The childless trend among Americans is causing a complex challenge in estate planning. As of 2018, approximately 16.5% of adults aged 55 and older were childless, according to the U.S. Census Bureau. This number has risen to 47% among adults under 50 by 2023, as per a Pew Research Center survey. Without a next generation to rely on, the question arises: who will take care of these childless Americans, ensure their wishes are honored, and manage their assets upon death? This is a significant concern for estate planning, as highlighted by attorney Kelsey Simasko, who notes that it's a challenging and often confusing process. The traditional approach to planning assumes the presence of a next of kin, but this is not always the case for the growing number of childless individuals. Only 19.9% of childfree adults have a will, compared to 32% of the general population, according to a Childfree Trust survey. This lack of planning can lead to serious consequences, including lengthy and costly probate court proceedings, which can consume up to 10% of an estate's value. Childless Americans also have pets that require care, with 76.9% owning pets, according to Childfree Trust's survey. So, who should they turn to for help? First, childless individuals should consider finding trusted friends or relatives to serve as power of attorney (POA), executor, and trustee. However, in cases where no suitable individuals are available, professionals like attorneys, financial advisers, or trust banks can be called upon. Childfree Trust, for instance, offers services to become the next of kin for their clients, providing a solution for those without a designated POA. Companies with trust practices, such as Plante Moran or Northern Trust, can also assist in managing financial affairs and ensuring inheritances are distributed correctly. Childless Americans should focus on saving for retirement and long-term care, as they don't need life insurance. They should also consider disability and long-term care insurance, as well as burial insurance for funeral expenses. Additionally, naming a pet guardian and leaving funds for pet care in a will or pet trust is essential for those with furry companions. The concept of legacy is also evolving, as many childless individuals choose to leave their money to charities or nieces, nephews, and siblings, rather than direct descendants. This shift in legacy planning reflects a desire to have a personal impact and philanthropic purpose.
