Unmarried couples often face unique challenges when it comes to estate planning. Without the legal protections marriage provides, 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.
Why Estate Planning Matters for Unmarried Couples
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.
Essential Estate Planning Tools for Unmarried Couples
Last Will and Testament
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 could pass to your next of kin—potentially 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.
Living Trust
A living trust provides an additional layer of security by allowing assets to transfer directly to your partner without going through probate. In a trust, you can designate your partner as a beneficiary, and the assets within the trust pass to them automatically upon your death. Trusts offer privacy and often streamline the inheritance process, allowing your partner quicker access to assets without the delays and public exposure of probate.
Durable Power of Attorney
A durable power of attorney (POA) allows your partner to make financial and legal decisions on your behalf, if you become incapacitated. 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.
Healthcare Proxy and Advance Directive
A healthcare proxy and advance directive enable your partner to make medical decisions on your behalf if you cannot do so. Without these documents, an unmarried partner may have no legal say in your healthcare. By designating your partner as your healthcare proxy, you empower them to make decisions that align with your preferences, such as treatment options or end-of-life care. An advance directive further clarifies your medical wishes, reducing the burden on your partner in critical moments.
Beneficiary Designations
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.
Property Ownership Options
For unmarried couples, jointly owning property can provide added security and simplify the transfer process. Options include:
- Joint Tenancy with Right of Survivorship (JTWROS): This ownership structure automatically transfers property ownership to the surviving partner upon one partner’s death, bypassing probate.
- Tenancy in Common: Each partner owns a defined share of the property, which can be left to any beneficiary. This option provides flexibility but requires additional planning to ensure that your partner inherits your share.
Discussing these options with an estate planning professional can help you determine the best arrangement for property ownership based on your needs and goals.
How Estate Planning Firm Can Help
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 healthcare proxies 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.
Key Takeaways
- A will is essential for unmarried partners: Naming your partner as a beneficiary in your will ensures that they inherit your assets.
- Trusts provide privacy and avoid probate: A living trust allows assets to pass directly to your partner without delays.
- Power of attorney grants financial authority: A POA ensures that your partner can handle financial matters if you’re incapacitated.
- Healthcare proxies safeguard medical decisions: Designating your partner as a proxy ensures that they can make critical health choices for you.
To learn more about estate planning in the East Valley, Gilbert, Mesa and Queen Creek, schedule your free consultation with Attorney Jake Carlson by using one of the links above.
Reference: J.P. Morgan (Sept. 12, 2024) “Retirement and Estate Planning for Unmarried Couples”
