Q: I am an unmarried adult without any children. I have named my nieces beneficiaries of my retirement plan and bank accounts. I have a mortgage on my home, so I'm not worried about it. Do I even need an estate plan?
A: You may not know it, but you have an estate plan. It's fractured and may not work like you expect it to, but make no mistake, you have an estate plan.
When a person dies without a will, he is said to have died intestate. States don't like it when their residents die without a plan, so they provide one to them. If you die intestate, Indiana supplies a set of transfer death transfer instructions known as the intestate statutes. Intestate statutes apply to all of a decedent's probate assets.
Just think: the powers that be have decided who gets your stuff. What could possibly go wrong there?
If you really want your nieces to get your stuff, put it down in writing and plan properly. Sure you have named them beneficiaries, but is that really the best thing? How old are they? If they are minors and inherit your property, who cares for it until they are adults? Maybe your sister or maybe your ex-brother-in-law who never really liked you in the first place.
Although you have a mortgage on the home, that may not always be the case. If the house is paid off or has equity in excess of the mortgage amount, you may a probate asset that needs to be sold. Who can sell it and who gets the money? Maybe your nieces or maybe your siblings.
Finally, remember that estate planning is more than just getting your stuff to your family. Your estate plan can have important implications during your lifetime. For example, if you become incapacitated, who can conduct business on your behalf? Who can write checks for you or hire a care giver or even sell your home for you if you can't live there anymore? If you execute a power of attorney, you have someone in place.
If you can't make medical decisions because of disability or illness, who can do that for you? If you are single without children, there isn't anyone automatically in line to step up for you. You can address this sort of situation by executing a medical representative appointment.
As a single adult without children, you have needs that married individuals and parents don't have. Not only should you plan, you need to plan.
Opinions are solely the writer's. Christopher W. Yugo is a Crown Point attorney. Address questions to Yugo in care of The Times, 601 W. 45th Ave., Munster, IN, 46321 or to chrisyugolaw@gmail.com. Yugo's information is meant to be general in nature. Specific legal, tax, or insurance questions should be referred to your attorney, accountant or estate-planning specialist.
