Skip to content
Laird Norton Wealth Management
  • Services
          • Wealth Planning
            • Business Owner
            • Equity Compensation
            • Estate Strategies
            • Philanthropic Giving
            • Tax Strategies
          • Investment Management
            • Tax-Aware Investing
            • Risk Management
            • Alternatives & Private Market
            • Impact Investing
          • Trust Services
            • Beneficiary Services
            • Family Legacy
            • Trust Administration
            • Trust Benefits
            • Understanding Trusts
          • NonProfit Clients
            • Request RFP Participation
  • About
          • About LNWM
            • Fiduciary Financial Advisor
            • How We Help
            • Our Team
            • Corporate Social Responsibility
            • Careers
            • Community
            • Board of Directors
            • FAQs
        • two people in a kayak on water
  • Insights
        • Blog

          Top-of-mind at LNWM and elsewhere.

          Papers

          Expert insights and analysis.

          Videos

          See what we're up to.

          Media

          Our published work and media coverage.

  • Contact
Search Icon
Client Login
mobile-login

Home » Insights » Family and Finance » The Legal Dangers Of Living Together

The Legal Dangers Of Living Together

Independent Media | Family and Finance | September 3, 2019 (February 25, 2020)
This article was written by an independent media source and selected by LNWM for our blog readers. LNWM provides this third-party information for informational purposes only and has not verified the accuracy or completeness of such. In addition, LNWM is endorsing neither the content nor the author of the commentary.

For couples over 50, living together has a lot of appeal and is on the rise. In fact, the number of unmarried couples who are 50+ shot up 75% between 2007 and 2016, according to the U.S. Census Bureau. One likely reason: many have experienced at least one difficult divorce, so they’re gun-shy about remarrying and potential legal entanglements if things don’t work out. Unfortunately, however, as with many things in life, what seems simple — living together — is often quite complex. Unmarried couples, of all sexual orientations, can face a variety of problematic and emotionally difficult issues because estate planning laws are written to favor married couples.

Living Together: ‘Legal Strangers’
Consider for example, what will happen if an unmarried couple doesn’t plan for the possibility that one partner will no longer be able to manage his or her health care due to a serious medical issue. At that point, the law will treat the other partner very harshly.

Without appropriate advance planning, courts are generally forced to rely on blood kin to fill financial and medical decision-making roles.

For example, if a married person is rushed to the hospital unconscious and hadn’t prepared a health care power of attorney giving the other spouse the right to make medical decisions on his or her behalf, that husband or wife will probably be allowed to make them anyway. But if an unmarried couple is in this same situation, the law will consider them to be “legal strangers.” Therefore, the partner who is not incapacitated will have no right to make medical decisions on behalf of the other.

Now, certainly there might be a hospital willing to bend the rules in this situation, but it’s unlikely. By doing so, the hospital would expose itself to liability issues should a blood relative of the incapacitated person — a sibling or an adult child, for example — challenge the medical facility’s decision.

When Money Is Imbalanced
Another serious financial problem could arise when an unmarried partner becomes incapacitated without proper estate planning. Say the couple consists of an older, wealthier partner and someone substantially younger and they have an understanding that the older partner will support their lifestyle. Then, suddenly, the older partner becomes ill and can no longer manage the couple’s finances.

Under such a scenario, unless the older partner had given the younger one financial power of attorney, that older partner’s assets will probably be frozen by his or her financial institutions; the younger partner won’t be able to access them. Furthermore, a court action might be necessary to unfreeze the assets, which would take time and money.

Without appropriate advance planning on the part of the ill partner, courts are generally forced to rely on blood kin to fill financial and medical decision-making roles. The younger partner would lose control of those assets and could even be evicted if the couple’s home is owned solely by the partner who is ill and no longer able to manage their finances.

Both of those scenarios could have been avoided if the unmarried partners had executed key estate-planning documents while they were healthy and competent, including a durable power of attorney, a medical power of attorney and a living will (which applies to end-of-life decisions). Many states call the latter two documents advanced health care directives or health care proxies. A living trust could also have helped avoid problematic financial issues.

The Need for a HIPAA Release
Unmarried couples also need to get signed HIPAA releases. HIPAA is a federal health privacy law that prevents medical facilities and health care professionals from sharing a patient’s medical information with anyone not designated on the person’s HIPAA release form. You can find HIPAA release forms online, but it’s best to get them from estate planning attorneys to ensure they’re up-to-date and correct.

Unmarried couples can also face difficult legal situations when one of them dies. Without the proper legal documents, the surviving partner won’t be entitled to make decisions regarding the donation of the deceased’s organs or arrange for the person’s burial or cremation. These problems can be avoided either by pre-planning through a funeral provider or — if their state allows — by signing a document giving the other partner the right to make final arrangements on behalf of the deceased.

Living Together and Then Dying Without a Will
Here’s another potential problem for unmarried couples: If the deceased failed to write a will or set up a living trust, the state will distribute his or her assets and what is known as intestate laws (for people who die without wills) don’t recognize a surviving unmarried partner. Therefore, he or she won’t be legally entitled to inherit any of the assets. Instead, they’ll go to the deceased’s blood relatives, such as his or her children or siblings.

By contrast, if a married partner dies without a will or a living trust in a community property state, the surviving spouse is automatically entitled to inherit as much as half the value of the deceased’s assets. (Those states are  Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.) In other states, the surviving spouse would be entitled to receive an “elective share,” a part of the estate that the surviving spouse can “elect” or choose to receive.

Home, Not-So-Sweet Home
Then there’s the matter of a couple’s home.

Although laws in some states give a surviving spouse the automatic right to occupy the couple’s home for life, that’s not the case for a surviving unmarried partner.

An unmarried couple could avoid this problem if the partner who owns their residence gives the other this right by specifying it in their will or living trust. Also, in some states, if the unmarried homeowner has a Transfer on Death deed, the home would automatically go to the other partner. One caveat: if the owner partner became incapacitated, the only way the other one would have a legal right to remain in the home during the incapacity would be if this was spelled out in a living trust.

401(k)s, Life insurance, and IRAs
What about retirement funds and life insurance proceeds?

Sadly, if an unmarried partner-owned assets like a 401(k) or an employer-sponsored group life insurance policy and died, the other partner won’t be legally entitled to those assets unless he or she was designated as the beneficiary. Otherwise, the assets will go to the deceased’s blood relatives. Of course, if the couple were married, the surviving spouse would automatically be entitled to funds in the deceased’s 401k and proceeds from the life insurance, unless someone else was named a beneficiary.

Beneficiary designations also control Individual Retirement Accounts (IRAs) and privately-owned life insurance. So, unless the unmarried partner is named as the beneficiary for those, he or she won’t be entitled to those funds either.

The lesson for couples living together: protect your finances and your emotional health by getting your estate planning documents in order.

This article was written by Next Avenue from Forbes and was legally licensed by AdvisorStream through the NewsCred publisher network.

  • Share:

Sign Up For Navigator

Get our quarterly insights on investments, wealth planning, taxes and trusts.

Site Logo in footer footer logo
facebook Twitter Opens a news tab Linkedin Opens a news tab Youtube Opens a news tab

About

  • Board of Directors
  • Careers
  • Community
  • Contact
  • FAQs
  • Our Team
  • Sign up for Navigator

Services

  • Investment Management
  • Sustainable Investing
  • Tax Strategies
  • Trust Services
  • Understanding Trusts
  • Wealth Planning

Address

  • Laird Norton Wealth Management 801 Second Avenue, Suite 1600
    Seattle, WA 98104
    United States
  • 206.464.5100
  • 800.426.5105
© 2023 Laird Norton Wealth Management. All rights reserved.
Form CRSOpen PDF in a new tab Legal Terms and Conditions Privacy Policy
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to customize your settings.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
__cf_bm30 minutesThis cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
bcookie2 yearsLinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie2 yearsLinkedIn sets this cookie to store performed actions on the website.
langsessionLinkedIn sets this cookie to remember a user's language setting.
lidc1 dayLinkedIn sets the lidc cookie to facilitate data center selection.
UserMatchHistory1 monthLinkedIn sets this cookie for LinkedIn Ads ID syncing.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
_uetsid1 dayBing Ads sets this cookie to engage with a user that has previously visited the website.
_uetvid1 year 24 daysBing Ads sets this cookie to engage with a user that has previously visited the website.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gcl_au3 monthsProvided by Google Tag Manager to experiment advertisement efficiency of websites using their services.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
_hjAbsoluteSessionInProgress30 minutesHotjar sets this cookie to detect the first pageview session of a user. This is a True/False flag set by the cookie.
_hjFirstSeen30 minutesHotjar sets this cookie to identify a new user’s first session. It stores a true/false value, indicating whether it was the first time Hotjar saw this user.
_hjIncludedInPageviewSample2 minutesHotjar sets this cookie to know whether a user is included in the data sampling defined by the site's pageview limit.
_hjIncludedInSessionSample2 minutesHotjar sets this cookie to know whether a user is included in the data sampling defined by the site's daily session limit.
_hjTLDTestsessionTo determine the most generic cookie path that has to be used instead of the page hostname, Hotjar sets the _hjTLDTest cookie to store different URL substring alternatives until it fails.
_omappvp11 yearsThe _omappvp cookie is set to distinguish new and returning users and is used in conjunction with _omappvs cookie.
_omappvs20 minutesThe _omappvs cookie, used in conjunction with the _omappvp cookies, is used to determine if the visitor has visited the website before, or if it is a new visitor.
calltrk_session_id1 yearThis cookie is set by the Provider CallRail. This cookie is used for storing an unique identifier for a user browser session. It is used for tracking the number of phone calls generate from the website.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
_mkto_trk2 yearsThis cookie, provided by Marketo, has information (such as a unique user ID) that is used to track the user's site usage. The cookies set by Marketo are readable only by Marketo.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
MUID1 year 24 daysBing sets this cookie to recognize unique web browsers visiting Microsoft sites. This cookie is used for advertising, site analytics, and other operations.
test_cookie15 minutesThe test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
_ce.gtldsessionNo description
_dc_gtm_UA-41670453-11 minuteNo description
_hjSession_275188330 minutesNo description
_hjSessionUser_27518831 yearNo description
AnalyticsSyncHistory1 monthNo description
BIGipServerab10web-nginx-app_httpssessionNo description
BIGipServerab47web-nginx-app_httpssessionNo description
calltrk_landing1 yearThis is a functionality cookie set by the CallRail. This cookie is used to store the landing page URL. It helps to accurately attribute the visitor source when displaying a tracking phone number.
calltrk_nearest_tld9 years 10 months 8 daysNo description
calltrk_referrer1 yearThis is a functionality cookie set by the CallRail. This cookie is used to store the referring URL. It helps to accurately attribute the visitor source when displaying a tracking phone number.
CookieLawInfoConsent1 yearNo description
li_gc2 yearsNo description
SAVE & ACCEPT
Powered by CookieYes Logo