At an initial consultation, we often hear clients say that although they are not legally married, they have a “common law marriage”. This popular misconception can cause a good amount of trouble for your loved ones upon your passing or incapacity. In California, there is no such thing as “common law marriage”. This means that without a proper estate plan in place, your assets and personal effects might end up with the wrong people, instead of your lifetime partner.
Through a revocable living trust, you are able to properly identify who should receive what from your estate after your passing. Simply holding assets in joint title might not be enough for your partner to receive what you intended for them. Probate, which is the court-supervised procedure for divvying up your assets, could cause “intestate succession”. This means that your estate will be distributed to your heirs at law, i.e. parents, siblings, nieces and nephews, etc., instead of your partner. However, with proper planning, you can make sure that your partner is properly taken care of after your passing.
Additionally, unmarried couples do not have the same protections and benefits under the law that married partners have, such as certain estate and gift tax exemptions. Unmarried couples also must make sure that they have designated their partners on their retirement accounts and life insurance policies.
A good estate plan should also include a Health Care Directives and Powers of Attorney, which are documents that can allow your partner to make health and financial decisions for you upon your incapacity. Otherwise, a family member might be appointed to act instead of your loved one since your partner is not legally your spouse.
Planning for unmarried couples requires expertise and proper execution. We can work with your family to ensure that all your wishes are properly identified and written down, so all goes according to your plan. Give us a call at 818-956-9200 if you want to discuss your particular needs. 818-956-9200
Glendale Location
616 E. Glenoaks Boulevard, Suite 203
Glendale, CA 91207
Sherman Oaks Location
15303 Ventura Boulevard, Suite 900
Sherman Oaks, CA 91403