When living together as a loving and committed couple, it’s not uncommon to put off thinking about the difficult topics of wills, trusts and end-of-life plans. However, it’s essential to have these plans in place to ensure your partner is supported should one of you pass away. Unmarried couples, in particular, face unique challenges when it comes to estate planning. This article delves into the importance of estate planning and outlines the legal rights of unmarried partners in the absence of an estate plan.
What is Estate Planning and Why Do Unmarried Couples Need it?
Defining Estate Planning
Estate planning involves making legal arrangements to ensure an individual’s assets and property are handled according to their wishes in the event they become incapacitated or pass away. Estate planning includes provisions for the care of any children or dependents, as well as the allocation of the individual’s assets and property after they die.
Importance of Estate Planning for Unmarried Couples
State law typically recognizes legal protections for married couples, which means the surviving partner is often entitled to a significant portion of the estate. However, in the absence of an estate plan, unmarried partners could face a great deal of uncertainty and even legal battles. An estate plan ensures the surviving partner is protected and receives the support they need after the death of their loved one.
Legal Rights of Unmarried Partners in the Absence of Estate Planning
When a partner in an unmarried relationship passes away without leaving behind a will, their estate goes through the process of intestacy. Intestacy involves the distribution of the estate according to state law, which may not align with the surviving partner’s wishes or needs. Without an estate plan, an unmarried partner could be left with nothing, even if they’ve lived together for years.
Understanding Wills and Trusts for Unmarried Couples
Differences Between a Will and a Trust
A will is a legal document that outlines an individual’s wishes regarding the distribution of their assets and property after they pass away. A trust, on the other hand, involves transferring assets into a trust fund to be managed by a trustee for the benefit of the beneficiaries.
Advantages and Disadvantages of Wills and Trusts for Unmarried Couples
A will is a great starting point for unmarried couples who want to ensure that their partner receives their assets in the event of their death. However, wills can be subject to probate, which can delay the process of distributing assets and be costly. Trusts, in contrast, can provide greater flexibility and control over the distribution of assets. However, they can be more complex to set up, and there can be potential tax implications.
Creating an Estate Plan that Fits Your Unique Situation
Each couple’s situation is unique, and an estate planning attorney can help you determine the best course of action. Whether that means setting up a will, trust, or other legal documents such as a power of attorney or beneficiary designations, an attorney can help ensure your partner receives the support they need in the event of your death.
Know Your Legal Rights When Your Partner Dies
Problems That Can Arise if Your Partner Dies Without a Will
If your partner dies without leaving behind a valid will or estate plan, the distribution of their assets will be subject to state law. Depending on the state you live in, this could mean that your partner’s assets will pass to their legal heirs, which may not include you. This situation can be devastating, especially if you’ve been together for a significant amount of time.
Intestate Succession Laws and Unmarried Couples
Intestate succession laws vary by state but generally prioritize legal heirs such as children or siblings. If you’re an unmarried partner, you may not be entitled to any of your partner’s assets in the absence of an estate plan. This is one of the reasons why it’s so essential for unmarried couples to have an estate plan in place to ensure their partner is protected.
Legal Recourse Available for Unmarried Partners
Fortunately, there are some legal protections available for unmarried partners in the absence of an estate plan. This may include arguing that the couple was in a common-law marriage, which is recognized in some states. Alternatively, an unmarried partner could potentially make a claim on the estate as an heir, depending on state law.
Understanding Common Law Marriage and Legal Protections for Unmarried Partners
Legal Rights of Common Law Marriage
Common law marriage refers to a relationship between two individuals who present themselves as married and are recognized as such by the state, even if they don’t have a formal marriage license. Some states allow for common law marriage, and in these states, the surviving partner is entitled to the same legal protections as a spouse. However, it’s important to note that not all states recognize common law marriage.
Legal Protections Available for Unmarried Partners
In addition to common law marriage, some states offer other legal protections for unmarried couples. These may include domestic partnership laws, which provide protections for couples who live together but aren’t legally married. Unmarried partners may also be eligible for survivor benefits from Social Security and life insurance policies.
Recognized Legal Relationships for Unmarried Couples
In some cases, unmarried couples may choose to create a recognized legal relationship, such as a domestic partnership or civil union, which can provide additional legal protections. These relationships differ by state, so it’s important to check with an attorney to determine eligibility and requirements.
Joint Ownership, Beneficiary Designations, and Retirement Accounts
Joint Ownership and Its Implications for Unmarried Couples
Joint ownership can be a practical way for unmarried couples to hold shared assets such as property or bank accounts. Joint ownership means that both parties have equal ownership of the asset and have the right to make decisions regarding its use or sale. However, joint ownership can also have implications in the event that one partner passes away, as the asset will automatically transfer to the surviving partner.
The Importance of Beneficiary Designations for Unmarried Partners
Beneficiary designations are another critical aspect of estate planning for unmarried couples. By designating your partner as the beneficiary of your retirement accounts or life insurance policies, you can ensure that they receive the relevant benefits after you pass away. Without these designations, your assets could go through probate, which could be lengthy and expensive.
Legal Protections for Unmarried Partners in Retirement Accounts
Retirement accounts such as IRAs or 401(k)s are subject to specific rules and regulations, and it’s important to understand how these will apply to an unmarried couple. For example, if a partner is designated as the beneficiary of a retirement account, they may be entitled to stretch distributions over their lifetime, allowing them to receive benefits over a more extended period.
Ultimately, the key takeaway for unmarried couples is that estate planning is essential. Whether you choose to set up a will, trust or other legal documents, it’s important to ensure your partner receives the support they need in the event of your death. Speak to an estate planning attorney to ensure that your partner is protected and that your wishes are carried out according to your unique situation.
