The number of adults choosing not to have children has steadily increased over recent years. In 2023, 47% of Americans under 50 don’t have children, nor do they intend to.
Many childless adults may think there is no reason to create an estate plan. If they’re married, they likely believe their spouse will receive all of their assets. However, this isn’t always true. Furthermore, there are several other reasons why it’s crucial that every adult has an estate plan, regardless of marital status or if they have children.
More than just a will
An estate plan is a set of legal documents which may include:
- A will
- Power(s) of attorney
- Advanced directives
- Trusts
- Life insurance policies
A comprehensive estate plan lays out your intentions if you pass away or become incapacitated. While estate planning may seem like a less urgent task if you don’t have children, in actuality, it may be more critical.
According to Virginia’s intestate laws, if you’re married and have no children, all of your assets will pass to your spouse. If you’re unmarried, they will go to your parents if they are surviving. If not, they pass on to your siblings or their descendants. By handing the control of your assets over to the state, it could end up in the hands of someone you’ve never met. Creating a will lets you decide where your hard-earned assets will go and ensure your legacy aligns with your values and priorities.
Another crucial aspect is planning for incapacity. By naming a power of attorney (POA), you are allowing someone you trust to manage your financial and legal matters if you’re unable to. A healthcare proxy and advanced directives outline your medical treatment preferences and give the authority to make healthcare decisions to a trusted individual. If you name your spouse as your POA and healthcare proxy, you will also want a backup in the event they pass away before you or become incapacitated
If you’re ready to start estate planning, it’s crucial to work with someone who can help you create one that is comprehensive. It will provide you with peace of mind, knowing that your wishes will be carried out.