Estate planning is an important consideration for all individuals, regardless of their marital status. However, the legal concerns can be different for those living together instead of getting married. These individuals need to understand that just because they are not legally married does not mean they do not need an estate plan. Without one, the distribution of assets and decision-making authority in the event of death or incapacity may be subject to state laws and could lead to unexpected results. Unmarried couples need to consult an attorney to create a comprehensive estate plan that considers their unique needs and circumstances. Here is the importance of estate plan considerations if you’re living together instead of getting married
1. Distribution of Assets
The distribution of assets is one of the most important considerations in an estate plan. Without a valid will or trust in place, state laws will determine how assets are distributed upon the death of one partner. This can lead to unintended consequences, such as assets going to individuals or organizations that the surviving partner did not intend. By creating an estate plan, unmarried couples can ensure that their assets are distributed according to their wishes rather than relying on state laws. This can provide peace of mind and protect their loved ones from legal battles.
2. Decision-Making Authority
Decision-making authority is another important consideration in an estate plan for individuals living together instead of getting married. Without a valid power of attorney or advanced healthcare directive, the state may appoint someone to make decisions on behalf of the incapacitated partner. This person may not be the individual the incapacitated partner would have chosen and may not have the same values or beliefs. By creating an estate plan, unmarried couples can ensure that the person they trust is appointed to make decisions on their behalf in the event of incapacity. This can provide peace of mind and protect their loved ones from legal battles.
3. Protection of Assets
Protection of assets is an important consideration in an estate plan for individuals living together instead of getting married. Without a plan, investments may be subject to creditors, lawsuits, and taxes. By creating an estate plan, unmarried couples can protect their assets from these potential liabilities. For example, by setting up a trust, assets can be transferred to the trust and protected from creditors, lawsuits, and taxes. Additionally, an estate plan can help protect assets from being lost in a divorce or legal separation, which is not a concern for married couples. Still, it can be for those who are not legally married. By creating an estate plan, unmarried couples can ensure that their assets are protected and will be passed on to their loved ones as they intended.
4. Avoiding Probate
Avoiding Probate is an important consideration in an estate plan for individuals living together instead of getting married. Probate is the legal process of distributing a deceased person’s assets. Without a valid will or trust, support will go through Probate and be distributed according to state laws. Probate can be a long and expensive process, and it can also be a public process, meaning that the distribution of assets becomes a matter of public record. By creating an estate plan, unmarried couples can ensure that their assets will be distributed according to their wishes and avoid Probate.
5. Health Care Directives
Health care directives are an important consideration in an estate plan for individuals living together instead of getting married. Without a valid health care directive, medical decisions may be made by someone other than the person’s chosen representative or by the court. This can be especially important for unmarried couples, as they may have different legal rights than married couples in making medical decisions for one another. A healthcare directive, also known as a living will, allows individuals to specify the types of medical treatment they would like to receive or not receive in the event they become incapacitated.
6. Business Succession Planning
Business succession planning is an important consideration in an estate plan for individuals living together instead of getting married. Without a proper plan in place, the future of the business may be uncertain in the event of the death or incapacity of one partner. By creating an estate plan, unmarried couples can ensure that the company continues to operate smoothly in the event of a change in ownership. This can include provisions for the transfer of ownership, management, and financial support of the business.
Estate planning is essential for everyone, including those living together, instead of getting married. Unmarried couples need to understand that without a proper plan in place, their assets and decision-making authority may be subject to state laws which could lead to unexpected results. Consult an attorney to create a comprehensive estate plan that fits your unique needs and circumstances