Estate planning can be challenging for non-traditional families and unmarried couples. Without careful planning, state laws might not align with their wishes, potentially leading to unintended outcomes. Knowing the unique considerations these families need is important for creating an effective estate plan.
Lack of inheritance rights
Unmarried couples do not have automatic inheritance rights. If one partner dies without a will, the state’s intestacy laws direct assets to the deceased’s closest blood relatives, which may exclude a long-term partner.
Non-traditional families must create a clear will or trust to specify asset distribution and ensure that their loved ones receive the intended inheritance. Naming beneficiaries on financial accounts and insurance policies can help further protect the partner’s financial interests.
Establishing legal guardianship
For non-traditional families with children, legal guardianship is a crucial part of estate planning. If a parent passes away without designating a guardian, the court decides who takes custody of the children.
Unmarried partners need to outline their wishes in legal documents, such as a will or a guardianship nomination, to ensure the surviving partner retains custody. Include a letter of intent to provide additional guidance on how to raise their children. This covers aspects like education, religion, and other personal values.
Healthcare and financial decisions
Without legal documentation, unmarried partners cannot make medical or financial decisions for each other. Couples should draft powers of attorney for healthcare and finances to grant each other these rights. This approach ensures they honor each other’s wishes if one partner becomes incapacitated.
A living will can specify the partner’s preferences for medical treatment in case of a serious illness or injury.
Thinking ahead
By actively addressing the specific needs of non-traditional families in estate planning, you can ensure that your loved ones get cared for according to your wishes and avoid potential legal challenges. Taking these steps now can provide peace of mind for the future.
