Estate planning is essential for everyone, regardless of whether you have family members or no family. Without an estate plan, the state follows intestate succession to determine who receives your assets. Arizona's intestate laws state that if there are no surviving family members, the estate goes to the State of Arizona.
A growing number of individuals over 55 do not have children. However, intentional estate planning does not need to involve family members. There are other options when you don't have family to leave your assets to after your death. In this blog, our Arizona estate planning attorney discusses options for asset beneficiaries when you do not have family members.
Leave a Legacy That Reflects Your Values
Charitable giving is one option for an estate plan when you don't have family. Leaving assets to charity can have a significant impact on the community. You can also take advantage of tax deductions.
Several options exist for charitable giving through an estate, including but not limited to:
Donor-advised funds (DAFs) allow you to make contributions to a charitable investment account for tax-free growth.
Charitable remainder trusts enable you to transfer assets to an irrevocable trust, allowing you to benefit from the income during your lifetime. After your death, the assets are transferred to your chosen charitable organizations.
Direct gifts to 501(c)(3) organizations made during your lifetime or after your death.
Charitable estate planning may be used in conjunction with other options for estate planning without family. For example, you may consider creating trusts that benefit specific individuals in addition to giving part of your estate to charities.
Creating Trusts Without Family
Revocable and irrevocable trusts are beneficial for no heirs estate plan options. Trusts offer several benefits, including asset protection, reduced tax liability, and greater control over the distribution of assets.
A trust can benefit an individual or organization, including friends, universities, and nonprofits. You can even create a pet trust to provide for your pets after your death. As mentioned above, a trust can provide income for you and/or other individuals during your lifetime and then distribute the assets to another beneficiary upon your death.
Trusts give you greater control over how the beneficiary uses your assets. You can direct how the funds and assets can be used, such as creating scholarships for women entering the health field as surgeons.
During your lifetime, you can serve as the trustee for your trust. After your death, you can name a corporate or professional trustee to manage the trust.
Fiduciary Executor When No Family: Naming a Trusted Executor or Personal Representative
A personal representative or executor is responsible for administering your estate according to the terms of your will. Generally, spouses name each other as their personal representatives or executors. Individuals without a spouse may name an adult child to administer their estate.
If you do not have family members to serve in this role, you can choose a trusted friend or attorney as your personal representative. You may also consider hiring a professional fiduciary for this role.
Plan for Health and Final Wishes
The closest family member typically makes medical decisions on behalf of a loved one when they are unable to speak for themselves. For individuals without family, it is crucial to prepare powers of attorney and healthcare directives. Naming a trusted individual to make decisions for you if you become incapacitated avoids the state intervening to make the decisions or appointing someone you do not know to make those decisions.
How Keating Law, PLC Can Help You Build a Thoughtful Legacy
At Keating Law, PLC, our Arizona estate planning attorneys assist clients with all types of estate plans, including non-traditional estate plans. Contact our office to schedule a consultation to discuss an estate plan tailored to your specific needs and goals.