It’s a common misconception to think that if you don’t have children, you don’t need to worry about estate planning. But the fact is, it can be even MORE important to do estate planning if you have no children.
Some of the common thoughts behind this mistaken belief may take one of these forms:
“If I die, everything will pass to my spouse anyway, so why bother?”
“I’m single with little wealth, so who cares who gets my few meager assets?”
“Estate planning is an expensive hassle and it doesn’t even benefit me because I’ll be dead, so I’m better off letting a judge sort things out.”
This kind of thinking ignores several basic facts about both estate planning and life in general. Regardless of your marital status, if you don’t have children, you face potential estate-planning complications which those with children do not. And this is true whether you’re wealthy or have very limited assets.
So even if you’re childless, consider these inconvenient truths before you decide to forego estate planning.
Whether you’re rich, poor, or somewhere in between, in the event of your death everything you own will be passed on to someone. Without a will or trust, your assets will go through probate, where a judge and state law will decide who gets everything you own. In the event no family steps forward, your assets will become the property of the state.
Why give the government everything you worked your life to build? And even if you have little financial wealth, you undoubtedly own a few sentimental items (including pets) you’d like to pass to a close friend or favorite charity.
However, it’s rare for someone to die without any family members stepping forward. It’s far more likely that some relative you haven’t spoken with in years will come out of the woodwork to stake a claim. Without a will or trust, state laws establish which family member has the priority inheritance. If you’re unmarried with no children, this hierarchy typically puts parents first, then siblings, then more distant relatives like nieces, nephews, uncles, aunts, and cousins.
Depending on your family, this could have a potentially negative outcome. For instance, what if your closest living relative is your estranged brother with serious addiction issues? Or what if your assets are passed on to a niece who’s still a child and likely to squander the inheritance?
And if your estate does contain significant wealth and assets, this could lead to a costly and contentious court battle, with all your relatives (and their lawyers) fighting over your estate—which is exactly what’s happening with Prince’s family right now.
Finally, if you have a spouse and your assets are passed to him or her, there’s no guarantee they’ll live much longer than you. In the event of their death without a will or a trust, everything goes to his or her family, regardless of whether you like them or not.
Do you really want your spouse’s sister, brother, parents (or the new spouse he or she marries after you die) inheriting what you’ve worked so hard for? Maybe you do. Maybe you don’t. The point is, without any planning, you lose all control of what happens.
Dedicated to empowering your family, building your wealth and defining your legacy,