Should a childless couple in Florida have an estate plan?

These days, for very personal reasons, some married couples in Florida choose not to have children. However, this does not mean they should neglect estate planning. After all, one of the few certainties in life is that one day we will all die, so it is important to be prepared.

For example, what will happen if they need long-term care in their old age, and do not have adult children who would care for them? Some couples plan for this by purchasing long-term care insurance. Other couples feel comfortable paying for long-term care costs out of pocket, particularly if they aren’t that interested in passing on their assets after they die.

This brings us to another subject: inheritances. If a childless couple is interested in passing on their assets to others after they pass away, they will need a will or trust or both. They may choose to name relatives or friends as heirs, or they may choose to pass their assets on to a favorite charity.

In addition, childless couples may also want to address the issue of life insurance. While they may not need as much life insurance coverage as a couple with children would need, they may still want a life insurance policy, as life insurance proceeds go directly to the beneficiary without having to pass through probate.

Couples without children may, over the years, accumulate a significant amount of assets, particularly if they both worked. Moreover, they may still have opinions regarding how they want their assets handed down after their death, even if they don’t have children. Therefore, it is just as important for childless couples to create an estate plan as it is for couples with children.

Source: The Wall Street Journal, “Financial Planning for Childless Couples,” Dan Yu, Feb. 17, 2017