Estate planning is often dismissed as something only parents with young children need to worry about, but that assumption can be costly.
For couples in their 50s sitting on $2 million in IRAs and 401(k)s, the question of whether a will is necessary has a straightforward answer: yes, absolutely.
Without children to serve as default heirs, the stakes of dying intestate — without a legal will — are arguably higher, not lower, for childless couples.
State intestacy laws vary widely, and without a will, assets may not automatically pass to a surviving spouse in the way most people assume they will.
Retirement accounts like IRAs and 401(k)s are governed by beneficiary designations, which operate entirely outside of a will and supersede whatever a will might say.
That distinction matters enormously, because outdated or missing beneficiary designations can redirect assets to unintended recipients, including former spouses or estranged relatives.
A couple with $2 million in tax-advantaged retirement accounts has built significant wealth, and protecting that wealth requires more than simply assuming a spouse will inherit everything automatically.
Beyond beneficiary designations, a comprehensive estate plan typically includes a will, a durable power of attorney, and healthcare directives that spell out medical wishes if one partner becomes incapacitated.
Childless couples also face unique succession challenges when both partners die, since there is no natural line of inheritance and assets could end up distributed according to state law rather than personal wishes.
Charities, friends, siblings, nieces, nephews, or other individuals a couple may wish to benefit would receive nothing without explicit legal documentation naming them as beneficiaries or heirs.
The cost of establishing a basic estate plan is modest compared to the potential legal and financial complications that arise when someone dies without one in place.
Estate attorneys frequently advise clients to revisit their plans every three to five years, or after any major life change such as a move to a new state, which may have different inheritance laws.
For couples approaching retirement age with substantial savings, getting an estate plan in place is not a morbid exercise but a practical financial responsibility.
