Losing a partner is one of the most difficult experiences a person can go through. It’s especially challenging when you’re unmarried, as the law treats unmarried couples differently than married couples. If your partner dies without a will or any estate planning in place, you may find yourself facing legal and financial challenges. In this article, we’ll explore what happens when your unmarried partner passes away and what you can do to protect yourself.
Legal Implications
Intestate Succession Laws:
When someone dies without a will, they die intestate. Under intestate succession laws, the state determines how their assets will be distributed. In most states, the deceased person’s assets are first distributed to their spouse, children, parents, and siblings. Unmarried partners are typically not included in these laws unless they were registered domestic partners.
Probate Court:
If your partner died intestate, their estate will likely have to go through probate court. Probate is the legal process of settling an estate and distributing assets according to the deceased person’s wishes or applicable laws. Probate can be time-consuming, expensive, and emotionally draining for loved ones. It’s important to note that if your partner had a will, probate may still be required.
Estate Taxes:
Estate taxes may also come into play when your partner dies. In 2021, the federal estate tax exemption is $11.7 million per person. However, some states have their own estate or inheritance taxes with lower exemption amounts. If your partner’s estate exceeds the exemption amount, estate taxes may be owed.
Financial Implications
Jointly Owned Property:
If you and your partner owned property together, such as a home or a bank account, the property will pass to you as the surviving owner. This is known as joint tenancy with right of survivorship. However, if you owned property as tenants in common, your partner’s share will pass to their heirs according to intestate succession laws.
Life Insurance:
If your partner had a life insurance policy, you may be named as the beneficiary. As the beneficiary, you would receive the death benefit directly and it would not be subject to probate. If your partner did not have a life insurance policy, you may be responsible for funeral expenses and other costs associated with their death.
Retirement Accounts:
If your partner had a retirement account, such as an IRA or 401(k), you may be able to inherit the account as the designated beneficiary. However, if your partner did not name a beneficiary or named someone else, the account may go to their estate and be subject to probate.
Protecting Yourself
Estate Planning:
One of the best ways to protect yourself and your partner is through estate planning. By creating a will, trust, or other estate planning documents, you can ensure that your assets are distributed according to your wishes and avoid probate. You can also name your partner as a beneficiary on life insurance policies and retirement accounts.
Legal Agreements:
Another way to protect yourself is by entering into legal agreements with your partner. A cohabitation agreement can outline ownership of jointly-owned property and how assets will be divided if the relationship ends or one partner dies. A power of attorney can give you the legal authority to make financial and healthcare decisions for your partner if they become incapacitated.
Communication with Family:
It’s also important to communicate with your partner’s family about their wishes and intentions. This can help prevent misunderstandings and legal battles after your partner’s death. It’s also a good idea to discuss end-of-life care and funeral arrangements with your partner so you know their preferences.
Conclusion
Losing an unmarried partner is a difficult and emotional experience. By understanding the legal and financial implications of your partner’s death, you can take steps to protect yourself and ensure that their wishes are carried out. Estate planning and legal agreements can provide peace of mind and help avoid costly legal battles. Communication with your partner’s family can also help prevent misunderstandings and conflicts.