Estate planning is often associated with married couples but can be equally important for unmarried partners. Unlike married couples, who benefit from certain automatic legal protections, unmarried partners do not have the same rights in matters such as inheritance, medical decisions, and fiscal management. Proper estate planning allows unmarried couples to safeguard their rights and have their wishes honored.
Why Is Estate Planning Important for Unmarried Couples?
Unmarried couples do not have the same legal protections as married couples. In many jurisdictions, partners who are not legally married do not automatically inherit each other’s assets or have the right to make medical or financial decisions on each other’s behalf. Without a comprehensive estate plan, an unmarried partner may find themselves excluded from important decisions or denied inheritance rights.
What Documents Are Needed for Estate Planning?
Several key documents are needed to establish a comprehensive estate plan for unmarried couples:
- Last Will and Testament: Specifies asset distribution, including an unmarried partner.
- Living Trust: Manages assets in trust, avoids probate, and names a partner as beneficiary.
- Durable Power of Attorney: Appoints a partner for financial decisions if incapacitated.
- Healthcare Power of Attorney: Authorizes a partner to make medical decisions.
- Advance Healthcare Directive: Details medical treatment preferences to prevent disputes.
- Beneficiary Designations: Specifies the people or organizations to which the assets will be distributed.
Can Unmarried Partners Inherit Property Without a Will?
In most jurisdictions, unmarried partners do not have the right to inherit property automatically if there is no will. Without a will, a deceased person’s estate is typically distributed according to intestate succession laws, which often prioritize biological family members like children, parents, or siblings. An unmarried partner may not receive any portion of the estate, regardless of the length of the relationship or shared assets.
A will lets you specify that your partner should inherit specific assets or a portion of the estate. If there is no will, an unmarried partner may need to take legal action to try to claim a share of the estate, which can be time-consuming, costly, and emotionally taxing.
What Steps Should Unmarried Couples Take to Plan Their Estate?
Consider taking the following steps to create a thorough estate plan:
- Consult with an attorney experienced in estate planning for unmarried couples to understand the specific legal considerations in your jurisdiction.
- Discuss and agree on how assets should be distributed and who should make medical and financial decisions if one partner becomes incapacitated.
- Prepare and execute all relevant legal documents, including wills, living trusts, durable power of attorney, healthcare power of attorney, and advance healthcare directives.
- Regularly review and update beneficiary designations on financial accounts, insurance policies, and retirement plans to reflect current wishes.
- Reassess the estate plan periodically, especially after significant life events like purchasing property, changes in health status, or the birth of a child.
What Happens if One Partner Owns More Property Than the Other?
If one partner owns significantly more property than the other, creating a living trust or entering into a cohabitation agreement may be beneficial. A living trust can manage and distribute assets according to both partners’ wishes while avoiding probate. A cohabitation agreement outlines each partner’s rights and responsibilities regarding jointly owned property, financial contributions, and other matters.
The Delaware County Wills and Estate Lawyers at Eckell Sparks Help Couples Secure Their Financial Futures
Few things are as important as planning for your financial future, whether you are married or not. A skilled Delaware County wills and estate lawyer at Eckell, Sparks, Levy, Auerbach, Monte, Sloane, Matthews & Auslander, P.C. can help you. Call our Media and West Chester, Pennsylvania offices at 610-565-3701 or complete our online form for more information. We serve clients in Delaware County, Chester County, and Montgomery County.