millennials

5 Estate Planning Tips for Unmarried Couples

5 Estate Planning Tips for Unmarried Couples

Like it or not, marriage is a business proposition.

"But isn't it also about love?" Yes, yes. Love and feelings and all that stuff. But marriage can also have a huge financial impact on a family.

Marriage (or, rather, not being married) can have an equally huge impact on an estate plan.

According to U.S. Census Bureau data, the number of adults in cohabiting (unmarried) relationships relationships is up 29% since 2007. That's about 18 million adults, roughly half of which are younger than 35.

With this rising trend of cohabitation among Millennials, it is important — perhaps more now than ever — to understand the estate planning implications for unmarried couples.

Do unmarried couples need an estate plan?

Remember that there are two sides of estate planning: What happens to your STUFF when you die and who takes care of your SELF when you become incapacitated. 

Those goals do not change when you get married, so an estate plan for an unmarried couple usually looks about the same as an estate plan for a married couple. It is just much more important that an unmarried couple has an estate plan in the first place.

No Kids? Why You Still Need an Estate Plan

No Kids? Why You Still Need an Estate Plan

Many young couples think that, if they don't have kids, they don't need an estate plan. After all, if you die, everything is going to your spouse anyway, right? Not always.

What happens if we don't have an estate plan?

If you are married with no kids, and you do not have an estate plan or prenuptial agreement providing otherwise, the law in Oklahoma says that everything you have goes to your spouse. However, as we have discussed before, your spouse must still go through probate before he or she can actually get your assets. This is the case even if you have a Last Will and Testament providing that your spouse gets everything.

Single? There Are 2 Simple Reasons You Need An Estate Plan

Single? There Are 2 Simple Reasons You Need An Estate Plan

I'm single with no kids. Do I need an estate plan?

The short answer: yes.

Having an estate plan is a good idea no matter your family situation. But when you are single with no children, planning is all the more important to ensure your wishes are followed.

While the law provides clear “default” options in some areas when you are married (e.g., spouses often have the ability to get certain medical information), those defaults are not applicable when you do not have a spouse.

For that reason, it is important for single adults to consider both sides to estate planning: What happens to your STUFF when you die and who takes care of your SELF when you become incapacitated.

What will happen to my STUFF?

Every state has a framework (called "intestacy laws") essentially providing an estate plan by default.

In Oklahoma, for instance, if you are unmarried and have no kids, the law says that, unless you have an estate plan directing otherwise, your estate will go to your parents or, if they are deceased, to your siblings in equal shares. End of story.

That might sound fine to many people. However, intestacy laws are rigid and do not take into account other desires you may have for your property. For example:

Estate Planning for Millennials

Estate Planning for Millennials

With hitting the work force and starting families (not to mention destroying entire industries), Millennials have a lot on their minds. Estate planning may not even be on your radar.

Besides, isn't estate planning just for older, richer folks? Do you even need an estate plan when you're young and poor?

Do Millennials Need an Estate Plan?

Estate planning is beneficial for everyone, including Millennials.

Different types of plans may be better suited for people of different ages or different stages of life. However, any adult will benefit from having an estate plan.

So, what should a Millennial's estate plan look like? What documents should you have? What things do you need to consider before deciding on an estate plan?

Family is one of the most important factors to consider when developing an estate plan. For that reason, we are using our next few blog posts to discuss estate planning considerations for Millennials in a variety of family situations. You can read each article by clicking the links below: