Here’s a startling fact: the number of Americans choosing to remain childless is skyrocketing, and it’s shaking up the world of estate planning in ways you might never have imagined. But here’s where it gets controversial—while some see this as a personal choice, others argue it’s creating a complex web of financial and legal challenges for the future. So, what happens when there’s no next generation to inherit your wealth or carry out your final wishes?
By 2018, a staggering 15.2 million adults aged 55 and older—roughly 16.5% of the population—were childless, according to a 2021 U.S. Census Bureau report. Fast forward to 2023, and a Pew Research Center survey revealed that 47% of adults under 50 now say they’re unlikely to have children, up from 37% just five years earlier. And this is the part most people miss—this trend isn’t just about personal preferences; it’s reshaping how we think about wealth, legacy, and end-of-life care.
Without children to step in, who will ensure your medical and financial wishes are honored if you become incapacitated? Who will manage your estate and decide where your assets go after you’re gone? These questions are keeping experts like Kelsey Simasko, an attorney at Simasko Law, up at night. ‘This is one of the biggest issues facing estate planning,’ she says. ‘It’s truly the hardest thing to do and can stump us a lot of times.’
Here’s the kicker: traditional estate planning assumes you have a next of kin. But for the childless, this assumption falls flat. Jay Zigmont, CEO of Childfree Trust, points out that many people only create wills because they have children. ‘But everyone really should have one,’ he emphasizes. Yet, only 19.9% of childless adults have a will, compared to 32% of the general population. Even more alarming? Over 70% of childless adults haven’t completed any legal planning documents, including power of attorney (POA) or trusts.
Why the reluctance? Zigmont explains, ‘The number one reason they don’t is they have no name to put down.’ But here’s a thought-provoking question: if you’re childless, does that mean your wishes are less important? Or is it simply that the system isn’t designed for you?
The stakes are high. Without a medical or financial POA, your personal health and financial decisions could be left to a court or stranger, potentially leading to outcomes you’d never want. And without clear directives, your estate could end up in probate court, a process that can devour up to 10% of your estate’s value and drag on for years. Consider this: childfree couples are among the wealthiest, with a median net worth of $398,960 and an average of $1,867,480, according to 2022 Federal Reserve data. That’s a lot of money at risk.
And here’s another twist: while childless Americans may not have kids to worry about, many have pets that depend on them. A whopping 76.9% of childless Americans own pets, compared to 71% of the general population. So, who will care for your furry family if something happens to you? Experts stress the importance of naming a pet guardian and setting aside funds for their care in your will or a 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 complex. 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 are filling this gap by partnering with trust companies to offer medical and financial POA services, as well as acting as executors and trustees. ‘Essentially, we become their next of kin,’ Zigmont explains. Other firms, like Plante Moran, allow you to name them as trustees and executors to handle financial affairs according to your wishes.
But here’s a counterpoint: some argue that relying on professionals can feel impersonal. Isn’t there value in having someone close to you make these decisions? Or is it better to leave it to experts who can remain objective?
Financially, childless Americans have unique advantages. Without the need to leave an inheritance, they can spend their money freely or donate it to causes they care about. But Zigmont warns, ‘They still need disability and long-term care insurance.’ Surprisingly, fewer than 13% of childless adults have long-term care insurance, despite being more likely to need it.
So, here’s the big question: as the number of childless Americans grows, how will society adapt? Will traditional estate planning evolve to meet their needs, or will we see a rise in alternative solutions? What do you think? Is the system failing the childless, or is it their responsibility to plan differently? Let’s start the conversation—share your thoughts in the comments below.
