According to a United States Census Bureau press release on September 17, 2023, 46.4% of U.S. adults are unmarried. This represents approximately a 20% decrease in the married population since the 70s. While this includes those who have been divorced or widowed, the largest driver of this change is a significant decrease in the number of both men and women who are getting married in the first place.[1] Additionally, as of 2021, nearly one in six adults over the age of 55 were childless and about 22.1 million adults over 55 were living alone.[2]
These changes in our country’s demographic pose new challenges to consider as our population ages. If you are single, childless, or live alone, it is normal to have some anxiety about what will happen after you pass away. Who will inherit your assets? Who will ensure that your wishes are carried out after you’re gone? How will they know what investments you have and where important documents are kept? How will they know when you pass away? While these questions can be quite unsettling, there are things you can do to alleviate the stress of your estate planning. There are also many truly gratifying ways you can leave a legacy, even without descendants.
The market for corporate fiduciaries is increasing with the rise of complicated family dynamics and single, childless adults. While there are many reasons to name a corporate entity as your Personal Representative, Successor Trustee, or even Financial Power of Attorney, being single and childless might be the best one. If we are blessed with a long life, there is a chance we may outlive our loved ones and friends. Many of our clients have also outlived their trusted professionals, such as attorneys or financial advisors. Naming a corporate fiduciary is a great alternative solution. You can have peace of mind knowing that there is an entire team of professionals behind you that will ensure your wishes are carried out.
“How will you know when I’m dead?” is a question we have been getting with increasing regularity among clients who have named us as Personal Representative of their estate or Successor Trustee of their trust. In the past, we have relied on a client’s loved ones to let us know. We read obituaries, but the information is somewhat delayed and still dependent on someone else knowing first. Though there is no easy answer to make sure your Successor Trustee/Personal Representative is notified immediately, we have come up with a few suggestions to remedy this situation. First and foremost, we tell clients to keep our business card in their wallet, purse, by the phone, or on their refrigerator. We also stay in touch with future clients to stay updated on their health, plans, and family dynamics. Checking in with your Successor Trustee/Personal Representative regularly is an important way to establish a pattern of communication that someone would notice a change in if something were to happen to you. This communication should increase in frequency in light of advanced age or declining health.
If you live alone, perhaps the best thing you can do for your Personal Representative or Successor Trustee is to have something like a “Death Book.” This can be as formal or informal as you want it to be. It is simply a notebook or journal where you can keep all your personal information in one place. It provides a place to write down the location of important documents, assets, social media accounts, and
[1] https://www.census.gov/newsroom/stories/unmarried-single-americans-week.html#:~:text=From%20nationalsinglesday.us%2C%20%E2%80%9CDid,those%20who%20have%20never%20married.
[2] https://www.census.gov/newsroom/press-releases/2021/childless-older-adult-population.html
important contacts. It is also a great place to document your funeral arrangements since most attorneys advise against including that in your will. We love this Peace of Mind Planner by Peter Pauper Press Inc.
Amid the challenges singles face in planning their estate, there are also some incredible opportunities to leave a lasting legacy. Paul speaks in 1 Corinthians about the freedom of singleness and the opportunity to be solely devoted to Kingdom work. “I would like you to be free from concern. An unmarried man is concerned about the Lord’s affairs–how he can please the Lord. But a married man is concerned about the affairs of this world–how he can please his wife–and his interests are divided… I am saying this for your own good, not to restrict you, but that you may live in a right way in undivided devotion to the Lord.” Adults with children or spouses will likely feel an obligation and desire to make sure their family is cared for after they pass. Single, childless adults can use what they have accumulated over a lifetime to further the Kingdom or other things they believe in and value.
There are several ways to use your estate to benefit your community or a cause. You can leave gifts to charity outright without any negative estate tax consequences. You can set up scholarship funds for students going into a career you find meaningful. If you have multi-generational wealth, or don’t know exactly which charities you’d like to fund, you can leave your estate to a Donor Advised Fund (DAF). A DAF is a third-party entity that holds funds for philanthropic intent and makes gifts to charitable organizations over time. DAFs are highly customizable to your values and priorities. DAFs will typically have a set of criteria that charitable organizations must meet to receive funds. For example, there are faith-based DAFs that only make donations to Christian charities. The managers of a DAF are usually well-versed in philanthropy and skilled at vetting organizations to make sure resources are truly being used for the designated purpose. This is a good option for someone who has a particular cause they want to support but do not have a specific organization in mind. Your corporate fiduciary is a great place to start and can help you get connected with a DAF that is committed to your values.
As a corporate fiduciary, our job is to meet people where they are without judgment. Our focus is to recognize the reality of the situation in which our clients find themselves, plan for it, and serve within that context. Estate planning is no less important for those without spouses and children. On the contrary, it can be just as meaningful for single adults to consider the impact you will leave on the world when your time on Earth is done.