Jenny Xia Spradling, co-CEO of FreeWill, a free estate-planning tool that emphasizes charitable giving, hopes child-free and unmarried people don’t feel discouraged. In fact, it can be “even more important” for them to have a basic estate plan, she says. Otherwise, assets will be distributed based on your state’s intestacy laws—which could mean they go to distant relatives or, much more rarely, the government itself.

“If you have a spouse or kids [and] you don’t have an estate plan, the government’s going to distribute things maybe largely as you would expect,” says Xia Spradling, noting assets will typically go to the spouse or children unless otherwise stipulated. “If you don’t, then the government is going to do some maybe esoteric things with your assets, which is looking for your next of kin and spreading out in ways that probably are not what your wishes are.”

To that end, she encourages everyone to name beneficiaries—whether a niece, close friend, neighbor, charity, etc.—and to think through how you want your assets distributed after your death. Additionally, it is important to set up durable financial power of attorney and medical power of attorney contracts naming those who can make decisions on financial and medical matters if you are unable to. Finally, name a trustworthy executor, who will be responsible for dividing up the assets.

And though it may be uncomfortable to consider, Xia Spradling says it’s important for those without a spouse or children to establish their funeral wishes and who will execute those plans.

“It is very helpful to the people that you care about to give a little bit more guidance around, do you want a cremation? Do you want a funeral? What would you like that to look like?” she says.

Differing priorities

While it’s important for everyone to have an estate plan, Jay Zigmont, a certified financial planner and founder and CEO of Childfree Wealth, says those who are unmarried and child-free often have very different financial priorities than those with kids throughout their lives. They are likely less worried about leaving behind a financial legacy for someone else to inherit; that changes how they live their lives, such as potentially saving less or forgoing expenses like life insurance. They are also often more able or willing to leave more assets to charity.

Zigmont, author of the soon-to-be-published Childfree Guide to Life and Money, calls leaving the division of assets up to the state his “worst nightmare.” Many people do not have close relationships with their families (increasingly more Americans are going “no contact”), he says, and may not want them to inherit their estates. Others may simply not know their extended families well, and want any remaining assets to go to causes they care about instead.

And all of this takes on another layer of importance for members of the LGBTQ+ community, who are less likely than heterosexual couples to be married. Many states and localities still don’t have protections in place for assets to go to, say, long-term unmarried partners, says Xia Spradling. Rights for those in same-sex marriages, domestic partnerships, and civil unions can vary widely depending on local laws.

Finally, Zigmont says, there is an increased worry of financial elder abuse when ties are tenuous. Unfortunately, people may not be as caring with a distant relative when they find out money is on the line.

“If I’m named in the will as a nephew, and I’m making choices for my aunt, do I put her in the good home that’s expensive, that uses up her estate, or [do] I put her in the crappy care, where I get more?” he says.

‘Who lets the dog out?’

All of that said, knowing estate planning is important and actually following through are two very different things, and it might seem overwhelming to determine who to name as a beneficiary. Zigmont says to consider the following: “What do you want the second line of your obituary to say?”

“The first line will be like, ‘Jay died at this age, in this location,’ and then the second line is normally like, ‘Father of three leaves behind blah, blah, blah,’” he says. “Well, we’re not going to do that. So what type of impact do you want to make? And it takes a little bit of soul searching to work through it. But once we get there, we then try to shift the money to get there.”

That could mean leaving money to a charitable cause or to a struggling friend. Zigmont, for example, recalls a client who decided their assets would go toward paying off the mortgage of a less well-off friend.

And then there are still other considerations—like a pet. Both Xia Spradling and Zigmont emphasized the importance of carefully planning what will happen with your furry friends. Literally consider, says Zigmont, “who lets the dog out?”

Some people will leave a trust to whoever takes on the care of the pet, so that it is not a financial burden. Others plan to send senior cats, for example, to homes created specifically for their care. Whatever you decide, make sure the potential new owner is able and willing to receive the animal.

“If you’re going to give your pet to a person, are you giving them money to manage that animal?” he asks. “What type of care do you want the animal to get? These are hard questions.”