Estate Planning for Unmarried Couples
Think there's nothing you can plan for as an unmarried couple?
Think again.
An official marriage will often entitle spouses to their share of their significant other’s estate upon death. However, even if you are not married, you can still create a wealth plan for you and your family. Creating one can provide protection for your significant other and ensure he or she has the tools needed to continue onward with financial stability. Here are three things to consider when planning family wealth for unmarried couples.
1. Clarifying Real Estate and Bank Accounts
If unmarried couples choose to own real estate and co-mingle bank accounts, then the couple may want to title these assets as “joint property with rights of survivorship.” This can protect the property rights of each partner in the event of death. Upon the death of one partner, the significant other takes full ownership of the property. If the property is encumbered by a mortgage, joint financing can be a further layer of protection to ensure there are no issues with the bank.
2. Confirming Beneficiary Listing on Retirement Policies
It is often wise for unmarried couples to avoid the probate process as they are often not protected under Ohio law. If it is your desire, you can designate your significant other as the beneficiary for your retirement accounts and your insurance policies. Upon death, your policy and its benefits will flow to the individual you name. This will avoid probate and likely preclude claims from other relatives.
3. Drafting Your Will
If there is probate property you want to leave to your significant other, it is crucial to have them included in the will. Without a designation as a spouse, the laws of intestacy (those covering death without a will) will govern and can shut out non-blood relatives. If you have children with your significant other, this may be a less drastic result. However, without a designation in a will, a probate court will call the shots based on statute.
Family wealth planning for unmarried couples is crucial for those who are in long-term relationships desiring to live together until death. Without a proper writing, you may be setting yourself up for a battle with would-be in-laws. In considering a family wealth plan, unmarried couples should follow the same path as married couples to ensure the ones they love are protected and able to share in generational wealth.