Are you and your long-time partner among the increasing number of people who don’t feel like you need a piece of paper issued by the government to codify your commitment?
There are a multitude of reasons why long-term couples never choose to “tie the knot.” Some are averse to marrying after one or more divorces. Others are in the “If it’s not broke, don’t fix it” camp. Still others feel like remaining unmarried helps them maintain more of their independence and identity.
While not getting married can help simplify things if a couple does break up, it can lead to complications, disappointment and even potentially financial devastation when one partner dies – or even if they become seriously incapacitated by injury or illness. All of that can, however, be avoided without getting married with some basic estate planning tools.
Protection if you become incapacitated
All adults – but particularly those who are unmarried — should name someone to have power of attorney (POA) to handle their finances and oversee their medical care if they become incapacitated. There are many types of POA, so it’s wise to explore what they do.
It’s also important to have a health care directive (living will) to detail your preferences for end-of-life care and to name your partner (or whomever you prefer) to act as your health care agent and POA. If you don’t, your partner could potentially have no say in your care, even if they know your wishes better than anyone.
Ensuring inheritance rights
If you die without even a basic will (which is referred to as “dying intestate”), state law determines who inherits your assets. Surviving spouses have inheritance rights, as do children, if there are any. However, Illinois intestacy law doesn’t recognize non-familial or non-marital relationships, no matter how close they are.
That means your partner could potentially be in serious financial jeopardy if you died intestate. By naming them in your will, they will inherit the assets you intend for them to have. You can also take simple steps like adding a transfer-on-death or other designation to bank accounts and other assets on which you’re the sole owner.
All of these and other estate planning steps apply to both you and your partner. Every situation, however, is unique. That’s why it’s wise to get experienced estate planning guidance to help both of you protect your futures.