If you are single and do not have any children, planning your estate might seem excessive and unnecessary. However, being proactive about your future is a responsible decision regardless of your status.
Estate planning can add value to your life and encourage you to set goals. With the right strategy, you can gradually add to your plan, protect your assets and have peace of mind.
Designating powers of attorney
If something unexpected happens to you that causes grave injury, you might lack the capacity to make health-related decisions. Similarly, you may not be able to effectively manage your finances. According to CNBC, regardless of your single status, you should assign powers of attorney. These individuals will make decisions on your behalf if you suffer incapacitation. They will follow the instructions you previously provided to ensure your satisfaction with the outcome.
Writing a will
A will provides you with a place where you can disclose the distribution of your assets. You can include any investments you have, as well as material belongings that have a monetary value. Clearly assigning ownership to each asset will reduce the probability of a family dispute jeopardizing the value of your estate.
Updating your plan
Over time, the circumstances in your life could create the need for updates to your plan. For example, you might marry or acquire an inheritance that substantially increases your net worth. Other changes that could require updates to your plan include relocation across state lines, the births of children or changes to tax laws.
Even though you are single, an estate plan can still have incredible value to you. Taking your time to create a custom strategy will improve its overall function in your life.