Estate Planning Without Children: What to Know

Estate planning ensures your assets go to the people or causes that matter most after you pass. But for adults without children, the process can feel far less straightforward. Without obvious heirs, it may be harder to know who should inherit your estate or even whether you need a plan in the first place.

But even without children, building an estate is just as important. It allows you to structure a meaningful legacy, name key decision makers, and prevent your assets from being distributed according to default state laws. In this article, we’ll outline what to know about estate planning if you don’t have children, including selecting beneficiaries and important documents to keep in mind.

Why Estate Planning Matters Without Kids

Without children, estate planning might seem like an afterthought, especially if you have fewer assets to leave behind. But it’s still a crucial part of protecting both your finances and your legacy.

Putting together a comprehensive plan ensures that, when you pass, your loved ones honor your wishes and they aren’t left guessing or sorting through legal complications. For example, if you want a family member to have something you own, such as a property or vehicle, you’re able to achieve that with a will.

Perhaps most importantly, estate planning allows you to name trusted decision-makers in the event you become incapacitated. Jay Zigmont, PhD, CFP^®, founder of Childfree Trust^®, explains that your “POA and/or trustee can act on your behalf when you are disabled”; however, without appointing someone, “healthcare organizations or the state will have to make decisions for you.”

Who Will Inherit? Choosing Beneficiaries Without a Default Heir

Without a child or spouse, you may not have an obvious heir to name in your estate plan. Still, no matter the size of your estate, assigning beneficiaries is a step that deserves careful thought. If you don’t identify specific individuals or organizations, your state’s inheritance laws will decide for you, and the outcome may not align with your wishes.

So, where do you turn if no clear heirs come to mind? According to Joseph Fresard, attorney at Simasko Law, many people start by considering “close friends” or “those they can count on more as they get older.” These are often trusted companions you’ve built long-standing relationships with, and those you’d feel good about inheriting your assets or property.

Aside from individuals, you can also name charitable organizations as beneficiaries. This allows you to support causes that reflect your values and leave a lasting impact. That said, Fresard recommends doing your homework. “It is a good idea to research these charities and make sure your gift will be effective” before finalizing your decision, he says.

You’re not limited to a single beneficiary, either. You can divide your estate among multiple individuals or charities and assign specific amounts or percentages to each. It’s also wise to name contingent beneficiaries in case someone you name passes before you. Fresard advises paying close attention to the age and health of individual heirs, especially if they’re significantly older, since it’s possible they “may not survive you.”

Legal Documents to Have in Place

Just like parents, child-free adults need several key documents to form a complete estate plan. Beyond a will, this includes naming a financial power of attorney, setting up an advance healthcare directive, and possibly establishing a trust. Together, these documents help ensure your wishes are clear and legally enforceable during and after your lifetime.

Jennifer Andrews, senior vice president of global marketing at The Estate Registry, explains that if you don’t have any children, “there are three main documents you will want to have prepared.” According to Andrews, these are “a will, a healthcare directive, and a financial power of attorney.” Each one is essential to naming beneficiaries and protecting yourself in the event you become incapacitated.

Here’s a short breakdown of how each document functions:

• A will dictates who receives your property and assets after you pass. It also specifies an executor to oversee your estate.
• An advance healthcare directive specifies your medical wishes and appoints an individual to make healthcare decisions if you can’t speak for yourself.
• Financial power of attorney (POA) gives a person the legal authority to manage your finances if you’re unable to do so.

The documents above become even more important when you don’t have children or a spouse. Without them, the state has no clear guidance on your wishes, which means your assets may go to distant relatives or, in some cases, to the state itself. If you’re incapacitated and haven’t named a POA or healthcare proxy, a court may appoint someone who doesn’t know you well or understand your values to make life-altering decisions for you.

“Whether it’s a close friend or your favorite cousin, you will want to ensure it is someone who truly has your best interests at heart and has no reason not to execute your wishes as outlined,” says Andrews. She adds that it’s vital to  “let this person know about your decision to designate them as the executor of your estate” to make it “easier for everyone in the long run.”

Challenges to Consider for Estate Planning Without Children

Even with a clear estate plan, being child-free can bring unique challenges. You’ll need to think more deliberately about who you trust and how to keep your plan up to date. Below is an overview of common obstacles you may face and how to overcome them as you plan your estate without children:

Lack of People to Name

Without children or any close family, you might have no idea who to appoint as an executor, beneficiary, or power of attorney. And, even if you do have someone to name, they may be your “own age and older,” says Patricia De Fonte, J.D., LLM, founder and estate planning attorney at De Fonte Law PC. To get around this, private fiduciaries may be a necessity, but can be “very expensive,” says De Fonte.

Choosing the Wrong Individuals

It can be difficult to choose someone in general, but naming the right people you can trust to carry out your wishes may be even more of a challenge. Managing an estate is a difficult and emotionally taxing process that may not suit everyone. It’s important to pay close attention to the financial and emotional acumen of potential candidates for key roles like executor or power of attorney.

Not Informing Beneficiaries or Key Decision-Makers

Naming someone in your estate plan is an important step; however, it’s also critical to inform them of their role in advance. This way, they can prepare themselves for what’s to come. If they’re caught off guard or don’t understand your wishes after your passing, it will be much more difficult for them.

Letting Documents Go Out of Date

According to Allison Harrison, principal attorney and founder of ALH Law Group, failing to regularly update your plan is a common oversight among child-free adults. “Not updating their plans regularly or ever,” she says, is one of the biggest mistakes.

Harrison says, “With kids, it’s somewhat natural to update your plan when you bring a new child into the world or one turns 18. For people without kids, there are not the same natural reminders to update the plan. Then, we find a number of the beneficiaries have predeceased the testator.”

Whether you move, lose touch with someone, or change your mind about your beneficiaries, it’s essential to revisit your documents every few years. An outdated will or power of attorney, for instance, can lead to confusion or legal disputes after your passing or incapacitation.

Bottom Line

Even if you don’t have children, estate planning is essential. Without an obvious beneficiary or executor, it becomes even more important to think carefully about your wishes, how you want them carried out, and by whom.

That being said, building an effective estate plan without children works the same way as it would otherwise. Beginning your plan with key documents like a will, power of attorney, or advance healthcare directive can help you conceptualize whom to name and what your wishes may be.

If you’re unsure where to start, consider speaking with a financial advisor, estate planning professional, or attorney. They can help you create a plan that fits your life, draft the right documents, and even serve as a fiduciary if you are unable to find a trusted individual.