Some unmarried couples have been together for so long that everyone they know just assumes they’re married – and they may not bother to correct them. Often, they “feel” married, so they see no reason to bother with the license and ceremony. That’s especially true if they don’t have children together or one or both has been through a contentious divorce.
While this lack of a marriage certificate may have little or no effect on their daily lives, it can make a big difference if one of them passes away. The law treats unmarried couples very differently than married ones when it comes to inheritance rights. That’s why it’s crucial for unmarried couples who want their partners to inherit their assets after they’re gone to each have a solid estate plan in place, designating that.
It’s also wise to include documents that give each other authority through powers of attorney (POA) to make health care and financial decisions for each other should they become incapacitated. That can be especially critical if there are family members who may want to step in and do that and leave the unmarried partner with no legal authority at all.
What happens if there’s no will?
Every adult can benefit from having at least a simple will in place. That’s the basis of any estate plan. If someone dies without a will, their assets are distributed according to Alabama’s “intestacy” or “intestate succession” law. Every state has similar laws.
Intestacy laws mandate that assets not covered in a will or other estate plan document (like a living trust) be distributed to relatives based on how close their familial relationship is. This generally prioritizes surviving spouses, children and parents, followed by siblings, grandparents and then more distant relatives. Nowhere in the law are committed, long-term partners included. Further, the law doesn’t recognize how close a deceased person may have actually been to these “close” relatives or whether they can responsibly handle an inheritance.
Unmarried partners can take other steps to help ensure that if one predeceases the other, the surviving one inherits some or all of their assets. Including both names on the deed for your home and owning bank accounts jointly can help these assets smoothly transfer. You can also make your partner the designated beneficiary on your investment and retirement accounts. With sound legal guidance, you and your partner can take the steps necessary to protect one another and yourselves if something happens to one of you.