Jack and Faith could not be happier. Sure, they never officially married like their friends did, but they have lived together monogamously for the past 12 years and act like a married couple in every possible way. In fact, they recently began discussing estate planning and the importance of having a plan should one of them become ill or pass away unexpectedly.
Congrats to Jack and Faith for taking this critical step. After all, estate planning is one of the most important things you can do for your family. For an unmarried couple like Jack and Faith, it is critical if their intention is to have their assets pass to the other as if they were formally married.
With that in mind, we have compiled a few considerations for estate planning—especially for unmarried couples.
If You Are an Unmarried Couple, Consider These Estate Planning Tools
Create a Will
A Will is widely regarded as the starting point for any estate planning strategy. For married or unmarried couples, it is a written legal declaration itemizing how a person wants their affairs handled after death. This includes how assets should be distributed to your partner and other loved ones that you name as beneficiaries, details for final arrangements, and who should care for your children. A Will can be straightforward or very complex; either way, it is very important.
Review beneficiary designations
Equally as important as naming your partner as a beneficiary in your Will, you should do the same for retirement accounts, life insurance policies, and any other assets that allow it. Having your partner named where applicable eliminates any confusion when the time comes to make very tough decisions.
Establish a Power of Attorney
There are several types of POAs that meet certain needs, such as financial and medical. Regardless, the goal for unmarried couples is to assign each other as the Attorney-in-Fact to act on a wide range of matters. This includes conducting business transactions, making legal choices, signing checks, paying bills, and more.
Draft an Advanced Healthcare Directive
To follow up on the previous tip, you want your partner to have the authority to make medical decisions for you and outline your healthcare preferences if you cannot communicate them.
Do not stop at a Will
As we said earlier, Wills are typically considered the starting point for any estate planning strategy. They are not designed to cover all your bases, however. This is where a Trust and many of the documents above can help. Trusts can offer additional protection, allowing you to provide for your partner while shielding assets from creditors, lawsuits, and more. Your estate planning attorney can help you navigate this complex process and answer any questions you may have.
Many people wrongly assume that estate planning is only for older wealthy people and married couples. But this could not be further from the truth. The sooner you get your estate planning strategy in place, the more peace of mind you will have.
Call Nelson Law Group Today!!
When it comes to protecting your family’s future for years down the road, it is imperative to have an estate planning attorney in your corner at all times. Give our knowledgeable staff here at Nelson Law Group, PC, a call if you have any questions. Our staff is always available.
For more information about Brett A. Nelson, click here.
