In a 2019 study by Pew Research Center, it was found that roughly 59% of people ages 18-44 have lived with unmarried partners at some point. Additionally, according to census data 7% of adult couples living together are unmarried, totaling around 17 million people.
In a recent episode of our Wealth Matters radio show, Gaslowitz Frankel partners Robert Port and Craig Frankel discussed estate planning tips for unmarried partners with special guests Jennifer Gibbs of the Gibbs Tillery Law Firm and Kelley Napier of Brannon Napier Elder Law.
Here are some takeaways from their conversation.
How Has COVID Impacted the Number of Unmarried Couples With Estate Plans?
One of the biggest changes seen in the estate planning industry during the COVID-19 pandemic has been the increase in the number of people actively thinking about their mortality. More and more people are realizing that tomorrow is never guaranteed and they need to have their affairs in order to protect their loved ones and their assets.
Not only that, but with many businesses closing and limited activities available, people had more time on their hands in quarantine. One of the biggest reasons people put off estate planning is the notion that they will “do it later” when they aren’t so busy. The pandemic removed a lot of distractions, so more people have been willing to take the time to contact an estate planning attorney and begin the process.
What Should Unmarried Couples Consider Regarding Their Estate Plans?
For unmarried couples specifically, there are a few things to identify during the estate planning process:
- What are your assets?
- Do you want shared ownership of any of these assets with your partner?
- How would you want your personal assets to be distributed?
- Do you want your partner to be in charge of your healthcare decisions should you become incapacitated?
- Do you want your partner to be in charge of your financial decisions should you become incapacitated?
What Are The Most Important Estate Planning Documents For Unmarried Partners?
In most states, unmarried partners (even those who live together) have no legal claim to any assets or decision-making on their partner’s behalf unless directly stated in their partner’s estate planning documents. Because of this, there are two crucial documents that unmarried couples need to include in their estate plans:
Advanced Directive for Healthcare
In some states, you don’t have any rights to make healthcare decisions on behalf of your unmarried partner unless stated otherwise in an Advanced Directive for Healthcare. This document both gives and limits powers over what medical decisions can be made and by whom. If you know that you would want your unmarried partner to have the final say in any medical decision should you not be able to make it yourself, this document is imperative.
Durable Financial Powers of Attorney
A Durable Financial Powers of Attorney is similar to an Advanced Directive for Healthcare but covers financial matters rather than healthcare decisions. According to Jennifer and Kelley, this is the most important document any of us can have, as it determines who will be able to manage your finances should you become incapacitated or pass away. Without the POA, no one else can manage your finances outside of whomever is named in your will or whomever is appointed by the court if there is no will in place.
Are You Looking for More Estate Planning Tips for Unmarried Partners?
Stream the “Wealth Matters” episode from our YouTube channel here.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes representing individuals, executors, trustees, investors, shareholders, and corporate fiduciaries in complex fiduciary disputes involving wills, estates, trusts, guardianships, and businesses.
