Estate planning is crucial for unmarried couples to ensure that their assets are distributed according to their wishes. Without a will or trust, state intestacy laws may dictate who inherits the decedent’s property, leaving unmarried partners with nothing. Therefore, creating wills and trusts is essential for each member of an unmarried couple to provide for each other upon death.
Common Law Marriage is Not Allowed in Kentucky
Many unmarried couples choose to live in a Domestic Partnership. However, there are no provisions under the statutes of the Commonwealth of Kentucky that will automatically provide for your partner… unless you have proper Estate Planning. Registered domestic partners are not treated as spouses for federal tax purposes. While registering as domestic partners may protect rights and provide enhanced protections, it’s crucial to consult with an attorney experienced in family law and estate planning to ensure a clear understanding of the legal implications and the necessary steps to protect the partners’ interests.
So If you are in a domestic partnership you need to prepare an estate plan. There are no provisions under the statutes of the Commonwealth of Ky that will provide for your partner in case of death. This could result in the surviving partner being forced to move out of the residence that was formally shared. There are several methods of Estate Planning when it comes to what can help Domestic Partnerships. While even married or state-registered couples need an estate plan, unmarried or unregistered couples can provide important protections for a surviving partner and/or any minor children by drafting an estate plan, as well as naming the people responsible for making important decisions about their health and property. With the help of a knowledgeable Attorney, this can be rectified if you set up the following legal documents…
Tenancy is common in Kentucky’s default co-ownership form. Two or more co-owners are tenants unless the deed that gave them the property declares a different co-ownership form. Tenants in common can have unequal co-ownership interests, and they can transfer their interests separately.
Joint tenancy with right of survivorship. This is a legal term for a way to own assets jointly, where two or more parties have equal rights and ownership of an account or real estate. If one owner dies, the surviving owners automatically get full ownership of the asset. This would eliminate probate and is easy for your attorney to create for you.
Last Will and Testament. When you have properly executed your Last Will and Testament, you can provide for your domestic partnership. It does require the Will to be probated and supervised by the Probate Court. As under federal law, Kentucky does not recognize domestic partners. Consequently, such partners are treated as single taxpayers so you must include them by name in your last Will and Testament.
Legal documents you should include in your estate plan: A Power of Attorney gives your partner the legal authority to manage your affairs regarding real estate, business, finance, legal matters, and more. A healthcare directive gives your partner the ability to enforce your personal healthcare wishes should you ever become incapable of doing so yourself. Without these documents insurance companies, banks and hospitals will not recognize your partner’s authority to act on your behalf.
Create a living trust. Like a Last Will and Testament, a Revocable Living Trust gives you complete control over your assets and ensures your partner is taken care of when you die. The biggest advantage is avoiding the delays and red tape of probate. There are no court or attorney fees after the trust is established.
Estate Planning Documents for Unmarried Couples
Unmarried couples should consider having important estate planning documents in place, including a living will with a health care proxy, a financial durable power of attorney, and a Last Will and Testament. These documents help establish and protect their preferences for important decisions and ensure that trusted individuals can make decisions on their behalf if they become incapacitated or upon death.
Tax Considerations and Asset Ownership
Unmarried couples should pay attention to how they own property or other assets together. Owning assets as joint tenants with rights of survivorship allows the surviving partner to take full ownership of the entire property by law. Updating beneficiary designations for retirement accounts is also important to ensure that the partner will inherit the accounts according to their wishes.
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About Grubbs & Landry
At Grubbs & Landry, PLLC, we are dedicated to personal and friendly service. We manage our practice in an ethical, cost-effective manner to best help our clients resolve their legal issues with the least expense possible. We pride ourselves in advocating for our client in divorce, child custody, and child support matters as well as other family law matters. We are active in prosecuting personal injury cases-recovering for the injuries our clients sustain due to the negligence of others. Additionally, we help our clients prepare for the future through the preparation of Wills, Power of Attorney and Living Will.
