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How Should Single People Plan Their Inheritance?

Planning for inheritance is simple for married people. There is enough literature available to guide them on how to plan their inheritance. But the case is not so simple for single people.

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Amit Sethi
June 20, 2023
How Should Single People Plan Their Inheritance?

In the case of single people, the entire asset is usually owned by the single owner. In some cases, there is joint ownership of certain assets, but this is very rare in single people’s cases. Hence, single people must keep a plan ready for their assets’ distribution in case of any eventuality. So, let’s find out how single people can plan their inheritance so that the assets do not end up in the hand of unintended people.

Identify The Heirs Of Your Assets

Who should inherit your assets after your death? This should be thought out properly and named in your will. You may want to check if there are assets such as bank accounts where you have added beneficiaries while opening accounts. Such beneficiaries will take precedence over your will. In case there is no will, it will be difficult to pass it on to your relatives or anyone that you might have wished. In the absence of a will and legal heirs, the state may take possession of your assets.

As a single person, you have the flexibility to choose who will inherit your assets. Consider your family members, close friends, or even charitable organizations that you want to support. Review and update your beneficiary designations on insurance policies, retirement accounts, and other financial assets regularly to ensure they align with your current intentions.

Define The Proportion Of Your Assets For Each Heir

Once you identify who should own your assets, you should also define the proportion for the heirs if there is more than one. Individual assets should also be mentioned in the will. For example, you may want to give one home to person A while the other assets at another location should go to B. Similarly, jewellery, movable or immovable assets can be distributed in the same manner.

Venket Rao, Founder, Intygrat Law Offices LLP, explains, In the circumstances of bequeathing of immovable property to some trust upon the absence of no family member alive, then the attestator should be circumspect ― The attestator shall be cautious while giving any of the property to the Trust then certain things to be kept in mind which are:

  • The Trust should be competent to use the property in the manner as intended by the attestator.
  • The Trust should be having an antecedent of performing the intent of the attestator

Name The Power Of Attorney

In case the person is incapacitated, there should be a power of attorney who can decide on his or her behalf. The power of attorney will have to take decisions on the matter of finances and health.

Financial decisions include accessing your bank account, executing your will and distribution as per your will, and payment of any outstanding bills on your behalf.

An attorney for health care decisions is also known as a health care proxy. This is required in case you are not able to decide on your health matter. For example, there is an emergency and some important medical procedure must be performed. Since you may not be in your right sense or fit enough to take the decision, an attorney can take it on your behalf.

Finally, planning for inheritance is as important for single people as it is for married ones. Do not postpone your decision for tomorrow. Plan a codified will if you have already planned it in your mind.

 

The author is an Independent Financial Journalist

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