What Unmarried Couples Should Consider During Estate Planning

Estate planning comes with important decisions for any individual. However, if you are one  of the growing number of unmarried couples, there are unique concerns you can address proactively to minimize issues down the road. Pennsylvania banned Common Law Marriage on January 2, 2005, unless the Common Law Marriage was recognized prior to this date. For this reason it is important that couples who are not married consider the following crucial matters in planning their estates: 

1. Will 

A Will names who will receive your assets upon your passing. Dying without a will presents difficulties for couples who are not married. In such circumstances, your partner could have no legal right to your assets. To avoid this issue, list them as a beneficiary in your will and appoint a trusted executor to carry out the terms. Even if you have a Power of Attorney (POA), you will still need a Will, as the POA terminates upon death. 

2. Power of Attorney

A financial POA is a legal document declaring who can manage your money if you are ever incapacitated. For instance, they can pay your bills if you’re in the hospital. Partners in any relationship may be denied this right if they don’t have an official POA. Similarly to let them make healthcare decisions on your behalf, you have to appoint your partner as your healthcare POA. 

3. Children

If one partner has biological children, the other partner may need to adopt the children. Otherwise, the deceased’s funds may go to a different biological relative. You can also set up a trust with provisions to ensure the children receive the desired assets. 

4. Trusts 

Unless you are married, property cannot be transferred from one partner to another without probate unless by trust. Even if you have named your partner as your beneficiary, you might want to avoid the lengthy court process of an estate. However, you can save time by setting up a living trust, which typically will not go through probate. 

5. Retirement or Life Insurance Plans

While a Will can declare who receives access to bank accounts and personal property, you will also need to review your beneficiaries for any other accounts. For instance, you may have a retirement plan, such as a 401(k) or a life insurance policy. If you would like your partner to receive the funds for these plans, name them as the beneficiary. However, you should review these issues with an attorney as there may be insufficient funds to pay inheritance tax and fees. 

If you have questions about estate planning, turn to Achille Law, P.C., located at 379 Main Street, Brookville, PA 15825. This firm can help you navigate the process and ensure you make the best choices for yourself and your family. Their lawyers provide legal guidance and representation for most legal matters. Visit their website, palaw.org, to learn more about their practice areas, or call (814) 849-6701 to schedule a free consultation.