Creating your estate plan (will, trust, and powers of attorneys) is not just for people who have children or direct heirs. When you don’t have children or direct heirs, estate planning can seem less urgent, but it’s just as critical. Estate planning when you’ve got no children or heirs requires thoughtful decisions to ensure your assets are distributed according to your wishes, and your medical and financial needs are met. This article explores some of the things to consider when you do not have any obvious beneficiaries.

Medical Emergencies for Estate Planning When You’ve Got No Children or Heirs

Well-crafted powers of attorneys protect you if a medical issue or emergency renders you incapacitated. One of the most important aspects of estate planning when you have no children or heirs is ensuring you’re protected if a medical issue or emergency renders you incapacitated, i.e., unable to make health care or financial decisions for yourself because you are too sick to do so. This is such an important piece of estate planning that most people neglect. But, truly, it is the most important thing to get in place to make sure that you are protected for the duration of your life.

Did you know that if you do not have robust, properly written health care powers of attorneys and a financial power of attorney in place that a court may have to appoint a guardian and conservator for you if you are in a position where you cannot execute these documents? Unfortunately, sudden medical events happen and it is a difficult position to be in when you no longer have the mental capacity to execute these important documents. Even if you do not lose mental capacity, if you are ever in an emergency situation, slopped together, last minute documents can put you in a vulnerable position. If you haven’t planned ahead, you might find yourself without someone you trust to manage your affairs. Don’t leave this to chance—getting robust powers of attorney in place is essential for safeguarding your future.

Designating Beneficiaries Prevents the Government Getting Your Assets for Estate Planning When You’ve Got No Children or Heirs

Designating beneficiaries of your choosing keeps your assets from going to the state upon your death. In estate planning for those without children or heirs, designating beneficiaries is key. If you truly have no living parents, siblings, nieces or nephews, your estate may be given to the government. Is there a charitable cause that care about? Most of us have some cause we care about – whether it is animals, veterans, children, religious organizations, or something else, most would agree that they would rather a cause of their choosing receives their hard-earned assets rather than the government. Creating an estate plan can accomplish this. A well-drafted estate plan prevents the state from taking your hard-earned assets.

Think About Your Pets When Estate Planning When You’ve Got No Children or Heirs

Do you have pets? If you’ve got no heirs but have pets, what happens to them if you pass away or become incapacitated? Pets are like family and just as you want to ensure your other affairs are handled, you need to make sure that your fury friends are cared for, too. Estate planning when you’ve got no children or heirs is not just about managing your finances or medical care — it also includes making sure your pets copntinue to receive love and care.

You can appoint a specific caretaker in your estate plan who will take on the responsibility of looking after your pets. Even if you have no idea who that person is, talk with us at Windrose Law Center because we have worked with a number of charities that make sure your pet is cared for and loved if you cannot be there for them.

Setting up a Trust for Non-Relative When You’ve Got No Children or Heirs

Do you want to set up a trust for a non-relative? Maybe you have a friend who is not very good with money but could sure use it if you were to pass away. If you want some control over how your assets are managed and distributed even to non-relatives like friends or caregivers, a trust is a fantastic option. For example, you could set up ongoing support for a friend in need or even designate that your friend can keep living in your house for the rest of their life and upon their death have the house proceeds distributed to someone else or a charity of your choosing. Trusts are a great tool in estate planning when you’ve got no children or heirs because they can help you avoid probate and protect your assets from challenges by estranged relatives.

The Importance of Documenting Medical and Financial Wishes When You’ve Got No Children or Heirs

Document medical and financial wishes. This ensures that decisions are not made against your wishes. A health care power of attorney lets you choose someone you trust to make medical decisions on your behalf if you cannot do so for yourself. If you do not have family to serve in this role, that is OK. You can choose a friend or a professional fiduciary to serve in this role. Your financial power of attorney is a document that enables someone other than a court appointed guardian to handle your financial matters if you become incapacitated. In estate planning without children or heirs, these documents prevent the courts from appointing someone you didn’t choose to manage your affairs.

What are the Main Tools for Estate Planning when You’ve Got No Children or Heirs?

Revocable Living Trust

• Your revocable living trust is an agreement where you as the “Settlor” (also known as “Grantor”) set up the Trust and the “Trustee” manages it for the benefit of the named “Beneficiary.” Since it’s your trust, you wear multiple hats – you’re the Settlor (the one creating the trust), the initial Trustee (the one managing it), and during your lifetime, you’re also the beneficiary. If you were to become incapacitated, then someone you choose would dbe the Trustee and that person would manage the assets in your trust (such as your house and accounts) for your benefit. You would still be the beneficiary as long as you are living. After you died, someone you trust would become the “Trustee” and they would distribute the Trust to whoever you named as Beneficiaries. Those beneficiaries become beneficiaries once you died since during your life, you are the beneficiary. Also, during your life, since you are Settlor (i.e., the person who set up the trust), you can change your trust any time so if a beneficiary makes you mad, you can take them right out of your trust.
• One key benefit of a revocable living trust is that it avoids probate, ensuring your assets are distributed according to your wishes without court involvement. Therefore, any asset that you own, you put in the trust’s name. The trust never dies so when you die, the trust keeps going on and then the assets in the trust (like your house and accounts) get distributed according to whatever rules you put in place. Revocable living trusts avoid probate because your trust never dies.
• When estate planning when you’ve got no children or heirs, you can name friends, distant relatives, or even charitable organizations as your beneficiaries. Remember, you can change your trust at any time if your circumstances or relationships change. If you want to explore how a revocable living trust can benefit your estate plan, especially if you have no children or heirs, we can help.

Financial Power of Attorney

• This is also known as a Durable Power of Attorney. The purpose of this document is to make sure that the person you trust (called your “Agent”) has the power to deal with any assets that are not in your trust in the event that you become incapacitated. Becoming incapacitated means that you are still living but that a doctor has certified that you are unable to give prompt and intelligent consideration to financial matters.
• This document gives your named agent the power to sell your property and spend your assets for your benefit during your life. Your Financial Power of Attorney prevents a court from needing to appoint a conservator for you if you become unable to make your own financial decisions because someone already has the power to do this.
• This document has to be written correctly and it has to be executed properly. Financial institutions and title companies are extremely picky about these documents. Forms you find online cannot be relied upon and are often rejected by financial institutions.  The problem with this is that when you get to the point where your financial power of attorney is being used, that is because you are too sick to do things for yourself financially so it is too late to fix the power of attorney and a court may have to be used to appoint a guardian. When a judge choose a guardian for you, they are doing their best, but they don’t know you and private fiduciaries charge fees to do this work for you. If you were not the one to pick them, you might not like the results.
• When you are estate planning when you’ve got no children or heirs, you can pick a friend or even a private fiduciary of your own, but the difference is that you have chosen them and you are able to put rules in place in advance so that they are just implementing your rules.
• By planning ahead, you avoid the need for a court-appointed conservator, which can be costly and may not reflect your personal preferences. If you need help setting up your financial power of attorney, reach out to us to ensure that your estate is protected, even if you don’t have direct heirs.

Health Care Directives

• Your health care power of attorney names a person you trust to make medical decisions for you, sign consents or releases with hospitals and doctors, and access your medical information. These are so important so that someone has the legal power to get you the medical help you need without having to get a court involved to appoint a guardian for you.
• Your health care power of attorney also includes a living will for end of life decisions about things like whether you would want artificial food and fluid, CPR, a ventilator, and other life sustaining measures if you are in a terminal condition.
• When estate planning when you’ve got no children or heirs, it’s particularly important to document these preferences clearly to ensure your wishes are honored. We can help you create a comprehensive health care power of attorney to give you peace of mind. Contact us for personalized advice.

Estate Planning When You’ve Got No Children or Heirs

You don’t need to have all the answers right away. If you’re feeling uncertain about estate planning when you have no children or heirs, we’re here to help. At Windrose Law Center, we’ve worked with many clients in similar situations. We can help you brainstorm ideas. We have talked to a lot of people in this same situation and there are so many options. Taking action and doing something is the first step.