I’m Not Married. Do I Still Need an Estate Plan?
Approximately half of America’s population over the age of 16 is unmarried. While much of the discussion involving estate planning focuses on married couples, this topic is just as important for a single person. In fact, many times estate planning for singles and unmarried couples may be even more important than for their married counterparts. Why? Because the default laws governing estates in Maryland often work poorly for people without a spouse and may not adequately provide for a significant other or unmarried partner. Having a cohesive and well-drafted estate plan will ensure that you protect and provide for those you truly care about upon your death.
3 Keys to Proper Estate Planning for Singles and Unmarried Couples
1. Expect that your estate plan will evolve over time.
It is important to understand that your estate plan can, and likely will, change over time. You may eventually experience life changes – like getting married, having children, or buying your first home – that will necessitate changes to your estate plan. Although life is constantly changing, it is best to get in the driver’s seat early when it comes to estate planning.
For more information on the basics of estate planning, click here.
2. Whatever you do, don’t die without a will.
If you’re a resident of the State of Maryland and you die without a will – referred to as intestate – all of your possessions, in your name solely, will be distributed according to the intestacy laws of the State Maryland. While Maryland laws have a married person’s assets go to their surviving spouse and children, the same is not true for unmarried individuals. Generally, Maryland law provides that a single person’s assets are passed on to their next of kin. This includes children, parents, and siblings. Noticeably absent for many unmarried people are provisions providing for a long-term boyfriend or girlfriend. And, if there are no surviving close relatives, the assets will likely go to the state. To avoid the state dictating what happens to your assets, it is vital that you have a properly drafted estate plan put together.
3. How you own things is very important
There is an increasing number of couples that are not getting married, and other individuals who are deciding to remain single. For this group, estate planning is important because taxes and other financial benefits tend to favor those who have tied the knot. It also brings up the need to be very careful about how assets are titled.
How your assets are titled and how the beneficiary designations are prepared will impact how your assets will be distributed upon your passing. The most common ways to hold title to property is tenants in common (TIC) and joint tenants with rights of survivorship (JTWROS). Property that is held as TIC means that each owner owns an interest in the property. At the death of one owner, that interest is transferred according to his or her estate plan, or intestate succession if there is no estate planning. This is not an ideal way for unmarried couples to own property because at the death of one of them, the other person will end up as joint owner with the deceased’s next of kin. JTWROS is one option for unmarried couples because when one owner dies, the property automatically transfers to the surviving owner. There are several other planning strategies that can be beneficial for unmarried individuals – involving tax benefits, retirement plans, wills and trusts, and healthcare powers of attorney – if the right estate plan is carefully crafted.
Contact an Estate Planning Attorney to Get Started
If you do not have an estate plan yet, contact Andre O. McDonald, a knowledgeable estate planning attorney serving clients throughout Howard, Montgomery, Baltimore, and Prince George’s Counties. Whether you are married, single, or cohabiting with a partner, McDonald Law Firm can help you craft a comprehensive estate plan that is tailored to your personal situation and assists you in protecting those you care for the most. Give us a call today at (443) 741-1088 to schedule a consultation.
DISCLAIMER: THE INFORMATION POSTED ON THIS BLOG IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND IS NOT ENTENDED TO CONVEY LEGAL OR TAX ADVICE.