Why Childless Couples With Wealth Still Need a Will
Having $2M in retirement accounts and no kids doesn't eliminate estate planning needs. Here's why a will still matters.
It's a reasonable assumption: no children, no debt, and a tidy $2 million stacked across IRAs and 401(k)s — so why bother drafting a will? For couples in their 50s who feel financially settled, the paperwork of estate planning can seem like a formality rather than a necessity. But that instinct, financial advisers and estate attorneys consistently warn, is a costly misconception.
The scenario posed to MarketWatch involves a couple with significant complexity hidden beneath an apparently simple financial picture. They own not one but three properties — a primary residence, a vacation home, and a property in another state that belonged to the wife's mother. That out-of-state home alone introduces a layer of legal exposure most people underestimate. Without a will or trust, that property could be subject to probate proceedings in a separate jurisdiction, meaning two simultaneous probate processes upon death rather than one.
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Retirement accounts like IRAs and 401(k)s do pass outside of a will through beneficiary designations, which is a point couples often cite as a reason to skip formal estate documents. But beneficiary forms can become outdated, list deceased individuals, or simply be left blank — and when that happens, assets can revert to an estate and flow through intestacy laws that may not reflect anyone's actual wishes. For a childless couple, state intestacy rules could direct assets to siblings, parents, or more distant relatives rather than a surviving spouse or chosen heir.
There is also the question of what happens if both spouses die simultaneously or within a short window of each other — a contingency that a well-drafted will or revocable living trust directly addresses. Beyond asset distribution, estate documents govern who holds power of attorney for financial and healthcare decisions during incapacity, a risk that rises as people age into their 60s and beyond. Without those designations in place, a court may appoint a guardian or conservator, removing personal control at the moment it matters most.
The bottom line is that wealth and simplicity are not the same thing. A $2 million portfolio with multiple real estate holdings across state lines is, legally speaking, a complex estate — and treating it otherwise is a gamble with consequences that outlast the people taking it. Continue reading at MarketWatch.com
