When you hear of the term “estate planning,” you probably think of an older couple with a significant number of assets. With lots of heirs and plenty of people to designate as beneficiaries, an estate plan may seem pretty critical to a large family.
However, what about singles? Should you still commit time to plan your estate? The answer is yes. Your effort to arrange your affairs and plan for your future can protect you from fraud and help you to optimize the value of your assets.
Find a strategy
Your estate plan will look different from anyone else’s depending on your lifestyle, assets, investments, career and final wishes among other things. After analyzing these factors, you will want to select a planning strategy that will allow you to live your life the way you want without compromising your future. You may find it necessary to combine more than one strategy to achieve the estate plan you want.
Some strategies you may consider include the following:
- Trust funds
- Charitable contributions
- Life insurance
- Annual gifting
Plan for success
You do not have to have a complicated estate plan to effectively prepare for your future. According to Fidelity, a reliable estate plan will come with time. As your life progresses, you may need to modify aspects of your plan to more appropriately accommodate your lifestyle.
Circumstances that may impact your plan include marriage, a substantial increase in your assets and changes to the relationships you have with your beneficiaries. Regularly reviewing and updating your plan can help you maintain its function over the years.
