure that your beneficiary receives the maximum amount of compensation possible, it is important to take estate tax issues into consideration. To reduce the amount of taxes that are placed on assets, it is often a wise idea to consider making a lifetime gift.
Speak with an Experienced Estate Planning Lawyer
If you have questions or concerns about estate planning, you should not hesitate to speak with a knowledgeable estate planning lawyer. Contact Ettinger Estate Planning today to schedule a free initial consultation.