Unmarried couples face unique challenges in estate planning since the law does not provide the same protections as it does for married couples. Planning ahead ensures that both partners’ assets and wishes are protected in case of unexpected events. Here are key considerations unmarried couples should keep in mind.
Create a comprehensive will
A will is essential for unmarried couples because, without one, state laws may not recognize the surviving partner as a rightful heir. A will allows individuals to specify who receives their assets, including property, bank accounts, and personal belongings. It can also designate guardians for children or pets if applicable.
Establish durable powers of attorney
Durable powers of attorney for finances and healthcare allow partners to make critical decisions on behalf of each other if one becomes incapacitated. Without these documents, partners may face significant legal obstacles when attempting to manage medical or financial matters for their loved ones.
Consider a living trust
A living trust provides flexibility and privacy in managing assets. Unlike a will, it avoids probate, which can be time-consuming and costly. Couples can use a living trust to ensure that assets pass seamlessly to the surviving partner.
Name beneficiaries on accounts
Unmarried partners should ensure that bank accounts, retirement plans, and life insurance policies list the intended partner as the beneficiary. This simple step helps avoid disputes and ensures direct asset transfer upon death.
Review and update plans regularly
Changes in circumstances, such as the acquisition of significant assets or a change in the relationship, require updates to estate plans. Regular reviews ensure that all documents remain valid and reflect current wishes.
Unmarried couples must take proactive steps to protect each other and their shared assets. Proper estate planning provides peace of mind and safeguards the future. Consulting an experienced estate planning attorney can help couples create plans tailored to their unique needs.
