Current Trends - Estate Planning Without Kids - Episode 215
- Jenny Rozelle, Host of Legal Tea
- Sep 23
- 7 min read
Hey there, Legal Tea Listeners – This is your host, Jenny Rozelle. Welcome back for another episode, which is a “current trends” topic where we talk about things going on currently that are relevant and pertinent to my estate and elder law world, and/or maybe things I’ve seen on the news or stumbled across on social media. Well today’s episode is going to be about the changing landscape of American families, with a growing number of adults choosing to remain childless or finding themselves without children due to circumstances beyond their control. I wanted to share some statistics because they reveal the scope of this trend. Among Americans aged 55 and older, 16.5% are childless, representing 15.2 million people. That is according to a US Census Bureau report. Now, what I’m really emphasizing on this episode is this stat … the trend is accelerating among younger generations, with 57% of adults under 50 who say they are unlikely to have children. That is according to a Pew Research Center survey.
Now, we are talking about this topic today because this demographic change creates unique estate planning challenges and opportunities that require specialized strategies and careful consideration. Despite the importance of estate planning for everyone, including childless individuals, participation rates (on doing an estate plan) remain alarmingly low. And you may be thinking, “Well, they don’t have a dire need to do an estate plan compared to families who have kids – and wanting and needing to protect the kids.” That is actually not totally true.
One reason estate planning is still extremely important for childless adults is because their assets likely will not automatically pass to super-obvious heirs (like kids!) under state intestacy laws. Rather, when someone dies without a will and has no children, state laws may direct assets to surviving spouses, and/or maybe parents, maybe siblings, and eventually to more distant relatives (if necessary). Without proper planning, your life's work could end up in the hands of either estranged family members (like an estranged father), a family member you don’t have a close relationship with (like a sibling), or even distant relatives you barely know, or in extreme cases, maybe, are you ready for it … to the state.
Another thing to think about and continue on this topic (as it relates to estate planning), is that the absence of children also often leaves childless individuals lacking natural advocates who would typically step in during emergencies or end-of-life situations. This makes advance planning for incapacity and healthcare decisions even more crucial than it is for parents, who can often rely on adult children to navigate these challenging situations.
So, how do these folks go about doing and building a solid estate plan? Well, let’s talk about that – Well, let’s start with that. Talking about what happens if you become incapacitated. Like I said, a lot of families with kiddos have them to lean on to navigate this stage of life. So, incapacity planning takes on heightened importance for childless individuals since they do not have children to naturally step in during emergencies.
First, a durable power of attorney should appoint someone you trust completely to make financial decisions if you become incapacitated. This person will handle banking and investments, pay bills, file taxes, make real estate decisions, and manage your financial affairs. Choose this agent carefully, as they will have broad authority over your financial life. And second, healthcare directives become equally critical and should include several key documents. A healthcare power of attorney or healthcare representative document appoints a trusted decision-maker to handle medical decisions when you cannot. Another couple of documents or things to mention are Living Will and Advance Directives, which outline your preferences for end-of-life care, including decisions about life support, artificial nutrition, and other medical interventions.
Beyond incapacity planning, is planning for what happens at death. I know, it’s a lovely thought, isn’t it? Well, at minimum, a Will (a Last Will and Testament) forms the absolute foundation of any estate plan – the Will should clearly specify who receives your assets. You can consider extended family members such as nieces, nephews, siblings, or parents who might benefit from your assets, or you know… some childless adults choose to benefit close friends who have functioned as chosen family throughout their lives, or organizations and causes that reflect their values and passions. Additionally, your Will should also identify who will serve as your executor (the person in charge). Choose someone who is trustworthy, organized, and capable of handling financial and legal matters.
Beyond those more fundamental documents, childless adults should carefully consider whether more planning tools might better serve their unique circumstances. For example, various types of trusts can provide more benefits, tax benefits, and protection that Wills cannot offer. A commonly-used Trust is a revocable living trust, which helps manage assets during incapacity and provide privacy by avoiding probate. Irrevocable trusts might offer tax advantages and asset protection benefits, especially for individuals with substantial estates who want to minimize estate taxes or protect assets from potential creditors. The decision on whether to incorporate trusts into your estate plan depends on your specific circumstances and planning objectives, making working with awesome professionals, legal, financial, and tax, essential.
On a higher level, talking about estate planning maybe more generally speaking, childless individuals and couples have, what I am going to call, unique opportunities to impact lives meaningfully through their estate planning choices. Extended family members often represent the typical “natural” beneficiaries, particularly nieces and nephews who may need education funding, siblings who could benefit from additional retirement security, or aging parents who may require care assistance. These family connections often provide the emotional satisfaction of keeping assets within the family while supporting people you care about.
But I am seeing more and more childless individuals and couples choose to incorporate close friends into their estate plan. If they are listing them in their estate plan, they typically have developed deep, lasting relationships with friends who have provided support, companionship, and care throughout their lives. These relationships often mirror family bonds and in some situations, may be more meaningful than distant blood relationships.
Another thing I am seeing more nowadays is childless individuals and couples providing for charitable and nonprofit organizations in their estate plans. They look at is as an opportunity to create a lasting legacy. Without traditional heirs, they have the freedom to support causes that reflect their values and passions. This might include educational institutions that shaped their development, medical research organizations addressing health issues that have affected you or your loved ones, environmental causes you care about, or local community organizations that have enriched your life. In fact, incorporating charitable giving into estate planning, whether it’s through various types of trusts or even things called donor-advised funds, also typically offers tax benefits.
A quick note on donor-advised funds and private foundations ... I’m hearing much more about them nowadays than ever before, but for the sake of this episode, they tend to be attractive for childless individuals and couples who want to establish charitable legacies without the complexity and costs of private foundations. But for individuals and couples who have a lot of assets, private foundations offer maximum control and the ability to create perpetual charitable legacies. While they require resources to justify the setup and ongoing administrative costs, they allow you to establish a lasting institution that can support chosen causes essentially indefinitely. You can involve trusted friends or family members as board members, creating opportunities for meaningful engagement with your philanthropic goals.
So, where does a childless individual or couple start with all of this? I’d start with surrounding yourself with an awesome professional team – involving an estate attorney, a tax professional, and a financial planner. Let’s chat about each – okay, so look for an experienced estate planning attorney who serves as the primary legal strategist and document drafter. Also look for a qualified financial advisor or planner, who plays the crucial role in ensuring your estate plan aligns with your overall financial strategy. Your advisor should understand how the absence of children affects retirement planning, long-term care considerations, and legacy goals. Finally, tax implications may become more complex for childless individuals if charitable giving is involved. Choose a CPA with specific estate and trust experience, knowledge of charitable tax strategies, and experience preparing gift and estate tax returns.
Another professional I should “get out there” before we wrap up … is considering a professional or a corporate trustee to serve in roles in Executor and Trustee. Childless individuals and couples may find it challenging coming up with individuals to fill those roles. I am not necessarily talking about banks and financial institutions who will serve for a pretty penny – but professionals, actually like attorneys, who will serve typically not as expensive as a bank or institution. Though, for larger or more complex estates, banks and institutions can provide professional asset management and administration when suitable individual trustees are not available.
I could keep going about this topic – in fact, I AM this topic. I am married, but my husband and I do not have any children. Someone actually requested this episode topic, so when he did, I was like, “How did I not think about it?” I am that! Anyway, as we wrap up, estate planning for childless individuals and couples require thoughtful consideration of unique circumstances, relationships, and goals that differ fundamentally from traditional family planning. And the absence of children does not diminish the importance of estate planning but rather heightens it, as you must be intentional about every aspect of your legacy without relying on natural heirs, like kiddos, to carry out your wishes.
Alrighty, let’s wrap this episode up, shall we? Next week, we’re back to the “celebrity estate planning” type of episode – so, for this episode, I’m thinking about doing an update episode on Jeffrey Epstein’s estate. I did an episode a while back, but there has been more stuff / more headlines on his estate that may warrant an updat4e episode. So yeah, next week may be on him, we’ll see, so tune in next week, Legal Tea Listeners. Talk to you then!
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