Estate planning is crucial for all couples, but for unmarried partners, it comes with unique challenges. Unlike married couples, unmarried partners do not automatically inherit assets or have decision-making rights if one partner passes away or becomes incapacitated. Without proper planning, your assets may go to your next of kin instead of your partner, and they may not be able to make medical or financial decisions on your behalf. Here’s what you need to know to protect your relationship and secure your future together:
3 Challenges of Estate Planning for Unmarried Couples
Planning for the future is essential for any couple, but estate planning for unmarried couples comes with specific hurdles that must be addressed. Without legal safeguards in place, unmarried partners in Utah face significant difficulties in areas such as asset distribution, medical decision-making, and financial management. Understanding these challenges is the first step in ensuring your partner is legally protected and provided for in the event of incapacity or death.
1. Asset Distribution
In Utah, when a person dies without a will, their assets are distributed according to intestate succession laws. This means that assets typically go to a surviving spouse or next of kin, such as children, parents, or siblings. Without proper documentation and estate planning, unmarried partners are not considered next of kin and will not automatically inherit anything. To ensure your partner is provided for, you need to create a legally binding estate plan. This includes drafting a will, naming your partner as a beneficiary in financial accounts, and setting up trusts if necessary.
2. Medical Decision-Making Rights
Medical emergencies can be stressful, but they can be even more challenging when an unmarried partner is not legally recognized as a decision-maker. Due to HIPAA laws, healthcare providers cannot disclose medical information to an unrelated person without prior authorization. If you want your partner to be able to make medical decisions on your behalf, you need to establish legal documents such as a durable power of attorney for healthcare, which allows your partner to make medical decisions if you become incapacitated, and a HIPAA authorization, which grants your partner access to your medical records and information.
3. Financial Decision-Making Rights
Just like with medical decisions, financial decisions also require legal documentation. Without proper authorization, an unmarried partner has no right to handle financial matters if their partner is unable to do so. A durable power of attorney for finances allows your partner to manage your financial affairs if you become incapacitated.
Without a legally documented estate plan, as an unmarried couple, your partner may be left without the ability to access financial accounts, make medical decisions, or inherit assets that you intended for them. By taking proactive steps, you can ensure that your relationship is recognized and protected under the law. A well-crafted estate plan not only secures your assets but also provides peace of mind that your partner will be able to care for you and be cared for in return, regardless of legal marital status.
Create a Plan to Protect Your Partner: 5 Tips
Estate planning is especially important for unmarried couples, as they do not automatically receive the same legal protections as married spouses. Without a clear plan in place, state laws may determine how assets are distributed, which can leave a surviving partner without financial support or decision-making authority. To safeguard your partner’s future and ensure your wishes are honored, consider these 5 key estate planning steps for unmarried couples:
- Name Your Partner on Life Insurance Policies: Naming your partner as the beneficiary ensures they receive financial support if something happens to you. This is especially important if you share major financial responsibilities, such as a mortgage or other joint debts.
- Create a Will: A will is the most basic estate planning tool, allowing you to specify who will inherit your assets. Without a will, the state of Utah will decide where your assets go, and your partner could be left with nothing.
- Establish a trust: A trust provides even more protection by allowing assets to be transferred directly to your partner without going through probate, which can be a lengthy and expensive process.
- Name a Power of Attorney for Finances and Healthcare: A power of attorney grants your partner the legal authority to make financial or medical decisions on your behalf if you become incapacitated. Without this document, they may have no say in critical matters, leaving those decisions to the courts or other family members.
- Designate Beneficiaries on Financial Accounts: Many financial assets, such as retirement accounts, bank accounts, and investment portfolios, allow you to name a beneficiary. Ensuring your partner is listed as the primary beneficiary will guarantee they receive these funds directly, avoiding probate and ensuring financial stability.
By taking these steps in estate planning, unmarried couples can protect each other financially and legally, ensuring their wishes are honored and their partner is cared for in the future.
Understanding Common Law Marriage in Utah
Utah doesn’t permit common-law unions. However, you can ask the court to recognize your relationship as a marriage. If the court approves, the partners will be considered to have been married ever since the requirements below have been met. If the court grants your request, it will sign a decree. The decree will recognize your relationship as a marriage. The decree recognizing a relationship as a marriage is the same as getting married. Regardless of the relationship, an unmarried couple is not entitled to one another’s estate or assets in the event of death or incapacitation unless they register as domestic partners.
In Utah, the terms domestic partnership and civil union are used interchangeably. While not offering all the rights of marriage, domestic partnership registration can provide legal recognition to your relationship. To further strengthen your legal standing, you should also have proof of a committed relationship, such as a joint mortgage or lease, shared bank accounts or credit cards, and named beneficiaries on life insurance policies or retirement accounts.
Why You Need Professional Guidance for Estate Planning as an Unmarried Couple
Navigating estate planning for unmarried couples can be complex, and mistakes can lead to unintended consequences. An experienced estate planning attorney can help you ensure your assets are distributed according to your wishes, establish legal authority for your partner to make medical and financial decisions, and set up wills, trusts, and life insurance policies to protect your partner. This can also help you avoid probate and legal complications that could arise from intestate succession laws, which determine how a deceased person’s property is distributed when they die without a valid will.
At Kelly Cardon Law, we understand the unique process required for estate planning for unmarried couples. Our experienced attorneys will work with you to create a personalized plan that secures your future and ensures your wishes are honored.
For over 35 years, we’ve helped Utah residents of Salt Lake, Summit, Weber, and Davis County protect their assets and loved ones with comprehensive services. Don’t leave your future to chance—contact Kelly Cardon Law today to start planning for tomorrow.
