Young Singles

Many singles may have little to start out with, but even they should pay attention to beneficiaries of their 401K plans, bank accounts and other assets. As the young person begins to consider buying a condo or other property, matters of estate planning can become more important to avoid tax burdens to those who will inherit the assets.

Committed Partners

Many committed couples choose not to marry, which bring another set of risks to issues of inheritance. Marriage confers a number of automatic inheritance rights that living-with situations do not. These couples should consider more detailed estate planning to ensure that the partner inherits assets as determined.

Young Married

Young married couples may begin to accumulate assets from jobs or property held in joint tenancy. Although laws generally favor spouses, young couples’ estate planning should ensure that both names are on titles and deeds to facilitate the transfer of assets should the worst happen.

Couples With Children

Having children adds a new dimension to the importance of estate planning. You should consider a guardian for children if both parents die, as well as the usual listing of beneficiaries on accounts and insurance policies. If you have a significant amount of property, you may wish to set up a “testamentary” trust that goes into effect after the death of the parents to ensure that the children are provided for in the future.

In Case of Divorce

The period between separation and divorce can be a bit of an estate planning limbo. In most states, the spouse is entitled to the bulk of your estate until a divorce is finalized. Some planning, like changing beneficiaries, cannot be done until the divorce is final. This delay can involve IRAs, 401Ks and insurance policies.

Newly Widowed

Those individuals who have recently lost their spouse should consider their own plans for passing on an estate to children or others. This foresight can help to reduce the tax burden for the heirs.