Child-Free and a Homeowner? Here’s How To Protect Your Estate

Over the course of our lives, we are all forming our estates—through our savings, investments, and the homes we live in. For homeowners, their property often represents the largest asset they’ll ever own, making it essential to plan carefully for what happens to it. 

Those who are child-free or childless are no exception. Whether you’ve chosen a life without kids or haven’t decided yet, you may not have obvious heirs to inherit your home or other investments. Without clear instructions for what to do with them if you become incapacitated or die, these major assets can create complications, inefficiencies, or unnecessary costs that drain your estate.

Estate planning isn’t just for the wealthy or those with big families—it’s for anyone who wants to make sure they know what will happen to the things they’ve spent their life building. 

Why is child-free estate planning important?

An estate plan ensures your assets go where you want them to go when you are gone. Without one, you die “intestate,” which means the state decides who gets what.

Suddenly, your longtime home is at risk of being sold, given to someone you wouldn’t have chosen, or caught up in a lengthy legal process.

“Your estate plan is about more than what happens to your stuff after you die,” says Jay Zigmont, the founder of Childfree Trust. “Your estate plan also appoints someone to serve as your medical and financial power of attorney in case you are disabled and cannot make decisions for yourself. If you don't have kids or a ready next-of-kin, the government will be forced to step in and make decisions for you, which is something no one wants.”

For people with children or a spouse, inheritance often defaults to those close relatives. But for child-free people, there’s no clear next of kin, which means courts, health care providers, and financial institutions may be left to fill in the gaps.

With a plan, you decide who makes decisions for you and where your home, savings, and personal treasures go. However you structure it, estate planning is ultimately about choice—and taking the time to put those choices on paper is the first step.

Making a plan for estate planning

For child-free people, estate planning often looks a little different from that for those with children. Since there aren’t kids in line to inherit, the focus isn’t usually on passing down generational wealth. Instead, it’s about deciding what kind of impact you want to leave behind.

The first step is usually a will—your road map for who gets what. If you own a home, this is especially important. You might leave the home to a sibling, niece, or nephew so it stays in the family. Or maybe you’d rather pass it on to a close friend, or sell it and direct the proceeds toward a charity, scholarship, or even your own long-term care. Whatever you decide, writing it down makes sure it actually happens.

Next, you’ll want to set up a power of attorney for finances and health care, plus a living will that spells out your medical preferences. These documents make sure someone you trust steps in if you can’t make decisions yourself. Many child-free people choose siblings, close friends, or even professional fiduciaries for this role.

From there, you can get more specific—like creating a trust for more control, or setting aside money for pets or charitable causes.

Getting the most out of your estate

Estate planning isn’t just about what happens after you’re gone—it can also be about making the most of your assets while you’re still alive. Financial planner Aaron Brask, of Aaron Brask Capital, notes that, for many retirees, a large share of wealth is tied up in their home.

“Without utilizing more complicated financial products, retirees will not be able to access their equity during their retirement,” says Brask. “I recommend they at least consider the idea of selling their home and renting.”

Due to the IRS’ home sale exclusion, the first $250,000 of gains from selling a primary residence is tax-free—making it one of the most efficient ways to turn home equity into cash.

For example, a child-free homeowner who sells a longtime family home might downsize to a smaller apartment, using the unlocked equity to travel, support a favorite charity, or even cover long-term care costs. That way, their estate is put to work, improving their quality of life today.

Taxes also play a big role in deciding how to pass on assets. Pre-tax accounts such as an IRA or a 401(k) are usually best left to charities, since the organization can use 100% of the funds without paying taxes. By contrast, family or friends who inherit those accounts would owe taxes on distributions. Meanwhile, assets like real estate, stocks, and bonds held in a taxable account often receive a “step-up in basis,” which can minimize or even eliminate capital gains taxes for heirs.

Brask adds that giving while you’re alive often makes sense financially and emotionally. 

“I want everyone to enjoy the fruits of their hard work and savings,” he says. “When it comes to giving, many people would enjoy seeing how their gifts actually benefit the recipients. If they leave them to beneficiaries after they pass, there isn’t even a chance to hear a ‘thank you.’”

You can always change your plan

Your estate plan isn’t set in stone. Estate planning can and should evolve alongside your life. Buying a new home, entering a new relationship, or shifting your priorities—whether that involves children or not—are all reasons to revisit the plan and make updates.

“You can update your estate plan at any time, so get your first plan in place ASAP and update as needed,” says Zigmont. “The key is to work with a certified financial planner who knows how your plan changes because you are child-free.”

For example, some tax strategies popular with traditional heirs might have other ramifications for child-free individuals. Investment real estate can be tricky if you move often or don’t plan to leave the property to the next generation. A 1031 exchange lets investors defer capital gains taxes when they sell a property—but if you eventually sell without an heir to pass it on to, all those deferred taxes come due at once, potentially creating a big, unexpected tax bill. 

These considerations highlight why child-free estate planning requires a different approach from family-focused strategies. What works for parents passing wealth to children may not optimize your specific goals and circumstances.

Thus, ultimately, being child-free doesn’t mean ignoring your estate—it means being intentional about it. By creating and updating a plan, you make sure your home, assets, and legacy reflect your values and choices, both now and in the future.