DINK Dilemmas: How Can I Leave a Legacy?

Affectionately referred to as DINKs (dual income, no kids) or SINKs (single income, no kids), the number of people who are deciding not to have children has steadily risen over the past decade.

So what’s a DINK to do with the $237,482 they would have spent on raising a child?

In this blog series, we rounded up several frequently asked financial planning questions from DINKs & SINKs and requested independent Avantax Financial Professionals and Home Office team members to weigh in. Visit our main blog page to view the other articles in this series!

Q: Even though I won’t have children to inherit my assets, I want to leave a legacy when I pass away. What legacy and estate planning details should I be aware of that are unique to child-free individuals? 

• Pardis Ferdosi, Financial Planning Consultant; Avantax: As a child-free individual, you have the freedom to design a legacy that’s about your passions, values, and the impact you want to leave behind.
  
  Start with an estate plan. Since you don’t have kids to inherit by default, be clear about who (or what organization) gets your assets. It could be family, friends, or that animal rescue you can’t stop donating to. A trust can also keep things smooth and tax efficient.
  
  Philanthropy? Go big! Set up a donor-advised fund, create scholarships or research grants in your name. Your legacy could send future astronauts to space or save the rainforest. Imagine: future generations thanking you for their dream job or being able to live on Mars. It’s legacy magic!
  
  Pick decision-makers wisely. No kids mean no “built-in” executor or power of attorney, so choose a trusted friend or professional who can handle the job without turning it into a Netflix drama.
  
  Don’t forget about tax implications! Work with a tax-intelligent Financial Professional to reduce estate taxes and maximize your legacy’s impact. Be sure to check in on your plan regularly. Life changes, so your legacy should evolve with it.
   
• Caroline Piehl, CFP®, Independent Avantax Financial Advisor; TimeWise Financial: Many financial planning conversations focus on what you want your money to do for you while you are living. Discussing what you want your money to do once you are gone is an equally important conversation to have to ensure your money goes where you want it to when you are gone – regardless of if you have children or not.
  
  This conversation starts by getting clarity on whether you want your legacy to be passed on to a person (a relative, family member, etc.), a cause (a charity, a church, a University, etc.) or both. If your net worth is close to the lifetime estate exemption ($13.61 million as of 2024), you’ll want to consider developing a charitable giving strategy to help avoid being subject to estate tax.
  
  Once you have this mapped out, it’s crucial that your accounts and estate documents reflect your wishes. This includes updating account and policy beneficiaries, updating your will and, in some cases, setting up a trust.
  
  For all clients, especially single clients, getting a financial POA (power of attorney) on file is incredibly important. Consider this: If you were incapacitated, who would legally be allowed to make financial decisions on your behalf?
   
• Emily Millsap, CFP®, Manager of Financial Planning; Avantax: I’ve noticed DINKs/SINKs often overlook estate planning – and that can be a big mistake.  With no second generation to assume the role of power of attorney or executor, you’ll need to be especially strategic about the people or professionals you choose to serve in those capacities. Additionally, have a solid plan about how and where to transfer your wealth upon your death. Some child-free individuals choose to leave their assets to nieces/nephews or other family members, but you could also consider passing assets to important individuals outside of your bloodline –close friends, neighbors who’ve helped you out, etc. 
   
• Amanda Young, CFP®, Financial Planning Analyst; Avantax: Here’s a question to consider: Do you want to actually leave money after your death or do you want the last check to bounce? Something that is unique to DINKs/SINKs is what I refer to as “variability in giving while you are living.” Because your disposable income is likely higher, you have the option to not only be very active in giving, but to witness the positive impact of your gifts while you’re still alive. 
  
  Because you don’t have direct heirs to pass your estate to, it will be extremely important to be specific, be direct and tell anyone who might need to know what you wish to happen to your estate. Personally, I wouldn’t want a “long-lost family member” to surface and fight in probate for my assets, which is why I regularly review my estate planning details.