ESTATE PLANNING AS AN UNMARRIED COUPLE
The US Census Bureau reports that more than half of all older adults have only married once and opt to stay legally single in their future relationships.
Cohabiting without a legally recognized civil union, marriage, or domestic partnership certificate can have unintended consequences. For example, without careful estate planning that includes a "living together contract," your assets will not be mutually inheritable. The contract, for example, could cover a single transaction, such as the purchase of a new home. The contract can also cover all aspects of your property and finances, such as asset distribution in the event of incapacity, death, or a breakup.
DRAWING UP A COMPREHENSIVE AGREEMENT: If you're an unmarried couple, it is safer to draw up a comprehensive agreement, enforceable by the courts, that will see you through your lives together.
A “living together contract” often includes rules regarding gifts received, living expenses, property purchases, inheritable tights, and a method for dispute resolution that may arise later, typically through mediation.
COHABITATION PREFERENCES AMONG OLDER ADULTS: Many older Americans prefer not to remarry because it can affect their social security income, pension benefit awards, alimony (as part of a divorce settlement), tax implications, and survivorship rights. A new spouse may disqualify a child from receiving financial aid for college, affecting eligibility for government assistance programs.
To protect and provide for your partner and your adult children, consult an estate planning attorney about a “living together contract” in conjunction with your estate plan to ensure your documents reflect your wishes and are legally enforceable.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
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