For many long-term, committed couples who chose not to marry, estate planning is essential, but can often be overlooked. Unlike married couples, unmarried partners do not automatically receive legal rights to inherit assets, make medical decisions, or manage financial affairs in the event of incapacity or death of their partner. However, with careful planning, couples can protect their interests to ensure their wishes are honored.
Unmarried partners face unique legal hurdles in estate planning, one of which is the lack of automatic inheritance rights. Ohio’s intestacy laws do not recognize unmarried partners. For example, upon the death of a spouse, if there is no Will or estate plan in place, the surviving spouse will more or less inherit the deceased spouse’s estate. However, if two partners are not married, the surviving partner will receive nothing from their deceased partner’s estate if there is no estate plan in place.
Further, Ohio allows for spouses to make financial and health care decisions on behalf of their incapacitated spouses. In the absence of proper legal documents, such as Financial Power of Attorney and Health Care Power of Attorney, an unmarried partner does not have the right to make such decisions. These decisions may instead fall to legal next of kin, such as parents or siblings.
To overcome these challenges, unmarried couples should take proactive steps to establish a comprehensive estate plan. A well-drafted Will ensures that assets are distributed according to the deceased partner’s wishes. Alternatively, a trust can be more flexible and offers privacy while avoiding probate.
A durable financial power of attorney allows a partner to manage financial affairs in the event of incapacity. Similarly, a health care power of attorney designates a partner to make medical decisions for the incapacitated partner.
Of course, some assets can be titled in such a way where the unmarried partners hold property jointly. For example, real estate and some accounts can be owned as joint tenants with rights of survivorship, where the property will automatically pass to the survivor upon the first partner’s death.
Also, accounts such as life insurance, retirement plans, and bank accounts, allow for naming beneficiaries. However, there may be some tax implications as to how the surviving partner inherits these accounts, specifically IRAs and other retirement plans.
For unmarried couples in Ohio, estate planning is a critical step in securing their future together. By proactively establishing wills, trusts, powers of attorney, and proper beneficiary designations, partners can avoid legal complications and ensure their wishes are honored. The experienced estate planning attorneys at Cavitch can provide tailored guidance to navigate these challenges and create a plan that best protects both partners.