Estate planning is absolutely necessary for everyone, but it holds special importance for unmarried couples. Unlike married partners, unmarried couples do not benefit from the legal protections and default rights that come with marriage. In Arizona, which follows community property laws, this distinction becomes even more important. Without proper planning, your partner may be left out of important financial, medical, or inheritance decisions entirely. This guide will walk you through the steps of estate planning for unmarried partners living in Arizona.
Estate Planning for Unmarried Partners
Under Arizona law, unmarried partners are not considered next of kin. This means that if you pass away without a will or trust, your partner will not inherit your property automatically. Instead, your estate would be distributed according to Arizona’s intestate succession laws. A.R.S. § 14-2102 prioritizes biological relatives such as children, parents, and siblings. Therefore, your partner (no matter how long you’ve been together) will not be included unless explicitly named in your estate plan.
Moreover, unmarried partners have no automatic rights to make healthcare decisions for each other. Without the proper legal documents, your partner could be excluded from critical conversations about your medical care in the event of an emergency.
Key Estate Planning Tools for Unmarried Partners
To protect your partner and ensure your wishes are honored, consider the following estate planning documents:
Last Will and Testament
A will is a foundational estate planning document that allows you to specify who will inherit your assets after you pass away. In your will, you can name your partner as a beneficiary and outline what you want them to receive. You can also designate a personal representative (executor) to manage your estate. Without a will, however, Arizona’s intestacy laws will determine how your property is distributed; and your partner will not inherit anything unless named.
Revocable Living Trust
A trust provides a more comprehensive way to protect your assets and avoid probate. A revocable living trust allows you to transfer ownership of your assets into the trust while maintaining control during your lifetime. Upon your death, the trust ensures that your partner receives the assets you’ve designated for them without the delays and costs associated with probate. This is particularly useful if you own real estate or other significant assets.
Durable Power of Attorney
A durable power of attorney allows you to designate your partner to manage your financial affairs if you become incapacitated. This can include paying bills, managing investments, and handling other financial matters. Without this document, your partner may have to go through a costly and time-consuming court process to gain authority over your affairs.
Healthcare Power of Attorney and Living Will
In Arizona, a healthcare power of attorney allows you to appoint someone to make medical decisions on your behalf if you are unable to do so. Naming your partner as your healthcare agent ensures they have the authority to make critical decisions about your care. A living will, on the other hand, outlines your preferences for end-of-life care; such as whether you want life-sustaining treatments.
Beneficiary Designations
Certain assets, such as life insurance policies, retirement accounts, and payable-on-death bank accounts, allow you to name a beneficiary directly. By naming your partner as the beneficiary, you ensure they receive these assets without the need for probate. Thus, review and update these designations regularly to reflect your current wishes.
Special Considerations for Unmarried Couples in Arizona
Property Ownership
If you own property with your partner, you must clarify how it is titled. Joint tenancy with the right of survivorship ensures that the property automatically transfers to your partner upon your death. Without this designation, your share of the property will pass according to your will or Arizona’s intestate succession laws.
Guardianship for Minor Children
If you and your partner have children together, you’ll need to name guardians in your will to ensure their care. Without this designation, the court will decide who becomes their guardian, which may not align with your preferences.
Digital Assets
Don’t overlook digital assets, such as email accounts, social media profiles, and online banking. Include instructions for accessing these accounts in your estate plan. Also, consider using a digital asset inventory to keep track of usernames and passwords.
Steps to Create Your Estate Plan
- Assess Your Assets: Make a list of your assets, including real estate, bank accounts, investments, and personal property. Note any assets with designated beneficiaries.
- Consult an Estate Planning Attorney: Working with an experienced estate planning attorney in Arizona is highly recommended. This is especially true for unmarried couples with complex financial situations. An attorney can help you create a customized plan that reflects your unique needs and complies with Arizona law.
- Draft Essential Documents: Prepare your will, trust, powers of attorney, and other necessary documents with the help of your attorney.
- Review and Update Regularly: Life circumstances change, so review your estate plan every few years or after major life events, such as purchasing a home or the birth of a child.
Protecting Your Legacy
Estate planning is not just about preparing for the end of life; it’s about protecting your partner and ensuring your legacy is preserved according to your wishes. For unmarried couples in Arizona, this process is especially important because the law does not automatically recognize your relationship. By taking proactive steps to create a comprehensive estate plan, you can provide your partner with the financial and emotional security they deserve.
If you’re ready to begin your estate planning journey, consult a qualified estate planning attorney familiar with Arizona law. They can guide you through the process and help you build a plan tailored to your unique situation.
