Every so often, you hear of someone who inherits a windfall from an elderly person without children or relatives who had relied on the kindness of neighbors for help.

Those who reap such rewards are usually surprised that the individual left them money or a family heirloom. But such an act undoubtedly was well planned: He or she had made specific bequests in a will or trust.

There are plenty of people out there with no immediate heirs, especially today, with the soaring rate of divorce, smaller family sizes and increasing number of unmarried men and women. Estate planners say it is crucial for them to put explicit instructions in a will or a trust so their money, home, furnishings, artwork and even pets will go to the right people.

"I tell my clients that if they want to be certain that a particular person will get a sum of money or property, they must specify it in their will or set up a trust," said Cynthia Hedge, a lawyer in Michigan City, Ind. "If you die without a will or trust, the state will act for you."

More than 50 percent of Americans die without a will every year, said Richard Campbell, past chairman of the Illinois State Bar Association's Trusts and Estates Section.

If people have no survivors, the proceeds from their estates go to the state, and the assets are distributed by the probate court according to the state's laws of descent. Usually, a notice of unclaimed property is published to give possible relatives an opportunity to respond. If no heirs are found, assets go into the state's general fund. The deceased's possessions are sold, with proceeds going to the fund and any real estate titles transferred to the state.

No reason to wait

When is the right time to start planning your estate?

"Now," Hedge said. "Things can happen to us at any age."

James R. Stack, 64, of Chicago started planning his estate a couple of years ago, when he took early retirement after working for more than 30 years as a development officer for health-care institutions. He is single and has no siblings.

"I decided that I should follow my own advice and create an estate plan," he said, adding that he also had to develop a retirement plan. He opted to go with a professional estate planner he had known through his job.

"He was able to pull together the various pieces that make up my estate, and we developed a coordinated retirement plan. He recommended a lawyer to draw up my will," Stack said.

Making a will was a difficult step, he said, "because it made me face the inevitability of my death. And, as a single person without brothers or sisters, I did not have a younger generation to whom to leave my estate or to act as executor."

His will designates a friend as executor, and he named another person to hold power of attorney for health care.

Experts say it is important to name someone you trust to be an executor or a trustee, or to hold power of attorney.

An individual with power of attorney acts on behalf of a person during his lifetime if that person becomes incapacitated. An executor is someone who acts for a person after his or her death. A trustee acts for someone with a trust during a person's lifetime or after death.

Stack's lawyer set up a revocable living trust to hold whatever is in his estate and to handle its distribution. Such trusts let an individual place most assets into a fund. The individual controls the fund and designates where his assets will go upon his death.

Living revocable trusts can be changed or terminated at any time. Trusts have become increasingly popular because they avoid probate (the process of proving in court that a deceased person's will is genuine and valid, allowing property to be distributed to heirs or designated beneficiaries), which can be costly and time-consuming. With a trust, assets can be distributed immediately.

The cost of setting up a trust can average between $1,000 and $3,000, depending on how complicated it is. Then there are fees for the financial adviser who pulls together the elements in the trusts.

Caution for elderly

Ann Dow Weinberg, 74, a widow with no children or siblings, began to think about estate planning when her husband, Al, became ill a few years before he died.

"A friend nagged me to get my things in order, so I went to a financial planner," she said.

The planner put her in touch with a lawyer who drew up a will and a durable power of attorney for health care.

Her will follows her husband's wishes that certain assets be left to his sister and her children, "but whatever is mine can be directed wherever I want," said Weinberg, who lives in Chicago.

Her will leaves bequests to several friends and such institutions as the Chicago Symphony Orchestra and Fourth Presbyterian Church.

Dennis Belcher, chairman of the American Bar Association's Section of Real Property, Probate and Trust Law, cautions those without heirs to be especially vigilant against people who ingratiate themselves with the elderly to co-opt their money and possessions.

"Fraud sometimes is perpetrated against elderly individuals by unscrupulous lawyers, financial advisers and others," he said. "I've even heard of a doctor who took advantage of an older woman to get to her assets."

This article was written for the Chicago Tribune.

Planning tips

Financial advisers offer the following tips for estate planning:

* Assemble a planning team: attorney, tax professional and investment adviser.

* Determine your objectives so your team can suggest appropriate plans.

* Create a list of your assets.

* Minimize administrative details by consolidating your assets.

* Draft a will and review it periodically.

* Reduce your probate estate with the help of your team.

* Determine your taxable estate and ask if your tax bill can be lowered.

* Take advantage of estate-tax exemptions. Currently, up to $1 million in assets can be transferred free of federal estate taxes upon a person's death.

* Hope for the best, but plan for the worst. A durable power of attorney allows you to designate who will manage your financial affairs if you become incapacitated. Also consider a health-care directive.

* Protect your assets with life insurance, which can help to pay taxes / expenses when settling your estate.