The number of unmarried couples in the State of Missouri is 101,582, of which 9,428 are same-sex couples. Estate planning can be a confusing and complicated enough for married couples, but making appropriate planning decisions when you aren’t legally joined and don’t have the rights that a married couple has can raise further complications. Many times an unmarried couple will delay planning because they don’t have children. However, delaying your planning may result in the State of Missouri determining what happens to your assets, and your partner being left with less than you wished, or nothing at all.
If you are in a committed unmarried relationship, you should consider having the following documents to protect the rights of you, your partner and your children:
DOMESTIC PARTNERSHIP OR COHABITATION AGREEMENT
A cohabitation agreement explains the contractual legal rights and responsibilities of each partner when a couple decides to form a long-term committed relationship. Because at this time same-sex partners cannot legally marry in Missouri, a cohabitation agreement is an important legal document for gay, lesbian, bisexual and transgender couples. This document is equally important for different-sex couples who choose not to marry for whatever reason.
In a cohabitation agreement, you and your partner can determine how a particular piece of real or personal property is to be owned or divided in the event of the termination of the relationship. If property is titled in joint names with right of survivorship, then the property will pass to the surviving joint owner upon death of one partner. Many times division of the property prior to death will be based upon the amount the parties contributed for purchase and improvements. A cohabitation agreement, however, can detail exactly the percentages of ownership and contributions.
A cohabitation agreement may also establish whether a gift or inheritance made to one partner by another party is held jointly or individually, who is responsible for household duties and chores, and how income is to be shared. The agreement may also provide for payments in the event of a separation, for instance if one partner is giving up a career to stay at home with children.
The State of Missouri has not yet directly addressed the issue of cohabitation agreements between same-sex couples, however, the Supreme Court has held that unmarried cohabitants may lawfully contract concerning property, financial, and other relevant matters; Hudson v. DeLonjay , 732 S.W.2d 922 (Mo. Ct. App. 1987).
WILL and/or REVOCABLE TRUST
While a married spouse is entitled to at least a portion of her spouse’s estate upon his death, and unmarried couple has no such rights. That’s why you should execute a Will or Revocable Trust that clearly indicates your wishes as to who you want to administer your estate upon your death, inherit your assets, and care for your children.
IRREVOCABLE TRUST
While married couples are afforded the benefit of transferring property to their spouse estate tax free, unmarried couples do not have the same benefit. Using an irrevocable trust may help committed unmarried couples to pass assets from their estate on to a surviving spouse without the imposition of estate taxes.
POWERS OF ATTORNEY
A power of attorney can name your partner as your agent to handle financial affairs, and make your medical decisions on your behalf in the event you cannot do so yourself. Without this type of agreement, your partner has no legal authority to make your decisions for you.
Contact me, a dedicated Saint Louis County Estate Planning Attorney.
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Jennifer A. Coke, Attorney at Law, at The Coke Law Firm in St. Louis, MO, serves clients throughout St. Louis City and St. Louis County including Tower Grove, the Central West End, the Loop, and cities of Chesterfield, Creve Coeur, West Port, Ballwin, Kirkwood, Shrewsbury, Glendale, Clayton, Brentwood, University City, Sunset Hills, Webster Groves, Town & Country and many other local municipalities in Missouri.
The Coke Law Firm
Jennifer A. Coke, Attorney at Law
