Estate Planning for Unmarried Couples
Estate planning for unmarried couples is on the rise as more young couples are choosing to postpone marriage. For the first time ever, 18% of all first-time homeowners are unmarried and pool their finances to:
- Pay for down payments
- Receive mortgage approval
Nonmarital relationships are a preference, and many couples do not want to get married for personal reasons, such as not wanting to pass on debt or deal with the hassle of a divorce if there’s a rift in the future.
With the help of an estate plan, you can still build a life with your partner and have protection in place for all that you’ve built together.
Estate Planning for Unmarried Couples: Do Unmarried Couples Need an Estate Plan?
Married and unmarried couples can benefit from a robust estate plan. Washington law does not have “common law marriage,” but there are “committed intimate relationships (CIR).” You may have extensive rights if you’re not married, but the following is true:
- Your relationship is stable and marriage-like
- You’re cohabiting together
Laws allow couples who purchase property together while unmarried to have protection so that one party is not enriched over the other. However, you will not be able to seek spousal maintenance or attorney fee awards.
You will also need to convince a judge that you were in a CIR, which does leave some of these protections up to chance. Unfortunately, while you may or may not have rights, it’s still better to have an estate plan in place to guarantee your wishes are heard and carried out.
Why Is It Necessary for Unmarried Couples to Have an Estate Plan?
Litigation is the last thing a partner wants to deal with if something happens to you. During your life, you can create durable power of attorney documents for both health care and financial powers.
Upon your death, these rights disappear as power of attorney documents are living documents and end upon the life of the principal who signed the documents.
Estate planning for unmarried couples provides robust protections for your partner while you’re alive and upon death.
Proving That You Were in a Committed Intimate Relationship
What is a CIR? You can meet all of the requirements above, such as acting and representing each other as if you were married. The court may find that if you were only together for a year, it doesn’t count as a CIR.
However, Washington courts have found that being together for at two years qualifies as a CIR; other cases state that 10 – 20+ years clearly establishes a CIR.
If you lack even a will, a few things can happen:
- Your partner may have to leave the home that you live in if they’re not listed on the title. If you are in a CIR, and don’t have a will, your parents may inherit your home and your partner may need to litigate to keep it. The court will decide.
- Beneficiaries pass away or move out of the country
- Bank accounts will not pass to your partner, unless they’re a joint owner of the account, or it’s payable on death to your partner.
- Custody issues may arise if you’re helping raise your partner’s child and you’re not named as a guardian.
If your partner wants to transfer assets to you and there’s no estate plan in place, you do not have the clear right to this property being unmarried. Not uncommonly, the courts are involved to establish rights to assets after the death of the first partner in a CIR situation.
You can remain unmarried and provide strong rights to your partner with the help of a carefully drafted estate plan.
What Types of Documents Should Be in Place for Unmarried Couples?
Estate plans should be created based on an individual’s needs and goals, but there are some documents that should be included in every plan.
Estate planning for unmarried couples should include the following documents:
Last Will
A Will outlines your instructions on how you want to distribute your assets after your death. It can also name a guardian for minor children.
Washington’s Committed Intimate Relationship Doctrine gives unmarried partners the legal right to one another’s property in certain circumstances. But what if it’s determined that the doctrine doesn’t apply to your estate? The law is far from simple, and litigation will be necessary to determine who gets what.
Litigation is costly, financially and emotionally, taking a huge toll on the CIR partner and surviving family members.
Rather than leaving it up to chance and to the court, the ideal solution is to create a Will or trust. If you wish to leave everything to your partner, a Will or trust allows you to do so and gives you peace of mind that your wishes will be carried out.
Durable Power of Attorney for Health Care
A durable power of attorney for health care gives an appointed person the legal authority to make medical decisions on your behalf when you are no longer able to make them yourself. Your appointed health care agent can also obtain medical information from the provider.
Appointing your partner as your health care agent will ensure they can stay informed about your medical condition and can make decisions on your behalf.
If you don’t name your partner as your health care agent, the law will dictate who will make your medical decisions if you become incapacitated. The appointed family member may not be someone you want to direct your care.
Advance Directive (Living Will)
A living will is also known as an advance directive or health care directive. It specifies your wishes for end-of-life care.
If an illness or accident leaves you unable to make medical decisions for yourself, your health care agent – the person appointed under your durable power of attorney – will be your voice and carry out the instructions in your advance directive.
Specifying your wishes ensures that your agent doesn’t have to make difficult decisions based on what they “think” you would want.
General Durable Power of Attorney for Finances
Similar to a durable power of attorney for health care, a general durable power of attorney for finances authorizes a person of your choosing to make decisions on your behalf when you’re no longer able to do so yourself. In this case, you’re giving your agent the ability to make financial decisions.
For example, your agent can pay your bills or conduct business on your behalf if you are no longer able to manage your affairs.
A general durable power of attorney for finances allows your partner to help with financial-related matters if you need it. For example, your partner will be able to:
- Make the financial arrangements to transfer you to another medical facility if necessary
- Sell a home that you own together
Without a general durable power of attorney, the court will appoint someone to handle your finances. That person may not be someone you would trust with your finances.
Revocable Living Trust
Although there are many types of trusts, a revocable living trust is the most well-known. This type of trust is created while you’re still alive, and it’s used to manage your assets.
The reason it’s called a “revocable” trust is because you can change its terms any time or even revoke it entirely.
As the trustee, you maintain full access to the assets held within the trust while you are still alive. The successor trustee will handle the trust after your passing and will have full access to these assets.
Creating a revocable living trust ensures management of assets if you are incapacitated and a smooth transfer of assets after your death without the need for probate. Through it, you can provide for your partner and ensure they’re cared for after you’re gone.
How Will Our Team Help Evaluate Our Unique Needs and Provide an Effective Plan?
Proper estate planning for unmarried couples can ensure that you enjoy a life with your partner that protects everything you built together. You can transfer assets to your partner, allow them to make key medical decisions on your behalf and more with proper planning.
At ELG Estate Planning, we have offices in Spokane, Tri-Cities, and Seattle to help unmarried couples across Washington secure their rights. Contact us today to schedule a consultation and discuss your estate planning needs.
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