Beyond Parenting: Managing Wealth Transfer for Couples Without Children

When a couple does not have a child, financial planning does become less complicated because there are no expenses pertaining to kids and further, there is no need to plan for the future of kids.

For such couples. building a solid retirement fund is crucial. And that should be easier, without any financial commitments towards children. One also needs to plan for long-term health care through insurance and through building a corpus as there will be no children to provide support. 

However, succession planning becomes tricky when you don’t have children. There could be various reasons for not having a child. Marriage as an institution has become more challenging in many countries and also amongst the current generation. People prefer to stay single than enter into a wedding which demands a bigger commitment.  Many couples willingly decide not to have babies as a matter of personal choice. On the other, some couples are not able to produce children due to falling fertility rates. 

We expect that when we are not around, the wealth will pass on to our kids. However, in case one does not have any kids, wealth distribution post their demise, should be well thought out before the actual event plays out. In case there is no will, the wealth will be distributed based on laws which may differ based on religion. 

“People should carefully list out their preferences, passions, and their philanthropic needs. Once they have done this, they should carefully draft a registered will and appoint an executor to ensure that the wealth is distributed exactly as per your will. Many people create trusts that handle wealth across channels and geographies by appointing trustees and distributing the wealth to the beneficiaries,” says Gaurav Goel, entrepreneur, Sebi registered investment advisor.

The most important thing is to ensure wealth is passed on to the intended beneficiaries as smoothly as possible. “In many cases, where children are not the beneficiaries, the recipients are not aware of the windfall and sometimes it becomes difficult to trace them or the process of transfer of wealth to them is cumbersome. Hence executors or trustees must be carefully identified,” says Goel.

Thus, for childless couples, financial planning focuses on securing retirement, and health care, and ensuring smooth succession. A registered will, executor, or trust is crucial for intentional and efficient wealth distribution.