MN Special Estate Planning Needs: Older Single Adults Without Children

Now that most firms have had adequate time to start offering all of their estate planning tools to same-sex married couples after the passage of new laws, its time to revisit the special needs of older single adults many of whom are without children.

Recent statistics indicate that 53% of all women and 26% of all men age 65 and older in America are now single. As The Wall Street Journal notes, That amounts to 18 million divorced, never-married or widowed seniors.

Everyone who falls into this category needs to speak with their Minnesota estate planning attorney to be sure their unique situations and needs have been appropriately addressed.

Unique Concerns of Many Older Single Adults

State intestacy laws can have a major impact on the estates of childless seniors. Unlike married couples with one or two children, older single adults without kids — who fail to draw up Wills may wind up having all of their possessions and wealth go to their states of residence if they have no living parent or sibling. If youre wanting a special niece or nephew to inherit all of your worldly goods, you need to record that fact in formal estate planning documents so those individuals can receive those gifts from you

Singles must be extra careful when naming a medical power of attorney and a (durable) financial power of attorney. While married couples normally name one another or an adult child to assume these duties, a single senior without children must choose wisely among his/her closest friends to handle these critical tasks. Since these close friends may not live in the same city, seniors must keep their lawyers updated about the passing of these named individuals so that new people can be formally substituted in their place in all testamentary documents;

Single seniors need to regularly review how their property is titled. Is all of their property in their name or is it held in a joint tenancy with someone else? Clients need to discuss how all of their property is titled as they grow older to be sure its managed properly and eventually inherited by the proper parties;

They must routinely review the named beneficiaries in their insurance policies, investment accounts, and 401(k) plans. Far too many older people forget to update their Wills and trusts with the names of all proper beneficiaries after various people pass away. If youve been recently divorced, be doubly sure youve updated this information even though most states have established a presumption that previous spouses should not be able to inherit from you;

They should give serious thought to creating pour-over Wills, clearly designating all of their proper beneficiaries. This type of Will allows testators to specify how various estate expenses should be paid prior to the remainder going to the named individuals;

Single seniors should be told about any federal or state estate taxes owed. In 2015, single seniors wont owe any federal estate taxes unless their individual estates are worth more than $5.43 million, minus any taxable gifts . . . made during [their] lifetime;

They need to fully understand the advantages of creating a revocable living trust. Seniors often worry greatly about the probate process so its best to explain that they do have viable options to help their named survivors inherit from them without having to bear the possible burdens of going through probate;

Be sure your estate plan clearly names specific friends you want to find new homes for your pets and to receive all of your most valuable or sentimental possessions. As noted above, when you fail to create a Will or complete estate plan as an older adult without children, you increase the odds that everything you have will just go to the state.

Although its not part of any legal duty, your compassionate estate planning attorney may also encourage all senior clients (especially those without any children) to establish regular, informal contact with neighbors or others by phone so that medical or social services help can be summoned as soon as its needed.