By Mark E. Lewis, Law Offices of Mark E. Lewis & Associates

Previously, we have explored how estate planning intersects with marriage, divorce, and remarriage. The short answer is … it’s complicated!

This year, I want to address the romance before the marriage. Should your sweetheart factor into your planning and be not only your Valentine, but also your beneficiary? Let’s look at what the law says, how you can respond, and finally, what we (as estate planning attorneys) would consider wise.

What Does the Law Say?

The law says virtually nothing about unmarried couples.* For most people, your boyfriend or girlfriend has NO power to make financial or health care decisions for you. If you were in an accident and unable to make decisions for yourself, your beloved would be pushed aside for “next of kin” to step in and make decisions. Even if you are in a long-term relationship or live together, your partner has no right to inherit anything from you. This includes property that you currently use together.

(*Note this does not apply to a Registered Domestic Partner in California, which is included in the definition of “marriage” for the purpose of this article.)

How Can You Respond?

An easy solution with regard to assets is to own “jointly” with your partner. Bank accounts are a great example. If I have an account and my girlfriend’s name is also on the account, the law presumes I mean her to receive the account balance when I die. She also can access the account at any time while we are both living, regardless of whether or not I’m incapacitated. A step farther is to name someone as the beneficiary of an account, which can go beyond bank accounts and include life insurance and retirement accounts. However, due to tax issues, we don’t generally recommend that non-married couples own real estate together.

While this helps, it does not address the issue of a medical situation that comes up unexpectedly. There is an obscure legal doctrine known from a case called Marvin v. Marvin (involving the actor Lee Marvin and his longtime girlfriend). It involves mutual pledges of ongoing support and usually involves couples who have cohabitated for a long time without getting married. It’s rare, strange, and may be a visible example of the old law school saying, “hard cases make bad law.” However, there is an alternative to forging a difficult and complicated path like this one.

What Do Wise Clients Do?

Instead of relying on sloppy “planning,” you can prepare documents (like a Trust and financial Power of Attorney) that give your sweetheart the authority to act for your benefit and make them a beneficiary of all or a part of your assets. A good estate plan crafted by knowledgeable professionals is essential for taking care of your nonmarried partner.

Our clients who choose not to marry will often create individual estate plans. This stops other family members from legally excluding their partner. Couples can make each other the only beneficiary of their entire estate, or as noted above, certain portions. Specific assets can be handled properly with a well-drafted estate plan. A Trust can give a life estate to your sweetheart, so they don’t have to leave the house they were sharing with you. Plans can be updated as relationships change.

Need some help? Sweet! Law Offices of Mark E. Lewis & Associates can craft a plan to meet your needs. Contact us today.