Within the last few decades, the marriage rates in the United States have dipped slightly, while the number of unmarried couples who choose to cohabitate has risen. According to recently released data, “the overall share of married individuals has trended downward—from 55.9 percent in 1996 to 46.4 percent in 2023. And the share of cohabitating couples has increased from 3.7 percent in 1996 to 9.1 percent in 2023.” In other words, more couples are opting to live together in committed relationships without entering into marriage. However, it’s worth exploring some of the implications of unmarried couples residing together, specifically when it comes to estate planning.
Many states, including Michigan, do not automatically provide legal protections for unmarried partners in estate matters. While succession laws allow one spouse to inherit the estate when the other spouse passes away, this transfer does not automatically occur in cases where the partners are unmarried. This could mean that an unmarried partner may be unable to make critical financial or healthcare decisions when their partner becomes incapacitated, which can be a bewildering and daunting experience. Fortunately, there are estate planning strategies that you and your partner can put in place to clarify and protect your wishes. Once these estate planning documents are in place, you and your loved one can face the future with greater ease and confidence. This post will explore some estate planning strategies for unmarried couples and how seeking the guidance of a highly qualified and caring Michigan estate planning attorney can help you create a personalized estate plan to protect you and your loved ones.
Why Estate Planning is Critical For Unmarried Couples in Michigan
When someone passes away in Michigan without a will or estate plan, the court will oversee the administration of their estate and the distribution of assets according to state law. If the person who passes away (known as the decedent) is married, Michigan’s intestate succession laws will guide the administration of their estate, with the entire estate passing to their living spouse. Or, if the decedent has a living parent or descendant, the court will allocate portions of the estate to these individuals according to the parameters outlined by state law. However, it’s essential to understand that Michigan law does not automatically protect or recognize unmarried partners in matters like inheritance, healthcare, and financial decisions, or other legal rights. Without taking the time to put estate planning documents like wills, trusts, or powers of attorney in place, unmarried couples risk having their assets transferred to the decedent’s biological family members instead of their partner.
Essential Estate Planning Tools For Unmarried Couples in Southeast Michigan
As you and your partner begin to explore your estate planning options, it’s often helpful to seek trusted legal counsel from one of Michigan’s top-rated estate planning law firms. With a knowledgeable legal professional by your side, you can identify your specific needs and complete the estate planning documents that best suit and support your goals. Below are just a few of the important estate planning tools that unmarried couples can put in place to prepare for a secure and protected future.
Wills For Unmarried Couples
Most people are familiar with wills, as these documents are often the cornerstone of any estate plan. Wills allow you to express your wishes and vision for how you would like your assets to be distributed upon your passing. You can also use your will to appoint a guardian for your children in the event of your death and specify someone to serve as your Personal Representative once you pass away. Unmarried couples can use wills to specify that their partner will inherit their estate when one of them passes away, as well as any other preferences that will guide the estate administration process when the time comes.
Revocable Trusts
If avoiding a potentially lengthy (and costly) legal process involving the probate court is one of your estate planning goals, setting up a trust can help to support your vision. When you set up a trust and fund it with your assets, you can ensure your estate will pass to your partner and facilitate their ability to access shared property when you pass away. If you are interested in learning more about these estate planning tools, consider reaching out to an experienced and dedicated Southeast Michigan trust lawyer to get started.
Powers of Attorney and Patient Advocate Designations
When someone becomes incapacitated or unable to make critical financial or medical decisions, estate planning tools like a Power of Attorney and Patient Advocate Designation (also called Medical Power of Attorney or Health Care Proxy) allow a person of your choosing to step in and make these decisions on your behalf. Unmarried couples can use these documents to ensure that each partner can access the health care records of the other and make medical or financial decisions when their partner is unable to do so. You can learn more about the advantages of designating powers of attorney by contacting a caring Michigan estate planning attorney today.
Additional Estate Planning Considerations For Unmarried Couples in Michigan
Every relationship is different, which is why it’s important to work with a legal professional to create a customized estate plan that speaks to your unique needs and goals. In addition to exploring key estate planning documents like wills, trusts, and powers of attorney, your estate planning lawyer can help you explore other tools to support your vision for your future and your legacy. For instance, if you and your partner have children, engaging in guardianship planning is essential to ensure that they are well cared for in the event of your passing. You may also want to plan for how to access each other’s digital assets and shared accounts when one of you passes away. Whether you are interested in learning more about unmarried partner inheritance in Michigan or you and your partner are ready to put an estate plan in place, the dedicated legal team at Warren & Schairbaum, PLLC, is here to assist you.
When it comes to safeguarding your future, you deserve top-tier estate planning services that are customized to address your specific needs and goals. At Warren & Schairbaum, PLLC, we are committed to delivering personalized estate planning services to ensure that you and your loved ones can enjoy a bright and secure future. Please reach out to our Ann Arbor, Michigan office today by calling (734) 769-9300 to get started with a highly experienced and dedicated estate planning attorney.
