Webinar Replay

Click Here to Download Summary Below

A Deep Dive into a Unique Childfree Trust Program 

Jay Zigmont, CFP®, introduced the Childfree Trust program, a specialized estate planning and fiduciary solution designed to address the unique needs of individuals without children. The session focused on a growing and often underserved population and highlighted structural gaps in traditional estate planning frameworks that assume the presence of family decision-makers. 

1. The Growing Child-Free Population and Planning Gap

Approximately 25% of U.S. adults are child-free or permanently childless, and the percentage is increasing—particularly among younger cohorts. Among adults ages 18–49 without children, a significant portion report they do not plan to have any.

Despite this growth, estate planning adoption remains low:

• Less than 20% of child-free individuals have a will
• Less than 30% have any estate planning documents
• Nearly half are willing to pay for professional fiduciary services

This creates a significant planning gap, driven largely by a central issue the presenter called the “fiduciary void.”

2. The Fiduciary Void: Core Planning Challenge

Traditional estate planning assumes the presence of:

• Children
• Close family members
• Trusted heirs to act as decision-makers

For child-free individuals, this assumption often fails.

Key roles that must be filled include:

• Medical Power of Attorney
• Financial Power of Attorney
• Executor
• Trustee

Without clear candidates, clients face difficult choices such as:

• Naming distant or unfamiliar relatives
• Relying on friends with similar age or limitations
• Leaving decisions to the court system

3. Risks of Inadequate Planning

The session emphasized several real-world risks when estate planning is incomplete:

Court Intervention

Without designated decision-makers:

• Courts may appoint a guardian or conservator
• Individuals lose control over financial and medical decisions

Guardianship/conservatorship overview:
https://www.usa.gov/legal-guardianship

State Control of Assets

If no will exists:

• Assets may pass according to state intestacy laws
• In some cases, unclaimed assets may eventually revert to the state

Unclaimed property overview:
https://www.usa.gov/unclaimed-money

Elder Abuse Risk

Using distant or unqualified individuals as fiduciaries increases the risk of exploitation.

AARP research indicates approximately 1 in 10 older adults experience elder abuse.

AARP elder abuse statistics:
https://www.aarp.org/research/topics/care/info-2017/elder-abuse-prevalence.html

4. Limitations of Existing Solutions

Zigmont outlined why current options often fail child-free clients:

Family or Friends

• May lack capability or willingness
• Often same age (creating timing issues)
• Can introduce conflicts or risk

Professional Fiduciaries

• Limited availability (e.g., licensed primarily in certain states like California and Arizona)
• Often expensive (e.g., $30,000 annual minimums in some cases)
• Typically individuals rather than scalable systems

Trust Companies

• Focus on asset management—not personal decision-making
• Often require minimum asset levels
• May terminate relationships if assets decline

Online Estate Planning Tools

• Provide documents but do not solve the “who makes decisions” problem
• Not tailored to child-free planning needs

5. The Childfree Trust Program Structure

The Childfree Trust program was developed as a comprehensive solution combining legal documentation, fiduciary services, and ongoing support.

Core Components

1. Legal Document Creation

The program generates:

• Medical Power of Attorney
• Financial Power of Attorney
• Trust
• Will

Each set of documents is state-specific (all 50 states supported).

2. Built-In Professional Fiduciary

The program can serve as:

• Power of Attorney
• Executor
• Trustee

Clients may:

• Name individuals first (e.g., spouse)
• Use the program as a backup or primary fiduciary

3. Pet Trust Integration

A pet trust is included by default, reflecting that a large percentage of child-free individuals have pets.

Pet trust overview:
https://www.aspca.org/pet-care/pet-planning/pet-trust-primer

4. Care Documents (Critical Innovation)

Beyond legal documents, the program creates living care documents, including:

• Medical history
• Care preferences
• Funeral or memorial wishes
• Pet care instructions
• Financial and personal details

These documents are continuously updated, ensuring decision-makers have real-time guidance.

6. Emergency and Ongoing Fiduciary Services

A key differentiator is the 24/7 emergency response system.

In an Emergency:

• The service is contacted (e.g., hospital admission)
• Power of attorney is activated
• Documentation is provided to medical providers
• Decision-making begins immediately

Long-Term Care Scenarios:

• Activation may require confirmation from two medical professionals
• The service coordinates care through third parties (e.g., geriatric care managers)
• Assets may be transitioned into trust for easier management

7. Directed Trust Structure

The program uses a directed trust model, allowing:

• Advisors to continue managing investments
• Assets to remain at existing custodians
• The trust company to oversee fiduciary compliance

Directed trust explanation:
https://www.investopedia.com/terms/d/directed-trust.asp

8. Pricing Model

The program uses a hybrid pricing structure:

• $999 annual membership fee
• $275/hour for fiduciary services
• Additional trust administration costs (e.g., basis point fee for accounting)

Notably:

• Pricing increases are tied to Social Security cost-of-living adjustments
• Clients who run out of assets after a minimum period may continue receiving decision-making services

Social Security COLA explanation:
https://www.ssa.gov/cola/

9. Planning Beyond Death: Focus on Incapacity and Long-Term Care

A major theme was that estate planning for child-free clients is not primarily about inheritance—it is about control during life.

Key considerations include:

• Who makes decisions during incapacity
• Long-term care planning (often ~$500,000 self-funding target)
• Avoiding reliance on courts or unqualified individuals

Long-term care cost overview:
https://acl.gov/ltc/basic-needs/how-much-care-will-you-need

10. Advisor Opportunities and Responsibilities

The session emphasized the role of advisors in addressing this gap.

Advisors should:

• Identify child-free clients proactively
• Initiate estate planning discussions early
• Help clients determine beneficiaries and legacy goals
• Facilitate long-term care planning conversations
• Guide clients through decision-making processes

11. Behavioral and Practical Challenges

Advisors may encounter:

• Clients delaying planning due to uncertainty about beneficiaries
• Difficulty identifying trusted decision-makers
• Emotional resistance to discussing incapacity
• Failure to complete or sign documents

A key takeaway: imperfect planning is better than no planning—getting documents in place early is critical.

12. Scalability and Industry Gap

The presenter highlighted the scale of the unmet need:

• ~15 million child-free individuals over age 55
• Limited scalable solutions currently exist
• The program aims to serve 100,000–200,000 clients within five years

Key Takeaways

• Child-free individuals face a unique fiduciary gap not addressed by traditional estate planning.
• The greatest risk is not tax inefficiency—but lack of decision-makers during incapacity.
• Without planning, outcomes may include court control, elder abuse risk, or state asset distribution.
• The Childfree Trust model integrates documents, fiduciary services, and real-time care planning.
• Advisors play a critical role in identifying and solving this growing planning need.

External Reference Sources

Guardianship and Conservatorship Overview
https://www.usa.gov/legal-guardianship

Unclaimed Property and State Asset Processes
https://www.usa.gov/unclaimed-money

AARP Elder Abuse Statistics
https://www.aarp.org/research/topics/care/info-2017/elder-abuse-prevalence.html

Pet Trust Overview
https://www.aspca.org/pet-care/pet-planning/pet-trust-primer

Directed Trust Explanation
https://www.investopedia.com/terms/d/directed-trust.asp

Social Security Cost-of-Living Adjustments
https://www.ssa.gov/cola/

Long-Term Care Cost Overview
https://acl.gov/ltc/basic-needs/how-much-care-will-you-need