Estate Planning For Singles

Estate planning for singles can be just as important as for married people. Single people have unique goals, considerations, and challenges for estate planning and protecting their legacies after death. If you are a single person, you may find it necessary to utilize a wide range of estate planning tools to effectively protect your assets and ensure that your estate will be distributed according to your wishes rather than according to state law. To begin the process of crafting an estate plan tailored for your needs, consider contacting an experienced Texas or Florida estate planning attorney from Fleurinord Law, PLLC, today by calling (888) 904-2297.

What Are the Different Types of Wills? 

A Last Will and Testament (will) is used to specify how a person’s property and assets will be distributed after his or her death, making the will a crucial part of any comprehensive estate plan. There are several different types of wills that a person can utilize in an estate plan. The following are some of the most common types of wills that can be used to protect a person’s assets and property after death: 

• • Simple will — The most basic type of will, the simple will is a great starting point for many individuals. This will provides a framework for distributing assets and designating guardianship for minor children. Simple wills are easy to write and ideal for individuals with few assets. Though they are easily amended or expanded, these wills typically only allow for basic provisions
  • Living will — This document is much more comprehensive than a traditional will and is ideal for end-of-life planning. Using a living will, a person can specify his or her wishes regarding medical care in the event of incapacitation. 

• Testamentary trust will — Using this type of will, an individual can place certain assets into a trust that will later be distributed to beneficiaries. These wills are advantageous for individuals with young beneficiaries, as conditions can be placed on the inheritance to allow for gradual distribution based on age or other circumstances
• Pour-over will — Generally, the pour-over will works in tandem with a revocable living trust, allowing individuals to account for any assets that are not directly distributed to beneficiaries by pouring them over into the trust 

Understanding which will is right for your needs and goals is essential. The right will can effectively protect a person’s legacy and ensure that loved ones will be able to receive the person’s property and assets according to his or her wishes. 

What Type of Will Is Best for a Single Person?

Estate planning for singles is important because, without a will in place, all of a person’s assets and property will be distributed based on intestate succession laws in the state of Texas or the state of Florida. This means that the deceased person’s assets would go to his or her closest relatives, typically parents, children, or siblings, without regard to the person’s wishes. Under intestate succession laws, other loved ones — significant others, friends, and more distant relatives — may not be considered during the distribution of the estate.

Single people who wish to create an estate plan to protect their assets, property, and loved ones often ask which will is right for them based on their unique personal goals and financial affairs. Generally, for smaller estates, a simple will is sufficient for designating beneficiaries. A trust can be created in conjunction with the will to provide further protection for assets and property. A living will may also be added to specify a person’s wishes in case that person becomes incapacitated and unable to make medical decisions. The type of will that is best for a single person depends entirely on the nature of that person’s estate. An estate planning attorney from Fleurinord Law, PLLC, may be able to help make that determination.

Who Should Be Your Beneficiary if You Are Single?

Naming beneficiaries is a primary concern with estate planning for singles. With married couples, the spouse is often automatically named as the beneficiary of the estate should one spouse die. Single people, however, may have a greater number of options for naming a beneficiary. Many single people without children will often name their parents or siblings as beneficiaries, but a person may name anyone as a beneficiary of an estate. These can include friends, significant others, and relatives like cousins, stepsiblings, or nieces and nephews.

What Is the Best Trust for a Single Person?

While having a will goes a long way toward solving the issue of asset and property distribution, single people may want to place their assets in a revocable living trust. Without this estate planning tool in place, a person’s assets and property will be subject to probate. The probate process can be costly and time-consuming, so avoiding this process is a key consideration for many individuals. Not only does this type of trust avoid probate, but it also allows the grantor to revoke, change, or terminate the trust during his or her lifetime. This flexibility is invaluable for many single people. 

What Is the 5×5 Rule in Estate Planning?

The 5×5 rule in estate planning for singles refers to a trust clause that gives a beneficiary the right to withdraw either five thousand dollars or 5 percent of the fair market value of the trust per year. This rule is designed to provide the beneficiary with a minimum dollar distribution, particularly if the value of the assets in the trust has declined during a given year. The 5×5 rule ensures that the beneficiary can access an additional amount of money without ruining the value of the estate. Moreover, distributions may be tax deductible. 

Contact an Estate Planning Attorney Today

As a single person, you have unique concerns related to estate planning and protecting your legacy after your death. A major focus of estate planning for singles is understanding how to craft the strongest estate plan possible for the single person’s unique needs. If you are a single person in Texas or Florida and are ready to create a comprehensive estate plan that is suited for your long-term goals, consider contacting an experienced estate planning attorney from Fleurinord Law, PLLC, by calling (888) 904-2297 to schedule a consultation today.