Do You Think You Don’t Need Estate Planning Just Because You Are Single?

When estate planning is talked about, most people visualize the old-style American family – either the Cleavers or Ozzie and Harriet and the boys. You may think as a single person that you don’t need estate planning. But you’d be wrong.

There are many of you out there who never married, got divorced, or are widowed. All of you need estate planning documents. In some respects, you need them more than married people do. After all, if you have a sudden heart attack, the doctors and nurses would ask your spouse about what your wishes would be, even without a health care proxy. And without a will, your spouse would inherit at least a portion of your estate.

But, if you are not married, the laws of New Jersey intestacy (dying without a will) dictate who will inherit your estate. This law may create heirs that you never intended. If you have no children, siblings, nieces, nephews, and their children can inherit your estate. What if you wanted everything to go to your favorite charity? Or to your significant other of five years whom you have no intention of marrying? Without a will, the charity never gets a dollar of donation and your significant other receives nothing. Also, there are fewer ways to save on New Jersey estate taxes when you are single so you want to consult with an estate planning lawyer to ensure that you become informed about every technique that is out there to save on taxes.

You need a durable power of attorney to appoint someone that you trust to handle your financial affairs if you cannot do so for any reason. Many times, married couples will have joint bank accounts so one spouse can handle the finances even if the other one is out of town or in the hospital. Do you have any joint accounts? As a single person, probably not. And I’m not recommending that you set up a joint account for emergencies. I suggest that you sign a durable power of attorney, appointing someone that you trust to handle your money. This will allow an adult child, trusted relative, or a cherished friend to pay your bills, ensure that you have enough cash in your accounts to make those payments, and to maybe handle any job benefits that you may be entitled to because you are incapacitated. But, if you don’t appoint someone yourself through a durable power of attorney, the person who cares about you must go into court and spend the time and money to get appointed as your guardian.

Just as you need someone to handle your financial affairs, you need to appoint someone to handle your medical issues. You want to discuss your medical choices with a person that you trust and voice how you would want different scenarios handled on your behalf. For example, if you were in an irreversible coma, would you want a breathing tube, nourishment, or heroic measures if your heart stopped. Or would you want the doctors to do everything in their power to keep you alive since you believe that God will take you when you are supposed to go? By appointing someone to act for you as your health care proxy, and letting them know what you would want, you will get the medical treatment that you wanted and don’t get the treatment that you would have refused if you could talk.

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