Here’s a startling reality: a growing number of Americans are choosing to live child-free lives, and it’s shaking up the world of estate planning in ways you might not expect. But here’s where it gets controversial—while some see this as a personal choice, others worry about the long-term implications for society and individual well-being. Let’s dive into why this shift is more than just a lifestyle trend; it’s a financial and legal puzzle that demands attention.
By 2018, a U.S. Census Bureau report revealed that approximately 15.2 million adults aged 55 and older—about 16.5% of the population—were childless. Fast forward to 2023, and a Pew Research Center survey of over 2,500 adults showed that 47% of those under 50 were unlikely to ever have children, up from 37% just five years earlier. And this is the part most people miss—without children to inherit their assets or make decisions on their behalf, these individuals face unique challenges in planning for their later years.
Kelsey Simasko, an attorney at Simasko Law and a childless individual herself, highlights the complexity: ‘This is one of the biggest issues facing estate planning. It’s truly the hardest thing to do and can stump us a lot of times.’ The traditional assumption that everyone has a next of kin no longer holds, leaving many wondering: Who will ensure their wishes are carried out, and where will their assets go after they’re gone?
Jay Zigmont, CEO of Childfree Trust, points out that estate planning often revolves around having children. ‘People have wills because they have kids,’ he says, but the reality is that everyone should have one. Yet, only 19.9% of childfree adults have a will, compared to 32% of the general population. Even more striking, over 70% of childfree adults haven’t completed any legal planning documents, including wills, trusts, or power of attorney (POA). Why? Often, it’s because they don’t know who to name as their beneficiary or decision-maker.
Here’s the kicker: without a medical or financial POA, your wishes may be ignored if you become incapacitated. Decisions about your health and finances could fall to a stranger or a court, potentially leading to outcomes you’d never want. And if your estate lacks clear directives, it could end up in probate court—a process that can drag on for months or years, consuming up to 10% of your estate’s value. Childfree couples, who are among the top wealth accumulators with a median net worth of $398,960, have a lot at stake.
But it’s not just about money. Many childless Americans have pets—76.9% of them, according to Childfree Trust, compared to 71% of the general population. Who will care for these furry family members if something happens to their owners? Experts stress the importance of naming a pet guardian and setting aside funds for their care in a will or pet trust.
So, who should childless Americans turn to? Simasko suggests starting with trusted friends or relatives. ‘Take a step back, pretend something happened to both of you, who comes running?’ she advises. But what if you don’t have anyone? This is where it gets even more complicated—estrangement is on the rise, with 38% of American adults estranged from a family member, according to a YouGov poll. In such cases, professionals like attorneys, financial advisers, or trust banks can step in.
Companies like Childfree Trust and Plante Moran offer solutions tailored to childless individuals. ‘Essentially, we become their next of kin,’ Zigmont explains. These organizations can act as POA, executor, or trustee, ensuring that your wishes are honored and your assets are managed according to your instructions.
Financially, childless Americans have unique advantages and challenges. While they may not need life insurance, disability and long-term care insurance are crucial. Yet, fewer than 13% of childfree individuals have long-term care insurance, despite being more likely to need it. And let’s not forget burial insurance—planning for funeral expenses is a practical step everyone should take.
Here’s a thought-provoking question: Without children to pass wealth to, how should childless individuals define their legacy? Many choose to leave their money to charities, nieces, nephews, or siblings. As Childfree Trust notes, ‘The concept of legacy is reframed from one of familial succession to one of personal impact and philanthropic purpose.’
So, what do you think? Is the rise of childlessness a societal shift we should embrace, or does it pose challenges we’re not fully prepared for? Share your thoughts in the comments—let’s start a conversation that matters.
