Modern families look different than they did half a century or even a decade ago. Many more married couples, especially Millennials and Gen Z’ers, are choosing to remain childless compared to previous generations. These DINKs (dual income, no kids) are a growing demographic. In fact, in 2020, more American couples were married without children (36 million) than married with them (22 million).1
Without childcare expenses like education, clothing, bigger properties, extracurricular activities, and even extra groceries, DINKs are able to hold onto more of their income to use as they desire. DINKs have more time that can be dedicated to advancing their careers, curating their lifestyle, and pursuing other interests like traveling.
Over a lifetime, DINKs have the opportunity to save, invest, and accumulate substantial wealth, some of which may still be leftover once they pass. Even without children to inherit their assets, these couples need to establish a comprehensive estate plan so their assets pass according to their wishes and their healthcare choices are honored.
Children and grandchildren are common beneficiaries for couples who have children during their lifetime, but for DINKs, choosing their beneficiaries isn’t as straightforward. Of course, DINKs will have people and causes that are important to them whom they may wish to pass on their wealth including:
Siblings or other close relatives
Nieces or nephews
Close friends or their children
Not-for-profit or philanthropic organizations
Other organizations like their Alma Mater, religious institutions, organizations like museums, libraries, hospitals, or public spaces like parks
An estate plan is a set of documents that outline how your assets, property, and affairs should be handled during or after your lifetime. It covers more than financial decisions, and everyone can benefit from having one in place. Depending on your situation, you may need all or some of the typical components, including:
Will: This legal document explains how to distribute your assets and chooses the person to do so. Be sure to date and sign it in front of a witness and have it notarized and kept somewhere safe.
Power of Attorney: In case you become unable to handle your own affairs, this document grants legal and financial decision-making authority to someone you trust.
Living Will: Instead of leaving your family and doctors guessing about your preferences for medical and end-of-life care, this document spells it out. It may also be called an advance healthcare directive.
Healthcare Proxy: Though a living will explain your medical preferences, your healthcare proxy identifies the person who will sign off on those decisions on your behalf. It can also be called a Medical Power of Attorney.
Estate Tax Strategy: With the help of tax and legal professionals, you can establish an estate tax strategy to find the most tax-efficient solutions to distribute your assets either to individuals or organizations.
Trusts: As a way to avoid the probate process and unnecessary taxation, some people choose to use a trust as a vehicle for holding and distributing assets. A trust attorney can explain the different types of trusts including those that are revocable (changeable) or irrevocable (unchangeable). Trusts can pass between you and a spouse, or you, a spouse, and another person or entity. They can pay out during your lifetime, afterwards, or both.
Business Succession Solutions: If you own a business, a succession strategy explains what happens if you retire or are unexpectedly unable to fulfill your leadership role. Such strategies are intended to ensure operational continuity in accordance with an owner’s vision and values.
Letter of Intent: Though not legally binding, this document may help the executor of your estate distribute sentimental items. It’s also a way to explain your choices for funeral arrangements, celebrations of life, or other non-financial matters important to you.
Beneficiary Designation: Your retirement, brokerage, and insurance accounts most likely required you to designate beneficiaries right inside your profile. Review these designations regularly, especially if anything changes in your family size or status.
With any of these components, it is still important for childless couples to think carefully about how they want their affairs to be handled after their passing.
Without an estate plan, your assets are at the mercy of local laws and courts. Without a will, a probate court will appoint an executor and try to locate beneficiaries, most often the surviving spouse or immediate family members, to settle your debts and distribute your assets. In many cases, this may be aligned to your wishes, but if it isn’t, you will want to be sure that you have directives in place to say so.
Even if the beneficiaries the state identifies are the same as who you would have chosen, the probate process can be a long, public, and painful experience if your affairs aren’t in order. You also won’t have any control over how your assets are distributed, which can create complicated tax situations for your beneficiaries.
Whether you’ve decided to build your careers before your family, are certain you do not want to be parents, or are leaving your options open while you see where life takes you, estate planning should be part of everyone’s overall financial picture. Though you do not currently have children as heirs, you may have other people, causes, or organizations you’d like to support. An estate plan helps a couple know exactly what each partner wants with regard to important medical and financial decisions and helps you both protect and pass assets exactly as you intend.
1US Census Bureau. “Family Households Still the Majority.” Gryn, Kreider, Washington and Anderson, May 2023. https://www.census.gov/library/stories/2023/05/family-households-still-the-majority.html
This article is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
SMRU #6006270 exp. 12/5/2025