A lot of couples share homes, children, and finances even if they are married. If you and your spouse are not married, your union’s legal status does not impact your daily life. But proper estate planning is essential for all couples, married or not. This is because unexpected situations can arise.
While an estate planning document does not define your relationship, the law does. If you die, your partner may need to leave the house without legal claim to it. When you become incapacitated, a relative of yours may gain control over your healthcare and financial decisions, possibly depriving your life partner of access to you in the hospital.
Thankfully, you can offer your partner valuable protection even if you are not married. If you still do not have the right estate planning documents in place, reach out to an attorney from The Ebbert Law Firm who can help you prepare these documents and ensure the legality of your plans. Estate planning is for everyone; however, it is more essential for unmarried couples since they do not have the protection provided to surviving spouses. The following are tools you can use to protect the inheritance, children, house, financial stability, and decision-making ability of the surviving partner.
Last Will and Testament
Who gets your house and valuable belongings when you die? Who will take care of your minor children and handle their inheritances until they become adults? Without a valid will, the intestacy laws of Tennessee will make such decisions. Whatever you own exclusively will be given to your nearest relative. A blood relative you never meet may collect a bigger part of your estate than your partner.
A will details the assets you own and provides instructions on their distribution following your death. When named, your partner can legally inherit your assets. But the will covers only assets in your estate. Life insurance policies, bank accounts, retirement accounts, and pensions will pass to your named beneficiary.
Medical Power of Attorney
The scope of a will is limited and it just takes effect when you die. A comprehensive estate plan has provisions for you when you become incapacitated like a terminal illness or a serious injury. Medical Power of Attorney is key to incapacity planning. This involves appointing a trusted individual who will make medical decisions on your behalf. With this document, your partner will decide on where, when, and what type of treatment you get during your incapacity.
When unmarried couples engage in estate planning, they may need third-party documents to comply with regulations. For instance, mutual HIPAA authorizations may be needed within a Medical Power of Attorney to allow every partner to access each other’s medical records.
Living Trust
Inheritance laws in the state can be difficult for unmarried couples. Assets disbursed through a Wil should go through the probate process. While assets distributed through beneficiary designations do not go through this process, they are not protected from lawsuits and creditors. Also, unmarried couples can be subject to estate taxes, leaving an unmarried surviving partner financially unstable when their partner dies.
To guarantee the financial stability of your partner in the future, consider setting up a living trust and place assets in it. A trust does not go through probate, providing your partner with immediate access to inheritances. Also, assets held in a trust are protected from legal judgments, creditors, and financial predators.
Financial Power of Attorney
This document provides your partner with the right to pay bills, collect your benefits, and file taxes. Also, it can let them sell property, manage your investments, and run your business. As your partner has control over your property, no relatives can occupy or sell your home.
