Lets Talk Money Online - Creating an estate strategy when you don't have children

If you read articles about creating an estate strategy, you might come away with the idea that the only people in the world who need these strategies are families with children. While caring for children, both financially and physically, is an obviously legitimate concern, not everyone with estate strategy needs has a child.

To understand how to create a total estate strategy, you should work to understand its basic parts. Of course, you should always consult an estate planning attorney as well as a licensed financial professional to learn how financial products might help reduce the impact of estate taxes.

First, review your will or create one if you don't already have a will. This legal document should stipulate not only beneficiaries but also contingent beneficiaries. If you have a spouse, the first part is easy. He or she is typically the primary beneficiary. But for some single people, choosing even a primary beneficiary can be difficult. And for spouses without children, choosing contingent beneficiaries can be problematic. Contingent beneficiaries become the primary beneficiaries should something happen to the latter designee.

Whether you're single or married, it's important to choose both primary and contingent beneficiary designations. Make this decision with care. You might, for instance, choose to leave your estate to nieces and nephews. Or, instead, you may leave it to charities, but be specific and research your beneficiaries well. Lack of specifics could trigger a court fight and result in a division of your estate that wasn't planned.

Beyond a will, you'll want to name primary and contingent beneficiaries for IRAs or company retirement plans. It's important that you complete the beneficiary form and keep the information updated.

Choosing persons to receive your financial power of attorney or become your health care proxy might be more difficult. Make sure that the persons you name are willing to assume the responsibilities and have the ability to fulfill their roles. If you can't find a person financially savvy enough to receive power of attorney, consider a familiar trusted professional. In any case, make sure you are very specific in your documents as to what conditions would warrant someone making your financial or health care decisions. Such specifics might indicate, for example, that physicians that you trust certify you as unable to handle your finances or make your health care decisions, perhaps due to a cognitive disease.

It also will help future decisions if the people who might handle your financial and health care decisions work well together. After all, future health care decisions may be tied together with the financial end of things.

Don't forget to deal with final resting arrangements while you work out your strategies with financial and health care representatives. It may be best to make these decisions for yourself while you can, as most funeral services can be arranged and paid for in advance.

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