Estate Planning for Unmarried Couples in San Mateo
Building a life together with another person is a beautiful thing, but not all couples choose to get married.
Many couples find each other after leaving previous marriages, or simply choose not to marry for other reasons. They may purchase a home together, share finances, or share in responsibility for each other’s health care needs.
However, unmarried couples do not receive the same protections that apply to married couples in California.
When a partner passes away, how their finances and assets are distributed, and to whom, can all be very different from expectations if there is no formal plan in place.
Estate planning for unmarried couples fills that gap.
At the Law Offices of Vidhya Babu, we specialize in estate planning for unmarried couples in San Mateo and the surrounding Bay Area.
We regularly help clients who are in long term relationships, yet unmarried, create plans for making health care decisions, as well as passing down assets according to their wishes, rather than through California’s default inheritance laws.
The Importance of Estate Planning for Unmarried Couples in San Mateo
In California, marriage is a legal distinction that provides advantages to married couples that unmarried couples don’t automatically receive.
Married couples generally gain legal protections like inheritance rights, community property protections, certain tax advantages, and survivor benefits that don’t apply to relationships that aren’t legally recognized by the state. They also gain the ability to make legal and medical decisions on behalf of an incapacitated spouse.
Yet, couples spend years of their lives together and choose not to get legally married for any number of personal reasons. In some states, couples who live together for a certain period of time become common law married, however California does not recognize this type of marriage.
Without marriage or a registered domestic partnership, there is generally no automatic right to inherit a partner’s assets, manage their finances, or make healthcare decisions on their behalf if they become incapacitated. Estate planning for unmarried couples can help create important legal protections and ensure the couple’s wishes are documented.
Challenges of Estate Planning for Unmarried Couples
Couples in a long-term relationship that remain unmarried face several challenges due to the lack of automatic protections that married couples receive.
Protecting Jointly Owned Property
Many unmarried couples in San Mateo jointly own a home or other property together. When a partner passes away, how that property is titled will impact how their share is inherited or passed on, and whether probate is required.
A lack of estate planning for unmarried couples can result in the departed person’s share being inherited by their children, parents, or siblings, which can create unnecessary complications for the surviving partner who still intends to use the property.
California’s complex property tax assessment rules may result in reassessment in certain ownership transfer situations. With San Mateo property values commonly reaching into the multiple seven-figures, a surviving partner may experience unexpected tax consequences without proper planning.
Controlling Who Receives Assets
Couples who are unmarried often assume that if a partner passes away, the surviving partner will automatically inherit their assets. However, without proper estate planning, assets may pass to blood relatives, while the partner doesn’t receive anything.
That is because California intestate laws follow a succession path that heavily favors legal relatives over unmarried partners. Surviving relatives such as children, parents, siblings, and other blood relations all stand in line to inherit assets before an unmarried partner.
Protecting Blended Families
Unmarried couples in their 50’s and above may be divorced or widowed, and sometimes have adult children from prior relationships. Their estate planning goals are likely to be more complex than young or married couples.
They may wish to provide for their children, while also preserving assets for their partner. An estate planning lawyer for unmarried couples can help them balance competing interests and avoid family disputes.
Planning for Incapacity
Health care is another important area where unmarried couples lack the same rights as married couples.
If a partner suffers a medical issue, like a stroke, serious injury, or develops a cognitive disorder, without a legally recognized planning document in place, an unmarried partner will have almost no say in treatment. They may be limited in their ability to speak with doctors, access medical records, or make health care or financial decisions without proper legal authorization.
Estate Planning Tools for Unmarried Couples
Unmarried couples may not have the same inherent rights as married couples, but they’re not without options.
As an estate planning lawyer for unmarried couples, the Law Office of Vidhya Babu uses a variety of tools to help couples create estate plans that reflect their wishes and protect their loved ones.
Living Trusts
A living trust is one of the most effective estate planning tools for unmarried couples. It allows an individual to place assets into a trust that manages and distributes those assets during life and after death.
The trust documents specify how the assets are to be managed and passed down after death. This bypasses California intestacy laws, and generally avoids probate for assets that have been properly titled into the trust.
California’s complex property tax assessment rules may result in reassessment in certain ownership transfer situations. With San Mateo property values commonly reaching into the multiple seven-figures, a surviving partner may experience unexpected tax consequences without proper planning.
Coordinated Separate Trusts
Unmarried couples generally prefer to keep their assets separate, rather than combine them in a single nonmarital trust. This is the ideal approach when partners have a significant difference in assets.
Separate trusts are also preferred when one or both partners have children from a previous relationship. This allows each partner to provide for their children, as well as for their partner. Each person can have different beneficiaries, and protect assets that were acquired before the relationship.
Wills
A will provides explicit instructions for how a person’s assets will be distributed after they pass. Unlike a trust, a will must generally pass through a legal process known as probate.
However, a will can be used to nominate guardianship of minor children, as well as designate specific gifts for loved ones or charities. Unmarried couples often choose to combine a will with separate trusts as part of a comprehensive approach to estate planning.
Durable Powers of Attorney
When a person becomes incapacitated, unmarried couples don’t automatically have the same authority to make legal or financial decisions on behalf of their partner that married couples do.
A durable power of attorney can authorize a trusted partner to handle things like bank accounts, investments, bill payments, real estate, and business transactions when the grantor is unable to manage their affairs.
Without a valid power of attorney, your partner may need to go to court to be granted a conservatorship that enables them to manage your finances.
Advance Health Care Directives
Advance health care directives (AHCDs) are used to appoint someone to make medical decisions on an individual’s behalf, and express a person’s personal preferences for medical treatments and end-of-life care.
This document is critical for unmarried couples, otherwise a partner would have little say in the individual’s health care, if they are unable to make decisions for themselves. Making these plans ahead of time ensures that the person you trust most can advocate for you during a medical emergency.
Beneficiary Designations
Certain assets, like retirement accounts and life insurance policies, are commonly transferred through beneficiary designations. Unmarried couples should review and update these designations to coordinate them with the rest of their estate plan.
Why Work With The Law Office of Vidhya Babu?
The Law Office of Vidhya Babu is dedicated to helping our clients understand their options in estate planning, whether they are unmarried, married, or single.
We can help you answer questions like whether a joint trust or separate trusts are right for your situation, as well as consider the tax implications of property ownership when creating your estate plan.
Whether you’ve been together two years or twenty, our team will take the time to make sure you understand your options as an unmarried couple in California, and create an estate plan tailored to your goals.
Schedule a Consultation Today
Whether you are married or not, all couples deserve the peace of mind knowing that their wishes will be honored and their partner protected after they’re gone.
Contact the Law Office of Vidhya Babu today of Vidhya Babu today for an initial consultation and let us discuss your estate planning goals in San Mateo.
Frequently Asked Questions
There is a significant risk that the surviving partner will not receive anything. That is because unmarried couples do not receive the same protections as married couples in California, even if they’ve been together for years.
Without a formal estate plan in place, California intestacy laws take effect. Assets will likely be distributed to the closest surviving relatives including children, parents, siblings, and other blood relations. This can create unnecessary family disputes, as well as require the lengthy process of probate.
Estate planning for unmarried couples often involves separate coordinated trusts, rather than a joint trust. This allows each partner to retain control over their own assets, while still providing for each other if they choose.
When there are significant assets, blended families, or children from another relationship involved, separate trusts provide flexibility and protection for each partner.
Thanks to high home values in San Mateo, unmarried couples who jointly own a home can benefit from a trust. In some situations, thoughtful estate planning may help minimize the risk of certain property tax consequences and preserve favorable tax treatment. However, this depends heavily on how the property is owned and other specific details.
Because each situation is different, it’s best to speak with an estate planning lawyer for unmarried couples for advice specific to your situation.
The contents and materials of this website should be used as a general guideline and not as the ultimate source of current information. The user should consult their own legal, accounting, or other advisors.