SIGNIFICANT OTHERS

Estate Planning for Unmarried Couples

Estate Planning

According to a USA TODAY article, Census Bureau statistics show that the number of unmarried couples who are living together continues to rise. Some demographers blame the poor job market and the bad economy, while others say that the societal stigma once attached to living together prior to marriage is no longer relevant.

Because the law does not bestow the same ownership benefits on those in long-term relationships as those who are married, unmarried couples need to protect themselves, especially if property is involved.

Estate planning for unmarried couples is especially important. If a surviving partner inherits real estate, savings and retirement accounts, this could easily become a legal nightmare, and be lost to the significant other. They may be forced to sell the home, or negotiate with close relatives for their own property. To prevent this and to take advantage of estate planning strategies and to protect an estate from taxes, couples should consult with an estate planner and create protective trusts.

If you and your partner own a house together, joint tenancy may be adequate, but a trust is much better as a form of legal co-ownership that ensures the property passes to one partner as a survivor benefit without requiring the property to go through probate. Unmarried couples can also draw up a trust or contract that specifies how the property will be handled in case of a breakup.

Unmarried couples need to protect their assets! Contact your estate and asset protection planner.