It’s widely believed that only married people and those with children need to worry about estate planning. However, all California residents, even those who are single, should take steps to plan for the future. These are tips that singles can take in this regard.
Create your will
A last will and testament is one of the basic components of estate planning. It lets you name an executor who handles your estate after you pass away. You can also name beneficiaries who will inherit your assets and property and state your final wishes and what you want to happen to your pets if you have any.
Plan for potential incapacity
Powers of attorney protect you in the event that you become incapacitated and can’t make your own decisions or handle your financial matters. A financial power of attorney lets you choose an agent to pay your bills, settle debts and oversee all other money situations. When you have a healthcare power of attorney, you can select an agent to handle these types of decision. This person can ensure that your wishes are met for your medical care when you’re unable to voice them.
Create a living trust
A living trust allows you to hold assets and property that you can still use throughout your lifetime. However, you can name a beneficiary or beneficiaries you wish to inherit those items once you’re gone. A trustee handles the trust after you pass away to ensure that this happens.
Donate to charity
Some singles choose to donate assets to charity. You can name a specific charity as a beneficiary in your will or create a charitable trust. The latter allows your assets to go to that charity over a long-term basis. You can also reap tax benefits from a charitable trust.