Most people are aware that if you are married and/or have children trust and estate planning in Cincinnati, Ohio is highly recommended but how important is it when you’re single? You already know I’ll say “Very important” but let me give you a few facts about why I say that.
If you’re single (or divorced with no children) you might think trust and estate planning is something you can skip; especially if you don’t have much in the way of assets. And of course, you can. There is no law here in Cincinnati, Ohio that says you MUST have a will or trust. It is entirely up to you. However, if you choose not to plan ahead let me share with you what could potentially happen.
Situation #1 – You don’t have a trust or estate plan … what will happen if you are in a car accident and comatose for days, even weeks? First, you clearly can’t make medical decisions for yourself – such as what levels of life support you’d want. Had you taken the initiative to create a trust and estate plan, including medical directives, that kind of situation would have been planned for and handled through proper legal documents that provide clear direction to the medical professionals. (Did you know medical privacy laws can be so strict that without these legal documents not even your parents or siblings could be permitted to make decisions on your behalf?)
Second, while you are comatose you obviously cannot manage your financial affairs such as paying your rent, car payment, or insurance premiums –right? If you haven’t already appointed a financial power of attorney (POA) in advance (and prepared that person in advance with info about your finances) what will happen? Will you default on your car loan? Perhaps your landlord could begin the eviction process for non-payment? All of this could have been avoided had you developed a trust and estate plan in advance.
Situation #2 – You don’t have a trust or estate plan … what will happen if you die unexpectedly and you have surviving relatives? No one likes to think about it but none of us knows what our future holds. If you haven’t planned for it by having a will, read on for what happens next.
First, not having a will means you died “intestate” and the state steps in to handle your financial affairs. Then, because you didn’t have a trust virtually everything you owned will go through the probate court process – which by the way, is public knowledge. This means your relatives, parents, or siblings, will have to spend time and effort working with the court … probably having to hire an attorney to help them. And sometimes the process can take months or longer. So in addition to the emotional strain of grief, they have to navigate the legal system. Is that what you want for them? If you have only one surviving relative it can be pretty simple but what if your parents and siblings survive you? Do you really want to create a possibly contentious situation over who gets what? Don’t think it won’t happen … we all know that it can.
Situation #3 – You don’t have a trust or estate plan … what will happen if you unexpectedly die and you don’t have any surviving relatives? The difference here is you have no heirs. So what happens? The harsh reality is … here in Cincinnati, the state of Ohio receives ALL your assets. Maybe, had you planned ahead for it, you would have wanted your best friend to have your car, a pet rescue to receive everything in your savings account, or the proceeds of the sale of your belongings to go to another favorite charity. But none of that will happen if you don’t legally plan for it. Telling your friends what you’d want to happen is not enough. It has to be legally documented.
It is said more than 50% of Americans don’t have trusts or estate plans. I’d guess that percentage is much higher if it included only single or divorced individuals. I hope I’ve provided some compelling reasons to have a trust and estate plan, here in Cincinnati, even if you’re single. These legal documents can benefit you while you are still alive and benefit friends, pets, charities, etc. when you die.
Please visit my website https://davidlefton.com/estate-planning-for-all-stages/planning-for-divorced-or-single/ or call me at 513-399-7526 to schedule a meeting to discuss your estate plan.