Fewer young people are taking the trip down the aisle, opting instead to cohabitate. This is creating a variety of unique planning concerns.
Americans that are choosing to cohabit rather than to marry do so for various reasons. Some don’t believe in marriage, while others who fall in the wealthy tax bracket opt to cohabit to avoid a higher tax burden. Whatever the reason may be, these couples still need to consider estate and financial planning.
The Wills, Trusts & Estates Prof Blog recently published an article about the special needs these couples have in estate planning. The article titled "Planning for Cohabiting Couples."
The most important thing to understand is that most laws were developed at a time when couples who lived together were almost always married. Estate planning laws were created with spouses in mind, not live-in partners. Thus, if a person with a spouse passes away without a will, most if not all of the estate will go to the spouse.
However, if a non-married person passes away without a will, nothing will go to the partner. Other laws are similar. For example, a spouse can often get access to health care information that a partner cannot.
What this all means is that cohabiting couples need to have estate plans.
People who live together as a married couple in all but name generally want the same thing for their estates that married people want. For that an estate plan is needed.
Because all of this can get complicated quickly, be sure to consult with an experienced estate planning attorney. He or she can help you ensure that things go smoothly and avoid potential interference from family members when the time comes.
Reference: Wills, Trusts & Estates Prof Blog (February 12, 2015) "Planning for Cohabitating Couples."