More adults in the United States — particularly those in their 50s, 60s, 70s, and 80s — are living alone than ever before.
Many seniors today are choosing to age in place and maintain their independence for as long as possible, even if that means going it alone, outside a traditional family support structure.
But independence has limits, and those limits can surface with age as physical and cognitive decline set in.
When health begins to slip and no reliable support system is in place, the risks of living alone become more apparent — and the consequences of having an estate plan that is not designed for solo aging become more serious.
Who Takes Care of Solo Agers?
How did I end up alone at this stage of life? Who can I call for help? Who can make decisions for me if I’m unable? How long can I care for myself, and what happens when I can’t?
These are among the questions older adults living alone, whether by choice or by circumstance, are increasingly asking as the “gray revolution” in America drives the rise of the solo ager.
While some of these questions are more abstract and existential, others are direct and practical. From an estate planning standpoint, they raise issues around safety, support, finances, and long-term care.
- Thirty-nine percent of solo agers say they have no one to call when they’re sick and confined to bed, 55 percent have no one with whom to discuss medical decisions, and 43 percent have not identified a health care decision-maker, according to research from Bethesda Health Group.
- A survey from the Society of Actuaries found that just 37 percent of solo agers have a medical power of attorney and only 31 percent have a financial power of attorney, even though 87 percent express concerns about potential changes to their physical and cognitive abilities.
Gaps in planning can lead to gaps in care that worsen with age. Aging in place and solo aging may be choices, but not having an estate plan, or named decision-makers who can step in when needed, can leave solo agers subject to state law and court decisions for some of life’s most important decisions, including:
- Who is authorized to make medical decisions in an emergency
- Who can access bank accounts and pay bills if capacity is lost
- Who manages property, investments, and ongoing financial obligations
- Whether a court-appointed guardian is needed
- Who is responsible for arranging care, housing, or placement in a facility
- How assets are located, secured, and distributed after death
Exactly who will take care of a growing solo ager population is a topic for debate — one that the co-director of the National Center for Family and Marriage Research at Bowling Green State University calls “the million-dollar question” in a recent Wall Street Journal article.
Part of the answer is that solo aging Americans have an outsized role in taking care of themselves. That role begins with an estate plan that recognizes their unique position and specific vulnerabilities.
Estate Planning Basics for Solo Agers
Estate planning is essential for everyone. But for solo agers, a plan takes on added importance, and a lack of planning can have even more dire outcomes. Their plan should focus on a few basics that account for the absence of an automatic support system.
- Naming someone to step into financial control. A financial power of attorney allows a trusted person to manage money matters if capacity is lost, either slowly or suddenly. This person is authorized to pay bills, access accounts, handle insurance, and keep obligations current. Even basic financial tasks can require court involvement when there is no power of attorney.
- Designating a medical decision-maker. A health care proxy ensures that someone has the legal authority to make medical decisions when a person cannot communicate their wishes. For solo agers, this fills a gap that would otherwise default to family members who may not exist or may not be appropriate because of physical or emotional distance.
- Documenting care preferences in advance. Advance directives spell out preferences for treatment, end-of-life care, and other medical decisions. They provide guidance when rapid decisions need to be made and reduce uncertainty for whoever is tasked with making them.
- Establishing a clear plan for assets and responsibility. A will — or, in some cases, a revocable trust — ensures that one’s money and property are distributed according to their wishes and that someone is formally responsible for carrying out those instructions. Trusts can also provide continuity in asset management if incapacity occurs.
- Making assets and information accessible. An estate plan can break down if no one can find the documents and instructions needed to carry it out. A clear record of accounts, property, and key documents, along with directions on how to access and implement them, helps ensure that the person stepping in can act decisively and effectively.
- Choosing the right people (and naming backups). A plan’s effectiveness depends on who is chosen to carry it out. That may be a trusted friend, a professional fiduciary, or a combination of both. What matters is that the person is willing, capable, and legally authorized to act.
These considerations may be different for those living alone than for those living with or near family. Professional fiduciaries may make more sense for seniors living alone. Naming a backup helps prevent gaps if the first choice is unable to act.
Aging and Living Alone, With Help
A clear division of responsibility in an estate plan gives solo agers assurance that someone can reliably offer support and guidance, not only in daily life, but at the end of life or when their life changes unexpectedly.
Whether you have a strong support system or are navigating life on your own, everyone grows older, and everyone needs an estate plan to manage the transitions of aging.
Aging solo doesn’t have to mean going it alone. The experienced estate planning attorneys at Kurre Schneps can help.
