What Are Special Estate Planning Considerations for Unmarried Couples

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What Are Special Estate Planning Considerations for Unmarried Couples?

Answered By

Patricia De Fonte

Estate Planning Attorney at De Fonte Law PC – Estate Planning With Heart

patricia@defontelaw.com

Question:

What are special estate planning considerations for unmarried couples?

Answer:

In many states, including California, you and your unmarried partner will never have a “Common Law” marriage. This means the family law code will not apply to you, regardless of the length of your relationship.

You are legal strangers and have no rights to each other’s assets or to act as each others’ proxies and agents for healthcare or finances.

You may have no legal right to remain in your partner’s home if they die.

If the co-parent of a minor child dies, the surviving parent may not have access to or the right to control the assets inherited by the minor children. A judge may give that authority to someone else.

Has your CPA may have told you it is better to remain unmarried for income tax reasons? Have you met with an estate planning attorney to determine your capital gains exposure on death?

This video was made with unmarried couples in mind, but married couples should tune in! Did you know that capital gains tax exposure rests on the words used on the face of your deed? Taking the title as “Community Property” has terrific tax benefits – a double step-up in basis. This protects a surviving spouse and your ultimate heirs. All other forms of title (joint tenants, even with rights of survivorship and tenants in common) leave the survivor exposed to capital gains taxation. But that does not mean this is the right way to take the title in every instance – check with your estate planning attorney or family law attorney.

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Beyond Assets: The Heart and Soul of Estate Planning

Purse Strings Approved Professional

Blog Series

Beyond Assets:

The Heart and Soul of Estate Planning

It is easy to get caught up in the numbers and assets, but comprehensive estate planning goes beyond mere finances. It delves into the emotional intricacies and personal narratives that define individuals and families.

Let’s explore the profound impact of crafting an estate plan that encompasses not just wealth, but also values, stories, and heartfelt intentions.

Understanding the Depth of Estate Planning:

Beyond Finances

Estate planning is more than just distributing assets; it’s about leaving a heirs an inheritance that reflects your values and beliefs and takes the beneficiaries’ goals and concerns to heart

Emotional Connections

Infusing your estate plan with heart adds depth and resonance, creating a lasting impact on those who inherit it. 33% of people who receive an inheritance lose it within three years. Adding language about the best and highest uses of money and your hopes for your beneficiary’s future gives them the emotional support they may need.

Human Experience

Consider how your decisions will shape the lives of your loved ones, not just financially, but emotionally and spiritually as well.

Family Dynamics and Inclusivity:

Human Experience

Consider how your decisions will shape the lives of your loved ones, not just financially, but emotionally and spiritually as well.

Tailored Solutions

Customizing estate plans to address the specific needs of each family member fosters harmony and understanding within the family unit.

Statement of Intent

Adding a Personal Touch -are you leaving unequal distributions to your children? Will the successors you name in your documents come as a surprise to anyone? It is important at times to explain why you have made the choices you have made.

Beyond Legalities:

Communicating Values

These heartfelt clauses communicate your values, wishes, and sentiments to your heirs, fostering a deeper connection with your plan. Every De Fonte Law PC estate plan contains “Well-Being Provisions”, sometimes requiring a successor trustee to meet with a beneficiary to talk about how money distributed from the trust has had an impact on their lives – for better or for worse.

Crafting Personal Narratives

Consider incorporating personal narratives into your estate plan, such as going beyond nominating guardians to provide a roadmap and mission statement for the guardians and the court who will appointment them.

Strategies for Thoughtful Estate Planning:

Open Communication

Engage in open and honest conversations with your family members about your estate plan, addressing any concerns or questions they may have.

Regular Updates

Review and update your estate plan regularly to ensure it reflects any changes in your life circumstances or wishes.

Professional Guidance

Seek the assistance of estate planning professionals who can help you navigate the complexities of estate planning and ensure your plan is comprehensive and legally sound.

Case Studies:

Example 1: The Smith Family

By embracing diversity and tailoring their estate plan to the needs of each family member, the Smiths were able to create a harmonious plan that preserved their legacy for future generations. They explained their use of dead names and apologized for the usage. They acknowledged an economic disparity and explained unequal distributions, and they provided funds for travel for cultural enrichment to encourage beneficiaries to know and understand their country and culture or origin.

Example 2: Personalized Touches

Incorporating personal narratives and statements of intent into their estate plan allowed the Johnsons to communicate their values and intentions clearly, fostering a deeper connection with their heirs.

Conclusion:

Estate planning is not just about finances; it’s about creating documents that express your mission and vision for yourself and you loved ones and that reflect who you are and what you value. By infusing your plan with heart and thoughtfulness, you can ensure that your legacy lives on in the hearts and minds of those you leave behind. Embrace diversity, communicate your values, and craft a plan that resonates with the essence of who you are.

Patricia De Fonte

Estate Planning Attorney at De Fonte Law PC - Estate Planning With Heart

I am an estate planning attorney and the founder of De Fonte Law PC. I started this firm to offer what I think of as estate planning with heart. I wanted to create a better experience for my clients to preserve family harmony, empower their heirs, and thoughtfully reflect their values.