Is It Important for Unmarried Couples to Create an Estate Plan?
If you’re in a committed long-term relationship but don’t intend to get married, you may delay creating an estate plan, which may be detrimental in the long term. While the law confers certain benefits and rights to legally married couples, a comprehensive estate plan can help you enjoy the same benefits as married couples in succession planning.
Attorneys from a law firm in California explain that your estate plan can protect you and your partner in several ways:
Inheritance for Your Partner
If you pass on without an estate plan, especially a Will, your estate would be distributed according to intestacy laws, meaning it would be distributed according to state laws. The laws often distribute assets to the deceased’s spouse and children or close relatives only, and your partner may not be recognized, no matter how long you have loved together.
Besides, they would not have rights to sentimental personal property you wish them to have after your demise. Estate planning attorneys in California recommend executing a Will to distribute or gift your estate to your partner to avoid disputes and the risk of having them locked out of the inheritance.
Honoring Your Wishes
You may want certain things handled a certain way after your demise, such as how you would like your body handled or the funeral and burial conducted. Since you won’t be around to ensure your wishes are honored, you can put your partner in charge to ensure things are done as you wish.
Having a Will that provides such instructions can reduce the likelihood of disputes among family members. Incorporating a funeral and burial component in your estate plan and putting your partner in charge can provide a clear path to what should be done.
Without these provisions, the probate court will designate an authority to oversee the distribution of your estate, creating a risk of your partner being left out because you were not legally married.
Authority Over You and Your Assets
An estate plan has provisions for your healthcare plans should you become incapacitated and unable to care for yourself. Under this provision, you can appoint your partner to manage and control your assets while making crucial decisions on your behalf.
Creating a power of attorney that gives your partner the authority to handle your affairs is safer than leaving the decision to the court if you don’t have an estate plan. Estate planning lawyers in the San Fransisco Bay Area can help you create a revocable living trust, appointing yourself as the Trustee and your partner the successor Trustee if you become incapacitated or in the event of death.
You will transfer your assets to the trust and continue to have control over it throughout your lifetime. After your demise, your partner takes over its control without the need to seek judicial approval, potentially eliminating a lengthy, complex, and emotionally draining probate process for your loved ones.
What Are Some Crucial Considerations for Unmarried Couples in Estate Planning?
Unmarried couples face multiple uncertainties regarding property, tax benefits, spousal support, and inheritance. Without marriage or an explicit estate plan, your spouse won’t automatically inherit from you, and they cannot make decisions about your health or finances during a crisis.
SF Bay Area estate planning lawyers say that you can potentially minimize these issues and protect your estate from intestacy succession by taking the following legal steps:
Asset Titling
Asset titling is a simple way to transfer your property to someone, regardless of your relationship. It entails naming your assets in your and your partner’s name in joint ownership, with the right of survivorship.
Doing so enables both of you to manage the asset in your lifetime, and it automatically transfers to the full ownership of the other party upon demise without court involvement. However, there may be tax implications to consider, which your estate planning attorneys can guide you through.
Beneficiary Designations
Review the beneficiary designations of all your accounts at least annually to ensure they reflect the names of the person you wish to inherit them after your demise. If you can’t add your spouse as a joint owner, you can add them as a beneficiary. The approach can ease financial strains if you’re financially interdependent but wish to separate your assets.
Cohabitation Agreement
A cohabitation agreement legal contract between two cohabiting people in a romantic relationship who are not legally married. The agreements are similar to prenuptial agreements but are created through the civil court system, not the family court that requires parties to legally marry.
The agreement’s purpose is to define each party’s rights and responsibilities concerning property, assets, and finances. They enable you to define your own rules and protections, which are crucial in the event of a breakup or death. The contract must be fair and reasonable during its execution and enforcement, as heavily one-sided agreements may not be enforced.
Marvin Actions
Marvin Actions are legal claims your unmarried partner can bring after your relationship ends. California courts recognize that unmarried partners can enforce written or verbal agreements in relation to the distribution of property as married couples can. Since there is no presumption of community property for unmarried couples, Marvin’s Actions can be crucial in protecting your partner’s rights.
A Skilled Estate Planning Lawyer Helping You Navigate Intestacy Laws for Unmarried Couples
Unmarried couples don’t have as robust rights as married couples in relation to property, finances, and inheritance, so they must take proper legal measures to protect themselves. Power of attorney, cohabitation agreements, Marvin Actions, asset title, and beneficiary designations are legal protections you can leverage to protect your and your partner’s rights.
The Singh Law Firm has knowledgeable estate planning lawyers in California. If you’re unmarried, we can look into your case and help you explore the available legal tools to navigate intestacy laws. Call us at 510-901-5375 to schedule a FREE consultation.
