Single adults who don’t have children might assume that they don’t need a will. Without a will, you won’t have any say in where your assets go. You also won’t be able to name someone to handle your affairs if you are unable to do this due to incapacitation. Even your choices regarding medical care might be up in the air due to your not having an estate plan.
There are several components that you need to consider when determining what you should do for an estate plan. You should handle them one at a time so that you are certain everything is set up how you want it.
Components of an estate plan
There are many components for you to think about when you are creating an estate plan. The will is the cornerstone of the plan. It should include a plan for any assets that aren’t covered by other aspects. You can transfer many assets to your loved ones and charities through trusts. There are various types of trusts, so find out which one meets a specific need. Many financial accounts have a payable on designation that outlines who will get possession of it when you pass away.
The last components of the estate plan have to do with your life and assets if you can’t make decisions for yourself. You can give a person power of attorney over your health care. You can also set a power of attorney for your finances. The individuals you choose for these duties should be familiar with your wishes. You should also set up your living will, which outlines what you want for medical care if you can’t voice your wishes.
Passing away without an estate plan
The state has a set order in which your relatives would get assets if you pass away without an estate plan. If you have relatives within the first grouping covered on the intestate law, those individuals will receive your assets. If nobody in that grouping exists or can be found, they will move on to the next grouping. This continues until all possible heirs are exhausted. The state will ultimately receive your assets if there aren’t any beneficiaries.
Even if you think you have plenty of time, now is the best time to get things together. This is the only way that you can ensure that your assets go where you desire when you aren’t here any longer.