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More Americans are choosing not to have children, complicating traditional wealth and estate planning, experts say.
According to a 2021 U.S. Census Bureau report, approximately 15.2 million adults over the age of 55, or approximately 16.5% of the population, did not have children in 2018. Between 2018 and 2023, the percentage of adults under 50 who say they are unlikely to have children also rose from 37% to 47%, according to a survey of more than 2,500 adults by the nonprofit Pew Research Center.
If there is no next generation, who will care for childless Americans, ensure their death wishes are met, and oversee where their assets go after death?
“This is one of the biggest issues facing estate planning,” says Kelsey Simasko, an attorney with the Simasko Law Firm. “It’s really the hardest thing and can trip us up over and over again,” says Simaszko, who is among the millions of people without children.
Why are the plans different?
Jay Zygmont, chief executive officer of ChildFree Trust, which provides financial and estate planning services for childless people, said plans typically assume that the American has an immediate family member.
“People have wills because they have children,” Zsigmont says, but the truth is that everyone should have a will.
A survey of more than 600 adults by Childfree Trust found that only 19.9% of childless adults have a will, compared to 32% of the general population. More than 70% of childless adults report never creating a legal planning document, such as a will, trust, or power of attorney (POA).
“The number one reason they don’t do it is they can’t leave their names behind,” Zsigmont said.
What’s the problem?
Without a medical and financial POA, the person’s hope if he or she becomes incapacitated is unknown. Personal health and financial decisions can be left in the hands of strangers or courts, which can result in doing things you don’t want or exposing you to abuse.
Estates without clear instructions can be subject to lengthy and costly probate court proceedings that can consume up to 10% of the estate’s value and take months or even years to resolve, Childfree Trust said in its report. Federal Reserve Board data for 2022 shows that childless couples are among the top wealth accumulators, with a median net worth of $398,960 and an average of $1,867,480.
And while childless Americans have children they don’t have to worry about, many have pets that would need to be taken care of if something were to happen, experts said. According to a survey by ChildFree Trust, 76.9% of childless Americans own a pet. That’s more than about 71% of the general population, or 94 million families, who own pets, according to the 2024-2025 National Pet Owner Survey conducted by the American Pet Products Association.
Who should childless Americans call?
Americans without children should first try to find a trusted friend or relative to serve as POA, executor or trustee, Simasko said.
“Take a step back and pretend something happened to the two of them, and then who’s going to come running?” she suggests people imagine. “If the answer is your sister, then put her down first.”
Siblings who are close in age can be difficult because you and your sibling may need help at the same time. But that’s why people have to think, “Okay, who’s second? Third? Fourth?” Szymasko said.
You could call a friend, but that can feel like a big ask, especially as a health care worker, Simasko said. “The most difficult decision is to take them off life support,” she says.
What if there is no one to delegate the task to?
Becoming someone’s medical or financial POA, executor or trustee is a big responsibility that friends or younger relatives may not want to take on. Or maybe you don’t have enough trustworthy people in your life.
Just as the number of childless Americans is increasing, so too is alienation. Last year, a YouGov poll of some 4,400 adults showed that 38% of American adults (comparable to the divorce rate for first marriages) are estranged from their families. Of these, 24% were estranged from their siblings, 16% from their parents, 10% from their children, 9% from their grandparents, and 6% from their grandchildren.
Experts say in such cases, it’s better to consult a professional, such as a lawyer, financial advisor or trust bank.
As a childless couple herself, Zsigmont felt there was a gap that needed to be filled. Childfree Trust partners with trust companies to provide childless individuals and couples with medical and financial powers of attorney and the ability to act as executors and trustees of estates.
“Essentially, we become their next of kin,” Zsigmont said. Childless Trust will be the name clients can write down to address their needs, he said.
Companies that operate in trusts, such as Plante Moran and Northern Trust, can also be helpful.
“Plante Moran can be appointed as trustee and executor,” said Dawn Zinski of Plante Moran. She said the company handles all financial affairs as directed by wills and trusts, ensuring inherited assets go where they are supposed to go and bills are paid. Trust banks may also be listed as financial POA, but medical POA is often reserved for someone close to the individual due to the personal nature of the decision, she said.
How should childless Americans plan financially?
Experts say that like everyone, Americans without children should save enough for retirement, especially for long-term care.
Zygmont said he doesn’t need life insurance because he doesn’t have to worry about leaving a legacy or passing wealth down to his children for generations. “But they need disability insurance and long-term care insurance,” he says. In the ChildFree survey, less than 13% of respondents had long-term care insurance, even though they are statistically more likely to need paid care later in life.
People should also purchase burial insurance for funeral expenses, he said.
Because so many children own fur babies, experts say it’s important to remember to designate a guardian for your pet and leave money for their care through a will or pet trust.
Zygmont said people without children can enjoy the money and spend it as they wish because they may have no heirs.
But not all childless people are spendthrifts. “Basic saving and spending habits may be ingrained,” Zinsky said. She says many people tend to leave their money to charities, nieces, nephews and sometimes siblings.
“In the absence of lineal descendants, the concept of inheritance is restructured from one of familial inheritance to one of personal influence and charitable purpose,” the Childfree Trust said in its report.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Contact her at mjlee@usatoday.com and subscribe to the free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning..
