Planning Your Estate Without Having Heirs
Updated: Jun 2
When thinking about the future, estate planning seems hard to a lot of people. When you don't have a spouse, children, or heirs, estate planning is less on the mind. However, if you do not plan for your estate, it will be distributed to someone who may not appreciate what you've worked so hard for or your assets just go to the government. This is what is called, "dying intestate". Estate planning can help ensure that your assets are distributed as you intend and that your wishes are carried out after your death.
You should consider these steps when planning an estate
Know Your Assets
The first step in planning your estate is knowing exactly how much money you have. This way, you can allocate the assets however you choose.
Figuring Out Where You'd Like Your Assets to go to
If you don't have anyone close to you that you would like to pass on your assets to, you can choose someone of your choosing outside of blood related individuals. You can choose your neighbor, your friends, or even someone that you know that would benefit greatly from the gift. However, if there are no relatives or anyone close to whom you want to give your property and assets, then it becomes necessary to consider whether you wish to donate them to charitable organizations or public institutions.
Which Organization to Choose From?
You will first find what you are passionate about. Then from there, you can see which organizations are doing well within that passion. Lastly, you'd need to make sure it is a verified charity that is approved by the Internal Revenue Service.
How does Estate Planning Work with a Charity?
You would add that charity to a charitable remainder trust. A charitable remainder trust is a gift of assets that is placed in an irrevocable trust. Then, for the allotted amount of time or until you pass (depending on your choosing), you will receive a stream of income. Then, once the time is up, or you have passed away, the remainder of the trust goes to the charity you chose.
Start planning your estate plan today!
There are many ways to plan your estate. If you're interested in learning more about estate planning, we invite you to contact us at 909-451-9819. We'll be happy to answer any questions you might have.