Many couples remain in long-term committed relationships for years and even decades – often until one of them passes away. If you’re in one of those couples, you and your partner may feel like you’re married, but in the eyes of the law, you aren’t.
That means when one of you eventually passes away, the other may not be entitled to receive any of the other’s individual assets without proper planning. Even before that, your unmarried status could cause problems if one of you becomes seriously ill or injured and the other has to make decisions on their behalf or conduct financial transactions.
Virginia’s intestate succession law
If a person dies without a will, state law determines how their estate is passed down. Here in Virginia, as in other states, the assets go to people related to the deceased by blood, marriage or adoption, with those closest in lineage at the top.
In Virginia, surviving spouses get everything unless there are surviving children, in which case the estate is divided among them. If the deceased isn’t survived by a spouse or children (or grandchildren), any surviving parents, siblings and grandparents inherit their estate. If there are none, other living relatives will be sought. If none are found, the assets go to the state.
Non-relatives, no matter how close they were to the deceased, are nowhere in that line of succession. It’s possible to add your partner onto any accounts you don’t share as a payable-on-death (POD) beneficiary. You can add them to investment and retirement accounts, as well as a life insurance policy, as a designated beneficiary. However, this won’t cover all of your assets. The best way to do this is through a will or revocable living trust. Of course, your partner should do the same.
Having decision-making authority for one another
As noted above, it’s also important for unmarried partners to designate authority to each other in case one of them is ever incapacitated. This includes power of attorney (POA) over medical and financial decisions, which can help prevent conflicts with family during a time of crisis. So can creating an advance directive with your wishes for medical and other life-prolonging care.
Regardless of whether you want your partner to inherit most of your assets or not and whether you want them to be the decision-maker for you in an emergency, it’s wise to have an estate plan to codify your wishes. Even if you own all of your assets jointly, it’s critical to make sure they will be passed along as you intend after you’re gone. Working with an experienced estate planning professional can bring you valuable peace of mind.
