Estate planning is an umbrella term used to describe the legal process of determining who will inherit your assets upon your death. In many cases, these beneficiaries are children or grandchildren of the deceased. But if you don’t have children, you might wonder why this planning is still worth the effort. Here are a few reasons why wills and trusts are a good idea, even for those without offspring.

Other Relatives Can Inherit Assets

Hawaii’s intestacy laws offer specific guidelines on who will inherit assets if you don’t have a will. Without children, this property is directed to your spouse. However, if you don’t have a spouse or they’re no longer living, these assets may be distributed to parents, siblings, or other relatives, such as aunts, uncles, nephews, or nieces. Under Hawaii law, half-siblings and relatives living outside of the U.S. may also be considered viable beneficiaries.

If you don’t want your estate to go to any of these parties, you need to specify that in your will. Even if you do want these relatives to serve as beneficiaries, it may be smart to transfer their assets through a trust. Unlike a will, trusts allow individuals to inherit high-value property without having to go through the hassle of probate court.

The State Can Inherit Assets

If you don’t have any relatives, the state can technically inherit your assets. In some cases, this property will be auctioned off. Some assets, such as land, may be used at the government’s discretion. Given this impersonal handling, many people prefer to name non-relative beneficiaries, such as close friends, coworkers, neighbors, charitable organizations, or religious institutions, in their estate planning documents.

How Should You Choose an Executor or Trustee?

Executors are the individuals in charge of making sure the wishes of your will are carried out. Trustees are parties responsible for managing the property upon your death. In either case, you’ll want to make sure these individuals are both trustworthy and responsible.

In general, seniors prefer to choose younger friends or relatives as executors or trustees.  If you don’t have a person to name, you can choose a bank, attorney, or other authorized institution to act as the executor or trustee. In these cases, a fee will be taken from your estate to cover any related expenses.

When it's time for estate planning, Wills and Trusts Hawaii has the resources to simplify the process, from naming beneficiaries to listing an executor. The Honolulu attorneys will help you navigate the ins-and-outs of preparing a living will or trust. To learn more about their services, visit this firm online, or call (808) 792-8777 to schedule a free initial consultation.