Here’s a startling fact: the number of childless Americans is skyrocketing, and it’s throwing a wrench into the world of estate planning. But here’s where it gets controversial—without kids to inherit, who’s left to carry out their final wishes or manage their assets? This isn’t just a niche issue; it’s a growing trend with far-reaching implications.
By 2018, a U.S. Census Bureau report revealed that approximately 15.2 million adults aged 55 and older—about 16.5% of the population—were childless. Fast forward to 2023, and a Pew Research Center survey of over 2,500 adults showed that 47% of those under 50 believed they were unlikely to ever have children, up from 37% just five years earlier. And this is the part most people miss—childless individuals are often wealthier, with childfree couples boasting a median net worth of $398,960 and an average of $1,867,480, according to 2022 Federal Reserve data.
So, what happens to all that wealth? Without a clear heir, estate planning becomes a complex puzzle. Kelsey Simasko, an attorney at Simasko Law, calls it ‘one of the biggest issues facing estate planning today.’ She adds, ‘It’s the hardest thing to navigate and often leaves us stumped.’ Simasko, herself childless, understands the challenge firsthand.
Traditional estate planning assumes there’s a next of kin to step in. But for the childfree, this assumption falls flat. Jay Zigmont, CEO of Childfree Trust, points out, ‘People create wills because they have kids, but everyone should have one.’ Shockingly, only 19.9% of childfree adults have a will, compared to 32% of the general population. Even more concerning? Over 70% of childfree adults haven’t completed any legal planning documents, including wills, trusts, or power of attorney (POA).
Here’s the kicker—without a medical or financial POA, your wishes could be ignored if you become incapacitated. Decisions about your health and finances might fall into the hands of a stranger or a court, potentially leading to outcomes you’d never want. And if your estate lacks clear directives, it could end up in probate court, a process that can devour up to 10% of your estate’s value and drag on for years.
But it’s not just about money. Many childless Americans have pets—76.9% of them, according to Childfree Trust, compared to 71% of the general population. Who will care for these furry family members if something happens? Experts stress the importance of naming a pet guardian and setting aside funds for their care in a will or pet trust.
So, who should childless Americans turn to? Simasko suggests starting with trusted friends or relatives. ‘Imagine something happens to you—who would rush to your side?’ she asks. But what if you don’t have anyone? This is where it gets even more contentious—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 POA, executor, and trustee services. ‘We become their next of kin,’ Zigmont explains. Firms like Plante Moran and Northern Trust also provide similar services, ensuring financial affairs are handled according to your wishes.
Financially, childless Americans have unique advantages. Without the need to leave an inheritance, they can skip life insurance and focus on disability and long-term care insurance—yet fewer than 13% have the latter, despite the higher likelihood of needing paid care later in life. They can also spend freely or donate to charities, redefining legacy as one of personal impact rather than familial succession.
But here’s the question—is society prepared for this shift? As the number of childless individuals grows, will traditional systems adapt, or will we see a rise in professional ‘next of kin’ services? What do you think—is this a trend we should embrace, or does it highlight a deeper societal gap? Let’s discuss in the comments.**
