If you’re in a long-term, committed relationship but have chosen not to marry, you’ve got a lot of company. Couples of all ages see no reason to get paperwork defining their relationship, even if it’s one that lasts a lifetime.
If you aren’t married and aren’t registered as domestic partners, however, but you want your partner to inherit your assets if you predecease them (and vice versa), you’ll need to put an estate plan in place. State laws allow surviving spouses and registered domestic partners to get a share of the other’s estate even if they die without a will (intestate). However, there’s no such provision for those who haven’t codified their relationship under the law.
Leaving assets to your partner
Even if all of your large assets have both of your names on them, there are likely some assets that wouldn’t automatically go to the surviving partner. Including them in your will and potentially a revocable living trust or other type of trust can prevent any confusion and minimize the chances of disputes arising with any heirs or other beneficiaries.
Giving your partner authority over medical and financial decisions
Further, it’s important to put some protections in place in case you become seriously ill or injured, and decisions need to be made on your behalf. In Maryland, an advance directive for health care (sometimes called a living will) lets you designate your wishes for things like when you want life-prolonging measures ended if there’s no chance of recovery.
Along with the advance directive, you can appoint your partner to be your health care agent and have power of attorney (POA) over medical decisions (using your advance directive as their guide) if you’re unable to make them for yourself. This can help avoid disputes with family members who may disagree about your (and your partner’s) decisions.
You can also give your partner financial POA so that they can make transactions on your behalf if you’re unable to do so. Even if most of your assets and debts are joint, you may have some that are solely in your name that might need to be sold or transferred in a crisis.
There are other steps you can take, like having payable-on-death, transfer-on-death and beneficiary designations on your accounts and other assets that aren’t jointly owned to allow them to transfer more smoothly if you predecease your partner. With sound estate planning guidance, you can both ensure that the other will have the rights and authorities you want them to have.