Single people in Florida who are looking ahead to the future for financial planning should also take into consideration estate planning. Without a spouse, many of the expected defaults when a person dies do not exist. As Forbes explains, without any estate plan in place, assets generally flow to the nearest living relative before eventually going to the state if there are no relatives.
The options for single people are not one-size-fits-all because the nature of being single can be different for different people. An unmarried person may still have children, for example. He or she may also be in a relationship but simply not be married and still wish to leave assets to a partner. The Teachers Insurance and Annuity Association explains that the options available to single people for estate planning purposes are as varied as their situations.
A Charitable Remainder Trust can be a useful tool for people wishing to donate assets to charities after they die. Persons in relationships who are not married may find a revocable living trust a good way to ensure that their partners inherit their assets. An irrevocable life insurance trust may offer people the option to provide for a partner as well as adult children who were born before the new relationship began. A person’s assets could flow to the spouse upon death and then, when the spouse dies, the assets could go back to the first spouse’s children.
Gifting options while a person is still alive can offer the opportunity to enjoy the giving and see the benefits received by children and grandchildren. These include medical expenses gifts, tuition gifts and other annual gifting options that may not be subject to any taxation.