9 Estate Planning Tips for Unmarried Couples

Not all couples want to be married, but there are some legal benefits that come with a government-recognized union. Unmarried couples should consider actions they can take to give their partner the legal and financial benefits that can be assumed when a couple is married. 

Are you thinking that because you live together, you are common law married? In reality, few states recognized common law marriage, and those that do have specific requirements – it’s not necessarily enough to live together. It’s best to take all steps necessary to ensure that your partner is recognized as someone who can speak on your behalf for legal, medical and financial decisions. 

1. Set Up a Durable Power of Attorney (POA)

Durable Power of Attorney gives someone else permission to handle financial and legal decisions on your behalf if you are unable to do so yourself, such as the event of an accident or medical situation. 

All couples should have a document granting this power to each other, but because a spouse is next-of-kin, decision-making typically falls to them without formal documentation when the need arises. For unmarried couples, recognizing each other as durable power of attorney can be very important where there might be some confusion as to who can make these decisions; next-of-kin may be a parent, sibling or adult child. 

2. Create a Living Will With Health Care Proxy

A living will, or advance directive, is a legal document that provides directions and guidance about your health care wishes. These are incredibly important should you become incapacitated and are no longer able to make decisions about what you’d like to happen in the event you need a medical intervention. 

As part of creating a living will, you should name a health care proxy who can make medical decisions on your behalf if you are unable. Naming your partner ensures that they are able to discuss medical care with professionals, which is a violation of HIPAA if they are not your health care proxy, and make decisions on your behalf. Like with durable power of attorney, failing to name your partner means that medical professionals will turn to next-of-kin for these decisions. 

3. Establish Joint Ownership of Property

Joint ownership of property occurs when the names of multiple parties are on the property. When couples are married, any property acquired during the marriage generally becomes joint property. This isn’t the case with unmarried couples; both partners need be named on the deed or title to be co-owners.  

Joint tenancy with right of survivorship is a way to own property in which both partners have equal rights to the asset, such as the home. Should one partner pass away, their share of the property automatically passes to the surviving owner without probate. Tenancy in common is another way to own property in which the deceased person’s share goes to their heirs. Defining in the property deed what an unmarried partner’s rights are to the property after one person’s death is an important legal matter.  

4. Create a Cohabitation Agreement

A cohabitation agreement is a legal contract outlining responsibilities and rights between an unmarried couple should the relationship end or one partner passes away. It’s similar to a prenup for married couples and should include details like how property and debt would be distributed, how minor children will be cared for and expectations for ongoing financial support (such as child support or partner support). This may be especially important in blended family situations where each partner has assets and/or children prior to entering the relationship.

5. Purchase Life Insurance

Legal spouses have some financial rights after death that unmarried partners do not, such as access survivor Social Security benefits. Life insurance can help fill the gap for unmarried partners, ensuring that the surviving individual will have financial support. 

6. Name Your Partner as a Retirement Beneficiary

Retirement accounts have named beneficiaries who would receive the funds if the account holder passes away. It’s important to designate unmarred partners as a retirement beneficiary if you want that money to go to them; in the event no one is named, the assets would enter the estate and go through probate, which could result in your wishes not being met. Unless you have a will or legal documentation, an unmarried partner may be passed over during the probate process in favor of children, parents or siblings. 

7. Be Aware of Requirements for Inherited Retirement Accounts

If you are named on a retirement account, make sure you understand the requirements around those specific accounts. For example, if you inherit an IRA from a non-spouse, you must deplete the funds within 10 years, according to IRS rules. 

8. Name Your Partner as Executor of Your Will

A will is a critical legal document outlining your wishes for your assets; even if you don’t feel you need one because you’ve made your wishes clear, officially documenting them in a will can help prevent misunderstandings, confusion and disagreements. For unmarried couplies, including a partner in the will is important

The executor of your will is responsible for carrying out your final wishes and ensuring that your property is distributed appropriately based on your designations. Your executor should be someone  you trust and who you are confident can execute the duties required; naming your partner ensures that your executor is someone who you are close to. 

9. Understand Your Estate Tax Liability

Even before reaching the estate planning phase, tax-free transfer of assets is limited by the annual gift exclusion ($19,000 in 2025), potentially making it more difficult to gift assets or to arrange ownership of assets in a way that is the most tax-advantaged. 

There are some estate tax benefits available for married couples that unmarried partners are not eligible for. The first is that there are no limits on tax-free transfer of assets between married spouses; this means that when one spouse passes away, the other can inherit the entire estate with no federal tax implications. Because unmarried partners are not eligible for this benefit, the surviving partner may be subject to estate taxes if the inheritance exceeds the federal exemption ($13.99 million in 2025).

Assemble Your Team

As you think about your estate plan, assemble a team that you trust will work for you. A Farm Bureau agent or financial advisor can work with your attorney, CPA and other professionals to help you prepare for the future.