Living together while remaining unmarried has never been this popular. According to 2009 Census data, more than 6.4 million unmarried opposite-sex couples live together (that’s 12.8 million people). There are an additional 750,000 unmarried same-sex couples in the United States (which translates to an additional 1.5 million people). This is an increase of 92% since 1990. More than half of unmarried households have children. The number of seniors living together has tripled in the last 10 years and continues to increase. The average American spends most of his life unmarried. If you are part of an unmarried couple living together, it may be nice to know that you are far from alone. However, this doesn’t mean that you can ignore how the law affects your relationship.
Since the law considers no formal relationship between same-sex and unmarried couples, inheritance planning is very important and should provide as much protection as possible. Common inheritance planning tools for same-sex and unmarried couples include:
· Domestic partnership agreement
· Will
Revocable Living Trust
Unrevocable Trust
· Durable power of attorney for finance
· Willingness to live and substitute health care
· Restructuring of assets into joint leases
Domestic Partnership Agreement: Domestic partnership agreements define the parameters of the relationship and define the rights and responsibilities of each partner. They are similar to prenuptial agreements and are highly recommended for unmarried couples living together, either same or opposite sex.
Will: When you die without a formal will, the state of Florida will issue a will for you and distribute your assets as they see fit. This is known as “gut succession” and provides the least amount of protection for your family. Same sex or unmarried partners are not recognized by Florida’s intestation laws. So, after your death, your spouse will have no rights to your estate. Opportunities for will contests may be greater in same-sex and unmarried relationships, as family members may not understand the choices you have made.
Revocable Living Trust: Living guardianship may be a good option for same-sex couples or unmarried couples, as it is personal and fast-paced. Living trusts also help avoid probate in many places if you own property in more than one state. Living trusts can hold individual and joint property and enter into force as soon as they are funded. In a revocable trust, you (as the “grant”) retain control of the trust and its assets for as long as you are alive. If you don’t want creditors to access the assets of the trust, an irrevocable trust is a better option. Castings can complement a living trust and must be used to distribute any property not previously placed in a trust.
Durable Power of Attorney: A power of attorney for legal or financial matters allows you to appoint your spouse to manage your affairs, if you are unable to do so. It is also useful as evidence of your will and the nature of the relationship, in the event of a will contest.
The Will of Life and Substitute for Health Care: The will determines your desire for medical care and artificial life support. Without specifically refusing artificial life support through a properly executed living will, the hospital must keep you alive by any means necessary, no matter what the cost or what your real desires are. The designation of a health care surrogate must accompany a living will because it appoints someone to make medical decisions on your behalf if you are unable to communicate your wishes and determine your wishes regarding artificial foods. It is very important to have substitute health care because your partner will not have any legal rights regarding your care without it.
Shared rental: Same-sex couples and unmarried couples can benefit from owning real estate together as joint tenants with the right to survive, meaning that when one spouse dies, the other can take sole ownership of the property even without a will. This designation can avoid estate taxes, capital gains taxes, gift taxes, and probates.
