Unmarried couples often face unique challenges when it comes to estate planning. Without the legal protections marriage provides, unmarried partners may not automatically inherit each other’s assets or have a say in important medical or financial decisions. Estate planning can provide the legal tools to protect your partner, ensuring their financial security and involvement in your care if the unexpected happens. Here’s how unmarried couples can secure each other’s future through thoughtful estate planning.
For married couples, inheritance laws and spousal rights often automatically protect a surviving spouse. Unmarried partners, however, are not granted these protections by default. Without a clear estate plan, a partner may be left out of important decisions or face legal battles to claim assets.
Creating an estate plan ensures that your partner has access to your assets and authority in medical and financial matters. Estate planning allows you to formalize your relationship’s importance in a legally binding way, regardless of marital status.
A Will is the foundation of any estate plan and is especially critical for unmarried couples. By specifying your partner as a beneficiary, you ensure that they receive the assets you want them to inherit. State intestacy laws apply without a Will, meaning assets pass to your next of kin—excluding your partner entirely.
In addition to outlining inheritance, your Will can specify other key details, such as guardianship of children or pets, providing further legal clarity.
A Durable Financial Power of Attorney (POA) allows your partner to make financial and legal decisions on your behalf if you are unable to do so for yourself. This document is essential for unmarried couples, since partners are not automatically granted financial authority like spouses. A POA allows your partner to manage your finances, access accounts and handle legal matters, ensuring that they can support your interests during difficult times.
A Durable Healthcare Power of Attorney and Advance Directive/Living Will enable your partner to make medical decisions on your behalf if you cannot do so for yourself. Without these documents, an unmarried partner may have no legal say in your health care and may, in some instances, be precluded from even seeing you in the hospital. By designating your partner as your healthcare agent, you empower them to make decisions that align with your preferences, such as treatment options or end-of-life care. An Advance Directive/Living Will further clarifies your medical wishes when you are permanently unconscious or in an end-stage medical condition, reducing the burden on your partner in critical moments.
Ensure that your partner is listed as a beneficiary on key accounts, such as retirement plans, life insurance policies and bank accounts. Beneficiary designations take precedence over Wills, meaning these assets pass directly to the named person, bypassing probate. Regularly reviewing and updating these designations is essential to avoid potential conflicts or unintended beneficiaries.
For unmarried couples, jointly owning property can provide added security and simplify the transfer process. Options include:
Discussing these options with an estate planning professional can help you determine the best arrangement for property ownership based on your needs and goals.
Navigating estate planning as an unmarried couple requires special considerations to protect your partner’s rights and security. Our law firm provides tailored estate planning solutions, including drafting Wills, Trusts and financial and health care documents that honor your relationship. By working with us, you can create a comprehensive plan to secure your partner’s future and ensure that your wishes are respected.
Reference: J.P. Morgan (Sept. 12, 2024) “Retirement and Estate Planning for Unmarried Couples”
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