One of the most important elements of financial planning is to decide what will happen to your assets after your die.
It's even more important for the single person as opposed to married people.
Married people can transfer unlimited wealth to a surviving spouse without incurring estate taxes.
This option is not available to single people.
Another danger for unmarried people is that they have no spouse to make medical, legal or financial decisions for them when they become incapacitated.
That makes it even more imperative that single people set up a sound estate plan.
There are several ways in which a single person can set up a sound estate plan, but since estate laws vary from state to state, by far the smartest approach is to hire an attorney who specializes in estate planning.
Some lawyers will charge by the hour, while others will do a basic estate plan for a fixed price.
To save time, and possibly some money, you can purchase a software packages that will help you organize your assets and other information that the attorney will need to prepare your estate plan.
A good estate plan will include not only a will, but will also include a durable power of attorney and a health-care directive, both of which are important if you become incapacitated.
You need these documents because you will have the ability to designate who makes those decisions for you if you are incapacitated.
A living will is another document that should be included in your estate plan.
This document will clarify your wishes in end-of-life medical treatment, such as whether or not you wish to remain on life support machines.
In addition to getting the proper legal documents in place, you should also leave a letter of instruction to let your heirs know your wishes for your funeral plans as well as your wishes for distribution of your personal assets.
Don't put off making these important decisions and getting the proper documents in place.
Life can change in a split second, and then it may be too late for you to do anything.