Estate planning is crucial for everyone. However, it could present unique challenges for common-law partners. If you are in a common-law relationship, you might wonder how to protect your partner and assets in the event of your passing.
Below are key considerations and potential strategies for estate planning as a common-law couple.
Understanding your legal status
The first step in common-law partners’ estate planning is understanding your legal status. Unlike married couples, common-law partners often do not have the same automatic rights regarding inheritance. Many jurisdictions may only consider your partner your legal heir if you make specific arrangements.
Without proper planning, the court may distribute your assets according to intestacy laws. This could leave your partner without the financial support you intended. Researching the laws in your area and considering seeking legal advice could be beneficial. An attorney could help you understand your rights and obligations.
Strategies for protecting your partner
While the legal landscape can be complex, there are strategies you might consider to ensure your partner is provided for. You could:
Create a will
A well-crafted will could explicitly state your wishes regarding asset distribution, including provisions for your common-law partner.
Consider a cohabitation agreement
This document could outline how you will handle financial matters during your relationship and in the event of separation or death.
Update beneficiary designations
You may want to list your partner as a beneficiary on life insurance policies, retirement accounts and other relevant assets.
Explore joint ownership
For some assets, joint ownership with the right of survivorship might be an option to consider.
Set up a trust
In some cases, establishing a trust might help manage and distribute assets.
Taking proactive steps in your estate planning could ensure the fulfillment of your wishes and protection for your partner.