Estate Planning for Unmarried Couples: Addressing the Unique Challenges that Unmarried Couples Face

Estate planning is a crucial step in securing the future of your loved ones and managing your estate on your terms.

However, the process could be challenging, especially when it comes to unmarried couples.

Unlike married couples, unmarried couples do not have the same legal rights and protections.

As a result, they must consider some unique factors and potential complexities when creating an estate plan that ensures their wishes are upheld.

Let’s take a deeper look.

What Are Some Challenges of an Unmarried Couple with Estate Planning?

Estate planning for unmarried couples in California can be complex due to the absence of many of the legal protections automatically granted to married couples.

Some of the key challenges that unmarried couples may face in estate planning in California include:

● Intestacy Laws- When an individual dies without a Will the state's intestacy laws determine how their assets are distributed.

These laws typically prioritize spouses, children, and close relatives.

But unmarried partners are not considered legal heirs, so without a Will, their interests may not be protected.

● Property Ownership-Unmarried couples often co-own property, and the way the property is owned can have significant implications for inheritance.

Understanding the differences between joint tenancy and tenants in common is crucial, as it can affect whether the surviving partner inherits the deceased partner's share of the property.

Under California law, property owned by the couple is considered community property if they’re married.

However, if the couple is unmarried, each partner owns only his or her share of the property.

Which means unless there is a legal agreement in place stipulating otherwise, when one partner dies, the surviving partner may not get any part of the deceased partner's property.

● Child Custody and Guardianship- If the couple has children, it's essential to address issues related to custody, guardianship, and financial support by designating a legal guardian for their children and provide for their financial well-being in case of incapacitation or death.

● Healthcare Decision-Making- if you’re incapacitated and cannot make decisions for yourself and have not named someone to act as your agent under a legal document, your partner may not be allowed to make healthcare decisions on your behalf.

To ensure that their partner can make medical decisions on their behalf and vice versa, they should create healthcare directives and powers of attorney for healthcare.

● Beneficiary Designations- Naming beneficiaries is an important part of estate planning. Unmarried couples should ensure that their beneficiary designations on life insurance policies, retirement accounts, and other assets accurately reflect their intentions, as these designations take precedence over a Will.

Estate planning is not always a priority for unmarried couples, but it’s a mistake to think that it’s only for married couples with children.

Unmarried couples need to make plans for how their assets will be distributed after their death and how their medical wishes will be handled if they become incapacitated.

To navigate these challenges effectively, you should consult with an experienced estate planning attorney who can create a comprehensive and legally sound estate plan that addresses your unique circumstances and protects your interests and those of their loved ones.

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DISCLAIMER: The content contained herein is for general informational purposes only.  These materials do not constitute legal or other professional advice.  We do not accept any responsibility for any loss that may arise from reliance on this information.  No reader should act or refrain from acting based on information contained in this article without seeking advice of counsel.