Estate Planning for Unmarried Couples

by Brian Redhead

In his article entitled “Estate Planning Tips for Unmarried Couples”, author Randy Hecht illustrates the profound challenges faced by unmarried couples in the realm of estate planning. Though he recognizes that the obstacles faced by such couples are comparatively major to those faced by married couples, he asserts that these obstacles are not insurmountable. Through careful strategizing and a thorough awareness of the legalities surrounding state-specific estate planning, unmarried couples can ensure that they have the same rights as their married counterparts.

Indeed, it is beyond unfortunate that, in the eyes of the law, couples that are unmarried, whether they’ve been together for one year or fifty years, are synonymous with strangers. According to the US Census Bureau, the number of unmarried couples is increasing by several million each year (Reeves, “Financial”). Such couples have no legal rights when it comes to property or healthcare, often creating painful circumstances when one partner is in extremely poor health or has passed on unexpectedly. Hecht offers the following suggestions for unmarried couples to effectively plan their estates to protect themselves against such dire circumstances: create a concrete power-of-attorney for each other, prepare a durable health care directive, and maintain updated beneficiary designations on all insurances. Additionally, unmarried couples with children need to often make special accommodations for all family members to ensure no one is slighted in the event of an unexpected death (Reeves, “Living”). While some states are trending toward broadening the rights of domestic partnerships, most states still require that unmarried couples take substantial precautions to ensure their rights are adequately protected.

References

Hecht, David (2004). “Estate Planning for Unmarried Couples”. Retrieved on March 18th, 2009,
http://www.aarpmagazine.org/people/Articles/a2004-03-19-mag-estateplan.html.

Reeves, Scott (2005). “Financial Tips For Unmarried Young Couples”. Retrieved on March 19,
2009 from
http://www.forbes.com/2005/08/02/finances-investing-livingtogether-cx_sr_0802shackingup1.html.

Reeves, Scott (2005). “Living Together Makes More Sense”. Retrieved on March 19, 2009
From
http://www.forbes.com/2005/08/03/marriage-finances-money-cx_sr_0803middleage.html