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Single? You Still Need an Estate Plan
If you’re single with no children, an estate plan can help ensure your wishes will be carried out and important decisions remain in trusted hands.
Without a will, state intestacy laws generally determine who inherits assets. While beneficiary designations may control certain accounts, assets without beneficiary designations or joint ownership typically pass according to state law. For singles with no children, state law may call for assets to be distributed to relatives such as parents, siblings, aunts and uncles, or cousins. If no relatives can be located, assets may pass to the state.
For wealthier singles, there are also estate tax considerations. Singles with significant assets should consider estate planning techniques such as trusts to help minimize taxes.
Additionally, powers of attorney can allow someone you trust to handle financial matters and make medical decisions on your behalf if you become incapacitated.
Higher IRS Mileage Rates Take Effect
Due to rising fuel costs, the IRS has increased the 2026 cents-per-mile rates for calculating certain vehicle deductions. Effective July 1, 2026, the standard mileage rate for the business use of a car, SUV, van, pickup truck or panel truck is 76 cents per mile, up from 72.5 cents per mile for the first half of the year.
The revised rate for medical and eligible moving purposes is 23.5 cents per mile, up from 20.5 cents per mile. For charitable driving, the 14 cents per mile rate remains unchanged.
These rates apply to gasoline- and diesel-powered vehicles as well as electric and hybrid ones. To protect your deduction, keep detailed mileage records. Contact the office with questions.
Lending to Family or Friends? Know the Tax Rules
Making a personal loan to a family member or friend can create unexpected tax issues. If the loan carries little or no interest, the IRS might treat all or part of it as a taxable gift under the below-market loan rules.
To pass muster with the IRS, your loan should be backed by a written promissory note that includes the interest rate, a schedule showing dates and amounts for interest and principal payments, and the security or collateral, if any. Charge an interest rate that equals or exceeds the applicable federal rates set by the IRS. They potentially change each month. Contact the office for details.
