1. Unmarried partners are not protected by state and federal laws when it comes to inheritance, taxes, and decision-making powers.
2. Without estate planning, the state’s intestacy statute will determine who receives money and property, and unmarried partners may receive nothing under the law.
3. If a beneficiary is not designated on a life insurance policy or retirement account, the money may go to the estate or family members instead of the unmarried partner. 1. Unmarried partners who are both US citizens can only give up to $15,000 per year to each other without having to worry about federal gift tax.
2. If unmarried partners give more than the annual exclusion amount, they need to file a federal gift tax return to report the excess.
3. Unmarried partners can leave money or property to each other at death, but it counts towards the $11.7 million lifetime exclusion amount. If this amount is exceeded, an estate tax is due when the giver dies. – Review beneficiary designations for accuracy and proper submission.
– Review ownership of accounts and property to ensure both partners have access in case of incapacitation or death.
– Consider a joint ownership agreement for real estate to protect both partners in case of disagreements.
https://www.henlaw.com/news-insights/why-unmarried-partners-should-care-about-estate-planning/
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