Flying Solo: Why Estate Planning Still Matters and What to Do Next
Estate planning for single people is very important in order to ensure that your wishes are carried out during your life and after your death. As a single person, you may find yourself wondering who will step in to make important decisions for you if you become unable to do so or who will receive your money and property after your death. Although parents, siblings, or other loved ones may be the first people who come to mind, they may not always be the best choice, depending on the status of your relationships, family dynamics, location, or someone’s ability to serve in a role. If such worries are preventing you from completing your estate plan, we are here to help you.
An estate plan allows you to make those decisions for yourself rather than leaving them up to state law or a court. It allows you to name the people you trust to handle financial matters, make healthcare decisions, and carry out your wishes after your death. It can also help make things easier for the people you care about by providing guidance during what is often an emotionally stressful time.
Taking the time now to put an estate plan in place can create clarity, reduce uncertainty, and give you greater peace of mind about the future. It is a meaningful way to protect yourself, preserve your wishes, and ensure that the right people are in place if they are ever needed.
Estate Planning for Single People: Choosing the Right Decision-Makers
There may come a time when you need someone to handle financial matters or make medical decisions on your behalf. If you have not formally nominated someone in advance through estate planning documents and you become incapacitated (unable to manage your affairs), a court may need to step in and appoint a decision-maker based on state law. Planning ahead lets you choose someone you trust to manage your affairs instead of leaving that decision to a judge. The following are two key roles to consider:
- Agent under a financial power of attorney. This person handles your financial matters, such as paying bills, managing accounts, and completing transactions. The power of attorney document defines the specific authority granted to the agent and also specifies when an agent can act. It is important to choose someone responsible, organized, and able to dedicate time to the role. If you have no trusted family member or friend who is suitable, you may opt to work with a qualified professional.
- Agent under a medical power of attorney. If you are unable to communicate or make medical decisions, this person will step in on your behalf. Naming a healthcare agent, instead of relying on a court-appointed individual, allows you to retain control over who will make those decisions. Choose someone who understands your wishes and who is willing and able to advocate for them. If a family member is not the right fit, a close friend may be a good option. Keep in mind that some states restrict who can serve in this role, such as healthcare providers.
Choosing the Right Recipients
If you have no estate plan in place, state law will determine who receives your money and property at the end of your life. In general, assets are distributed in a set order defined by state intestacy statutes—typically to a surviving spouse first, then to children or grandchildren, followed by parents, siblings, and other relatives, depending on who is living at the time.
This default approach may not accurately reflect your wishes, especially if you are single and childless, or if you want to leave your assets to someone other than your family members, such as specific individuals or charities.
It is also important to review beneficiary designations on accounts, life insurance policies, and retirement plans. Such designations usually override your will because they pass automatically and outside of probate—the court process for settling an estate—meaning they will control who receives those assets.
- If no beneficiary is named, the asset may be paid to your estate, which can require probate, a process that can add time, cost, and complexity.
- In some cases, the account agreement will dictate a default order of recipients, which may not align with your intentions.
- For retirement accounts, missing or outdated beneficiaries can also lead to unintended tax consequences.
Taking the time to name and periodically update your beneficiaries helps ensure that your assets are distributed according to your wishes and avoids unnecessary complications for your loved ones.
Tax Planning as a Single Individual
The tax rules around estate planning differ for single individuals and married couples. Married couples can transfer assets to each other at death without incurring federal estate tax, and they may also be able to use each other’s unused estate tax exemption.
If you are single, you have your own federal estate tax exemption to work with. As of 2026, that exemption is $15 million, meaning estates above that amount may be subject to federal estate tax.
You can also make lifetime gifts to reduce the size of your estate. In 2026, you can give up to $19,000 per person each year without triggering gift tax or the need to file a gift tax return. While married individuals can combine their annual exclusions to give larger amounts, single individuals can still use gifting as an effective planning strategy over time.
Individuals with significant assets may need to start tax planning earlier and consider more-advanced strategies. Working with experienced professionals can help ensure you make the most of available options while staying aligned with your overall estate planning goals.
McDonald Law Firm is Here to Help You
Establishing an estate plan allows you to take control of important decisions, both during your lifetime and after you are gone. It ensures that your wishes are clearly documented and that the people and causes you care about are provided for in the way you want.
Every situation is different; your plan should reflect your unique relationships, priorities, and goals. For this reason, estate planning for single people is just as important as it is for married people. Working with McDonald Law Firm can help ensure you establish the right documents and implement the right strategies with confidence. If you are ready to get started or simply have questions about your options, our experience attorneys are here to guide you through the process.
Contact McDonald Law Firm, an experienced Howard County, Montgomery County and District of Columbia estate planning, special-needs planning and Medicaid planning firm at (443) 741-1088; (301) 941-7809, (410) 337-8900 or (202) 640-2133; or use the following link: https://www.mcdonaldesq.com/#contactWrapper to schedule a consultation with one of our knowledgeable attorneys who can assist you in putting the right plan in order.
DISCLAIMER: THE INFORMATION POSTED ON THIS BLOG IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND IS NOT INTENDED TO CONVEY LEGAL, INSURANCE OR TAX ADVICE.
