What estate planning steps should unmarried couples take?

On Behalf of | Oct 10, 2024 | Estate Planning |

Estate planning plays a crucial role in protecting loved ones and assets. Unmarried couples need to pay attention because laws favor married couples, which can leave an unmarried partner without protections. Taking proactive steps can help ensure that each partner’s interests remain safeguarded.

Lack of automatic inheritance rights

Unmarried partners lack automatic inheritance rights. Without a will or trust, a partner may receive nothing. Proper estate planning ensures asset distribution follows personal wishes and protects both partners in the event of death.

Importance of power of attorney

Unmarried couples should establish power of attorney documents to allow partners to make healthcare and financial decisions for each other. Without these, partners have no legal standing to make critical decisions. This legal authorization prevents outsiders from making decisions that may go against the incapacitated partner’s wishes.

Creating a will or trust

Drafting a will or setting up a trust ensures assets transfer to the intended partner. A will specifies wishes, while a trust offers privacy and avoids probate. These tools give unmarried partners control over how their assets get distributed and can help avoid lengthy legal processes.

Beneficiary designations and joint accounts

Unmarried couples should review beneficiary designations on retirement accounts, life insurance, and other assets. Naming a partner as the beneficiary ensures they receive these assets. Creating joint accounts can also streamline asset distribution, making the process smoother and reducing delays.

Addressing potential family disputes

Family disputes can arise when unmarried partners inherit assets. Clear estate planning documents reduce the chance of disputes and protect the partner’s rights. Including detailed instructions prevents misunderstandings and ensures that a partner’s intentions are honored.

Importance of seeking professional advice

Estate planning for unmarried couples involves complex decisions. Consulting an experienced estate planning attorney helps ensure legal documents are correct and partners’ wishes are honored, offering peace of mind.

Creating a comprehensive estate plan provides peace of mind and protects both partners’ interests.