9 Estate Planning Tips for Unmarried Couples

Estate planning is not solely reserved for married couples. Unmarried couples can also benefit from taking proactive steps to protect their assets, provide for one another, and ensure their wishes are honored in case of incapacity or passing. 

In this post, we will discuss essential estate planning tips specifically tailored for unmarried couples.

1. Open Communication and Shared Goals

Before diving into legal documents, it's vital for unmarried couples to have open and honest conversations about their individual and shared financial goals. Discuss your wishes, expectations, and how you envision providing for one another in the future.

2. Create Wills

A will is the foundation of any estate plan. It allows you to specify how you want your assets to be distributed upon your passing. In the absence of a will, state laws may determine how your assets are divided, potentially leaving your partner without the protection you intended.

Learn more: What Is the Difference Between a Will and a Trust?

3. Consider Durable Power of Attorney

Granting your partner durable power of attorney gives them the authority to make financial and legal decisions on your behalf if you become unable to do so. This is crucial for managing affairs in cases of incapacity.

4. Establish Healthcare Directives

Create a healthcare directive, also known as a living will, to outline your preferences regarding medical treatment in situations where you cannot communicate your wishes. This document provides guidance to your partner and healthcare professionals.

5. Beneficiary Designations

Designate your partner as the beneficiary on assets like life insurance policies, retirement accounts, and bank accounts. This ensures that these assets will go directly to your partner, bypassing the probate process.

Read more: Reasons You Need An Estate Plan

6. Joint Ownership of Assets

Consider jointly owning assets like real estate, bank accounts, or investments. Joint ownership allows the surviving partner to retain ownership without going through probate. However, it's important to understand the implications and consult with a legal professional.

7. Create Trusts for Additional Protection

Trusts offer flexibility in distributing assets and can be particularly useful for unmarried couples with significant assets or specific wishes. They provide an added layer of protection and allow for detailed instructions regarding the management and distribution of assets.

8. Plan for Children's Guardianship

If you have children, it's imperative to designate a guardian in case both parents pass away. This decision should be made thoughtfully and communicated clearly with the chosen guardian.

9. Consult with Estate Planning Professionals

Last but not least, seek advice from legal and financial professionals who specialize in estate planning. They have the expertise to guide you through the process and ensure that your plan aligns with your specific circumstances and goals.

Final Thoughts 

These tips will help you get started in creating a comprehensive estate plan that reflects your wishes and provides peace of mind for both of you. Keep in mind that thoughtful planning today provides a secure future for your partner and shared legacy.

For legal help in California and your other needs, contact BERYS LAW on this page. We also offer courses on real estate investing, landlording, and templates right here!