This excellent article from Bankrate.com
highlights the need for singles to write their estate planning
documents. Often people consider writing their Will once they get
married, or they have children, and this article explains that once
these events happen, the law will usually take care of loved ones should
you die without a Will. However, singles, who often have a larger
estate than they think (accident insurance and life insurance policies
will pay out), do not always have an obvious beneficiary. In 30
minutes using the services at this web site, your estate planning needs
can be taken care of.
Young, Single
and in Need of an Estate Plan
December 3, 2004
Jay MacDonald
Bankrate.com
Remember that hilarious
episode of "Friends" where Ross convinces Rachel, Phoebe and the others to sit
down and write their wills and designate durable power of attorney to each other
in the event something should happen to them?
Of course you don't;
it never happened. Come on, who would believe that?
The sorry fact is,
singles don't bother with estate planning, period. Heck, part of the joy
of being single is the devil-may-care, no-strings-attached lifestyle.
Even the term "estate planning" sounds like something their grandparents
would do.
Well, not to be
overly grim, but you swinging singles need to plan for the Reaper every
bit as much as Mr. and Mrs. Suburbia. In fact, in the opinion of Kyle
Krull, a Kansas City attorney and estate planner, singles need it more.
"It's even more
important than it is for marrieds, and here's why: In a marriage, it is
pretty much assumed that your spouse, even in the absence of any
planning, is going to be the person that the court is going to appoint
as the guardian over your personal and health care decisions and
conservator over your financial matters.
"But if you're
single, who is it going to be? If you're age 18 and over, you need to
appoint the people to make your personal, health care and financial
decisions or the court is going to take a stab at it themselves, and it
may not be the party you would want."
Consider these two
scenarios. If you're single without kids and you die without a will
("intestate" in legalese), your assets would likely flow to your next of
kin in this order: surviving parents, siblings, nieces and nephews. If
you are divorced with children, your assets would likely go to your
children as next of kin, and should something happen to them, your
assets could wind up with your ex-spouse as their next of kin.
That's right, if you
don't specify otherwise, your ex-spouse (and his or her new spouse)
could get your checks when you check out.
Now that's no
laughing matter, friend.
Who'll be there
for you?
When Minneapolis money coach Ruth Hayden asks her single clients why
they haven't addressed an estate plan, they usually plead poverty.
"Most singles figure
they don't have much money, this is not a big deal and they usually
don't do planning," she says. "Usually they find they have more than
they think."
Hayden starts by
adding up their assets. Singles often have a life insurance policy
through an employer, perhaps a nominal retirement account fed by their
paychecks, equity if they own a home and often assorted accidental death
benefits from credit cards and memberships.
She then explains to
them who is likely to end up with this modest windfall once their estate
has been settled: a parent, a sibling, a niece or nephew.
"Once they realize
that they have these things and that their next of kin will be in charge
of cleaning everything up and then will get whatever's left over, they
pay attention," she chuckles. "That person is also going to dislike them
if they haven't made any plans. I tell my clients, if you don't like
these people, don't have a will and don't make any plans. But if you
like these people, have some order to this."
We plan in order to
designate who will be responsible for our personal, health care and
financial decisions when we are no longer able to do so ourselves. If we
don't, the probate court and typically a gaggle of lawyers will be only
too happy to make these calls for us (Krull calls this the "lawyer
full-employment program"), in the process making our private affairs a
matter of public record.
Krull estimates that
seven out of 10 Americans have no estate plan at all, and most of the 30
percent who do have not kept them up to date with current tax laws. You
may have every intention of leaving your nephew your Jimi Hendrix
autographed guitar, but without a will, the court is going to sell that
off in an estate sale so the money can be distributed. It can be
heartbreaking to see relatives at estate sales "buying back" family
heirlooms that you fully intended to pass along, someday.
Worse, if you are a single parent of a minor, the probate court will
likely turn your child over to your ex-spouse, the surviving biological
parent, and may even appoint him or her to manage the inheritance.
When preparing a
will, Hayden recommends referencing an addendum in the will where you
list who will get your various assets and personal property (and be sure
to include your pets). That way, should you make changes, you won't
incur a legal fee to do so.
For More Information Contact::
PartingWishes.com
Email:
support@partingwishes.com
Internet:
http://www.partingwishes.com
