What to Know about Estate Planning for Unmarried Couples

We’ve all seen the medical drama: one partner in critical care, the other pacing in the waiting room, unable to be by their side because they’re not considered family.

It’s gripping on TV, but no one wants to face that in real life. If you share your life with a partner but aren’t married, you might wonder how to protect each other if something happens.

With census data showing married couples now make up less than half of U.S. adults, it’s an important conversation. Whether you’re married or not, you may share property, assets, children, or pets, and you want to ensure your partner is cared for if something happens to you. How can you ensure they don’t have to fight the legal system?

Do unmarried couples need an estate plan??

The short answer is a resounding “YES.”?

As an unmarried couple, you should proactively create legal agreements to ensure your significant other has a say in your health care, finances, or inheritance after you die.?

However, state laws differ, so it’s vital to plan proactively and specifically for your place of residence.

In Texas, for example, property acquired during a marriage is owned equally by both parties, no matter whose name is on the property. But this doesn’t apply if you’re not married and you don’t have an estate plan.

Let’s look more closely at some of the common issues unmarried couples face in Texas.

Lack of automatic inheritance rights

Unlike a legal spouse, a partner in an unmarried relationship is not entitled to inherit any of your assets automatically, and that can include Social Security benefits, bank and retirement accounts, or real estate in your name. Even assets you purchased jointly could be questioned unless you’ve specifically documented your shared ownership.

No legal rights to make medical decisions

Unmarried partners are generally not considered next of kin, and it’s unlikely you will be allowed to make medical or financial decisions on behalf of your partner without proper authorization if they become incapacitated.

Vulnerability to disputes

Without a will, estate plan, or other legal documents, surviving partners can face legal disputes regarding assets, healthcare decisions, or burial arrangements from family members. Even with an established cohabitation agreement or if you qualify as a common law partner in Texas, some end-of-life considerations will not be covered.

Tax implications

The government treats inherited money and gifts differently between married couples and other heirs.?

Unlike married couples, unmarried partners do not benefit from the same tax breaks, such as the unlimited marital deduction for estate taxes. However, unmarried couples may offset some of these tax implications by leveraging tax-efficient strategies, such as charitable giving or using trusts to minimize the estate tax burden on the surviving partner.

Can your partner make decisions for you if you can’t??

It might seem like a long shot that you’d ever face the TV-style nightmare of being kept from your partner in the hospital. However, needing to make healthcare decisions is a realistic situation to consider. There are a few estate planning vehicles that can help.?

Healthcare power of attorney

You can ensure your partner can speak for you by establishing a healthcare power of attorney. This legal document lets you name your partner as your healthcare proxy, giving them the legal right to make medical decisions if you can’t.

Without this, those decisions typically fall to your closest blood relative, whether or not they know what you’d want.?

Living will

Another important document is a living will. A living will often goes hand-in-hand with the power of attorney, spelling out your wishes for end-of-life care—like whether you’d want life-sustaining treatment. This measure can offer your partner peace of mind, knowing they’re following your preferences.

Durable power of attorney

Then there’s the durable power of attorney (POA)—a must for unmarried couples. It lets your partner manage your finances if you’re incapacitated. Without it, they won’t be able to access your accounts, pay bills, or handle financial matters, which could lead to unnecessary headaches like frozen assets.

What should unmarried couples include in their estate plans?

Healthcare issues are only part of the equation for unmarried couples. It’s also necessary to think about your assets and how they’ll be managed in the event of your passing.

These estate planning measures include:

• A last will and testament ensures your assets are distributed as you wish, preventing state laws from deciding—and potentially leaving your partner with nothing.
• A living trust is a legal entity that manages your assets according to your instructions. You can serve as trustee while alive and name your partner co-trustee or successor. Unlike a will, a trust remains private, offering more protection and privacy for your partner.
• Beneficiary designations for assets like retirement accounts, life insurance, and bank accounts should be carefully reviewed to ensure your partner is listed correctly.
• Joint ownership of assets provides documentation of shared property, such as holding a home as “joint tenants with right of survivorship” to ensure your partner retains the property after your death. Both parties must agree to sell or manage the property while alive, so consider the legal implications in case of a breakup.
• A letter of instruction or wishes offers your partner important details about your estate, your wishes, and practical matters like funeral plans, key document locations, and account passwords. While informal and non-binding, it’s a useful guide.

The importance of working with an estate planning attorney

Even if marriage isn’t in the cards, planning to protect your partner should be. That’s where an estate planning attorney comes in. They’ll help you navigate tricky state laws (especially in Texas) to make sure your partner is protected—whether it’s handling medical decisions, property, or finances.

Plus, life changes. You buy a house, have kids, or just shift priorities over time. An attorney ensures your estate plan stays up to date, so it always reflects your current situation. They’ll also personalize everything—wills, trusts, power of attorney—to fit your life with your partner and keep things running smoothly if the unexpected happens.

The estate planning attorneys at The Law Offices of Shann M. Chaudhry, ESQ., can help you and your partner develop a comprehensive estate plan to safeguard your future. Schedule a consultation today.

Shann M. Chaudhry, Esq

Website

• smcesq.com (Company)

Phone

• 210-646-9400 (Work)

Email

[email protected]