Why Estate Planning is Crucial for People Without Children

When people think about estate planning, they often picture parents outlining how their assets will pass to their children or their grandchildren. But a thoughtful estate plan is essential for everyone, especially individuals or married couples that do not have children. Whether you are single, married, partnered, or simply building your life without children, planning ahead is crucial to both protect yourself during your lifetime, and to ensure that your assets are distributed exactly as you intend.

Estate Planning Protects You During Your Lifetime

An estate plan isn’t only about what happens after you pass away. A significant part of proactive estate planning involves protecting yourself during your lifetime. This includes choosing who can make financial and medical decisions on your behalf if you become incapacitated or are unable to do so.

As part of our comprehensive estate plans, we prepare a Durable Power of Attorney, Health Care Proxy, and HIPAA Authorization for all clients. We’ve provided a breakdown of each of these “Living” documents below. These documents are frequently referred to as living documents because they are only active while you are alive. Once you die, these documents “die” with you. From that point forward, only the testamentary documents such as a Will or Trust control.

1. Healthcare Proxy: Appoints someone to make medical decisions on your behalf if you are incapacitated. This allows a trusted family member or friend to step into your shoes and make informed medical decisions if you are unable to do so yourself, based on your explicit instructions.
2. HIPAA Authorization for Release: Under the Health Insurance Portability and Accountability Act (“HIPAA”) passed by Congress, valid under 45 C.F.R. Chapter 164, you can name specific individuals that can legally obtain access to your medical records and speak with your doctors in an effort to make informed medical decisions should you be unable to do so yourself.
3. Durable Power of Attorney: Grants a trusted individual (known as the Attorney-in-fact) the authority to manage your financial and legal affairs if you become incapacitated during your lifetime. The Durable Power of Attorney (DPOA) document will outline specific powers the Attorney-in-fact is authorized to carry out. These powers typically include things like paying bills, paying the mortgage/rent, opening or closing bank accounts, making investment decisions, buying or selling property, etc.

Without having these documents in place, your loved ones, friends, or those closest to you may face pushback from banks or hospitals, or unnecessary delays as a result of not having legal authority to act on your behalf if something catastrophic happens. This can create stress or unnecessary disputes that could otherwise have been completely avoidable.

Even without children, it is important to name:

• Someone you trust to make medical decisions;
• Individuals who you authorize to receive all of your historical medical records;
• A responsible individual to manage finances and legal matters;
• An agent who is authorized to pay your bills, mortgage/rent, etc. if you are unable to do so yourself;
• Specific instructions for your personal care and treatment

These documents allow you to stay in control of your care, no matter the circumstances.

A Will or Trust Ensures Your Assets Go Where You Want Them To

If you die without a Will, your assets would be distributed in accordance with Massachusetts Intestacy Laws as determined by Massachusetts Uniform Probate Code (G. L. c. 190B). For a full breakdown of Massachusetts Intestacy Laws and what happens if you die without a Will, please read our full legal blog here. For individuals without children, many clients are surprised to learn that if you were to pass away without a surviving spouse, your estate would pass to your surviving parents, then siblings, and then to any surviving blood relatives from there. When you die intestate (without a Will), a Massachusetts statute determines who will inherit your assets, and your own personal relationships, friendships, or wishes will be completely irrelevant.

Creating a Last Will and Testament and/or Revocable Living Trust allows you to direct your assets to the people and causes that matter to you most. This is especially important if you no longer have relationships with your parents or siblings, who would otherwise inherit from you. Instead, your estate plan can outline exactly who you want to receive your assets, and in what percentages, such as:

• A spouse or long-term partner;
• Nieces, nephews, or godchildren;
• Friends who feel like family;
• Charities or organizations you support.

Your estate plan ensures that you legacy and the assets that you’ve worked so hard to obtain get distributed to people or organization of your choosing, rather than leaving things up to the Commonwealth.

Unmarried and Cohabiting Couples Face Unique Risks

If you share your life with a partner but are not legally married, estate planning is especially important. Massachusetts does not recognize what is known as “common law marriage.” In Massachusetts, you must have a formal ceremony and obtain a marriage certificate to be considered legally married. Some states that recognize common law marriage allow partners to be viewed as legally married, even in the absence of a ceremony or marriage certificate, if they meet certain criteria such as:

• Cohabitation;
• Holding themselves out to the public as a married couple;
• They meet other statutory-defined criteria that is state specific (such as having the same last name or filing taxes jointly to name a few).

As a result, in Massachusetts if you are not legally married and do not have a Will or Trust in place:

• Your partner may not inherit anything;
• They may not be permitted to make medical decisions for you;
• They could lose the ability to remain in your shared residence.

A customized estate plan can provide clarity, protection, and stability for both partners.

Proactive Planning Helps Reduce Costs and Administrative Burdens

While a Will alone will ensure that your named beneficiaries inherit your assets, your WIll still passes through the Massachusetts Probate process. For a detailed overview of the Massachusetts Probate process, what it entails, and how to potentially avoid it, read our full legal blog here. Probate can be a costly and sometimes lengthy process, and can add unnecessary expenses and delays for your loved ones.

Strategic planning can help streamline the process following your death, reduce overall estate expenses, court costs, legal fees, and reduce or possibly eliminate potential estate taxes. A Revocable Trust is a great option for many people in Massachusetts that don’t have children. For a full breakdown of Revocable Trusts as well as other types of trusts and how they can benefit you, click here to read our full blog. Some of the key advantages to establishing a Revocable Trust are:

1. Probate Avoidance: By placing your assets in a Trust, they bypass the probate process entirely, which will streamline the transfer of assets and minimize costs substantially.
2. Maintain Privacy: When a Will gets filed with the probate court, it becomes a public record, which means anyone can view its contents. A Trust guarantees your privacy and ensures that the distributions of your estate, your named beneficiaries, and all other components of your Trust stay out of the public eye.
3. Control Distributions: A Trust allows you to specify the ages, milestones, or conditions under which beneficiaries can receive distributions under the terms of the Trust. This ensures that any young or financially inexperienced beneficiaries don’t receive a large sum of money prematurely.
4. Flexibility & Control: As the name implies, a Revocable Trust allows you, the Settlor, to retain full control over the Trust assets during your lifetime. You can revoke or amend the Trust at any time before your death. This provides you with the utmost flexibility to make changes to your plan as circumstances evolve and relationships change throughout your lifetime.

You Can Create a Legacy That Reflects Your Values

Estate planning gives you the opportunity to make a meaningful impact, even without children. Many individuals choose to support the causes and communities that are important to them by:

• Leaving gifts to charitable organizations;
• Supporting educational programs or scholarship funds;
• Leaving funds to nieces, nephews, or children of their friends with specific language that the funds only be used for the beneficiary’s education, or be immediately invested into an educational fund, such as a 529 account;
• Passing along family heirlooms, antiques, or other property responsibly;
• Helping younger relatives or close friends.

Your estate plan allows you to define the legacy you want to leave.

Contact Us Today to Get Started

Estate planning is for everyone, regardless of whether you have children or not. For many individuals that don’t have children, estate planning is even more critical to ensure their wishes are clear, and their beneficiaries are not defined by the Massachusetts Intestacy statute.

At Lane, Lane & Kelly, we have been guiding families in Massachusetts with comprehensive estate planning strategies since 1938. Whether you need to create your own plan or update an existing one, our experienced team is here to provide the personalized attention and support that you deserve. Contact us today to get started!

This blog is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By reading this blog you understand that there is no attorney client relationship between you and Lane, Lane & Kelly, LLP.