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Mackay Dressler Law Firm

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Estate Planning for Unmarried Couples

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If you are in a committed relationship but have decided to remain an unmarried couple, you still need to plan to protect your assets for yourselves and your children. We know that complexities can pop up suddenly, so it is never too early to start a shared estate plan.

Because unmarried couples do not automatically receive spousal rights, there is a specific legal approach that needs to be taken that involves creating a will, establishing trusts and designating the surviving partner as the beneficiary on all financial accounts and insurance policies. It is highly recommended that you seek the advice of an experienced estate planning attorney to create all formal legal documents for you.

Here are some important steps you can take to protect your unmarried partner in the event of your passing or catastrophic illness:

  • Set up a durable power of attorney — This document gives your permission for your partner to handle all financial and legal decisions on your behalf if you are unable to do so. This document clears up any ambiguity in terms of who the decision-maker may be.
  • Create a living will with a proxy — With this document in place, your partner is granted permission to provide directions on your health care wishes in the event you need a medical intervention. Naming your partner as your proxy gives them the authority to discuss your medical care with your health care providers. Without this in place, a medical professional can turn to your next of kin, who may not be aware of your wishes.
  • Establish joint ownership of property — Clearly defining what an unmarried partner’s rights are to shared property after the death of the other partner is crucial. For example, if you own a home together, you will need to establish joint tenancy so that the surviving partner can continue to own the residence. This means that the property automatically falls to the surviving partner without going through probate.
  • Have a cohabitation agreement in place — Similar to a prenup, this legal document details the responsibilities and rights between an unmarried couple if the relationship ends. Some areas to be agreed upon are how property and debt will be distributed, who will care for any minor children, and what the ongoing financial support for children or a partner will be. You may want to purchase life insurance to make sure that the surviving partner will be financially secure.
  • Name your partner as your retirement beneficiary — If you want your retirement account to be handed over to your partner, then you must designate that person as your beneficiary. If you do not take this step, you run the risk of having the funds enter as part of the estate and go through probate.
  • Include your partner as the executor of your will — By taking this step, you are assured that your final wishes will be carried out as you have specified. The executor should be a responsible individual close to you. They should be someone you can trust to distribute the contents of your will as you see fit.

For your peace of mind, discuss your estate planning goals with your partner and retain a qualified estate planning attorney to handle all the legal requirements. A plan is essential to ensure that your partner and family are protected. To get in touch with our firm to take the next steps on your estate planning journey, join an upcoming webinar or give us a call at 707-769-9975.

Miranda Dressler
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