Tuesday, June 3, 2014
Seventeen million Americans over the age of 65 are unmarried and now facing retirement. For many of these individuals, the question of how to distribute their wealth after they die is complicated. Financial advisors recommend that if you have more than $100,000, you do not want to die without a will or estate plan, “If you do nothing, your money will go to the state. Is that what you want? That’s enough to make them want to consider something else.” You must also consider healthcare directives and who should manage your affairs if you become incapacitated.
Oftentimes people without children disregard estate planning because they do not want to face their mortality. One way to make the process easier is a donor-advised fund, which acts like mutual funds designated for charitable giving and allow an individual to make a one-time or ongoing contribution through the institution, alleviating many fees and paperwork requirements. Donors can designate the funds to be distributed right away or direct grants later.
See Beth Pinsker, Estate Planning for the Young, Rich and Childless, Reuters, June 2, 2014.