Estate Planning for Unmarried Couples in Arizona

Estate planning is the legal process used to control what happens to your assets and personal matters while you’re living and upon your death. Estate planning for unmarried couples in Arizona is especially important because the state doesn’t automatically grant them any rights to each other’s property or decision-making authority. This means that without proper documentation, your longtime partner could be legally barred from accessing your assets and be unable to carry out your final wishes.

If you and your partner are unmarried and looking to create an estate plan, contact an experienced Arizona estate planning lawyer today. Our experienced attorney and staff at CDM Law Firm help unmarried couples navigate the complexities of estate planning with personalized strategies tailored to your unique relationship and circumstances.

Estate Planning Challenges Faced by Unmarried Couples

Estate planning is more complex for couples who aren’t married since they don’t have the built-in legal protections that married couples automatically receive. When unmarried couples fail to create legal arrangements, one partner may be legally barred from making important decisions about the other’s healthcare, finances, or property distribution.

According to a 2024 study from Caring.com, 43% of the survey’s respondents reported that the main reason they have not engaged in estate planning is simply because they have not gotten around to it. Estate planning should be a priority for every individual and family, but it should especially be prioritized for unmarried couples, as they face increasing consequences if they fail to do so. The following challenges are particularly common for unmarried couples:

• No automatic inheritance rights. When no will exists, Arizona’s default inheritance laws channel all assets to legal family members, meaning an unmarried partner may not inherit anything, even if they lived together as a committed couple.
• Limited authority in emergencies. Partners who haven’t established legal documents such as a durable power of attorney or health care proxy may find themselves unable to access bank accounts, pay bills, or authorize medical treatment when their partner becomes incapacitated.
• Difficulty in protecting shared assets. While joint ownership helps transfer property, it may not be suitable for all assets and requires careful consideration.
• Unfavorable tax treatment. Unmarried couples don’t receive the same tax benefits as married couples, potentially resulting in higher tax burdens for the survivor.
• Guardianship issues for children. Naming a guardian through your will becomes essential when children are involved, particularly if your partner has no biological relationship to them. Without this designation, the court may decide guardianship.

Key Estate Planning Tools for Unmarried Couples

It is important to understand the key estate planning tools and how they apply to your circumstances as an unmarried couple.

• Last will and testament. A will enables you to clearly designate your partner as a beneficiary, name an executor to manage your estate, and establish guardianship for any shared children.
• Trusts. Revocable living trusts can offer benefits like avoiding probate and providing more control over how assets are distributed. A trust can ensure that your partner is provided for during their lifetime and then direct the remaining assets to other designated heirs.
• Durable power of attorney. This grants your partner the authority to handle your financial matters (paying bills, managing investments, etc.) if you become incapacitated.
• Healthcare power of attorney. This appoints your partner to make medical decisions on your behalf if you are unable to do so.
• Advance directive (living will). This outlines your preferences for end-of-life care and other medical treatments, guiding your partner and minimizing potential disputes.
• Beneficiary designations. Ensure your partner is listed as a beneficiary on accounts such as life insurance policies, retirement accounts, and payable-on-death (POD) bank accounts, as these designations often override provisions in a will.
• Joint ownership of assets. When unmarried couples own property as joint tenants with rights of survivorship, the surviving partner will automatically receive full ownership upon the other’s death without going through the probate process. While this arrangement offers convenience, it’s important to review the possible tax consequences with a qualified attorney before making this decision.
• Cohabitation agreements. Similar to a prenuptial agreement, a cohabitation agreement can outline each partner’s rights and responsibilities regarding finances, property, and asset division during the relationship and in the event of a breakup or death.

FAQs

Who Gets the House When an Unmarried Couple Splits Up in Arizona?

When an unmarried couple splits up, the person whose name is on the house title typically owns the property. If both names are on the title, they are considered joint owners, each with 50% interest. Arizona does not apply community property rules to unmarried couples, and there’s no legal framework for property division like in divorce. If they can’t agree, they may need to go to court, where factors like financial contributions and living arrangements will be considered.

What Is the Ideal Trust for an Unmarried Couple?

Creating individual revocable living trusts is typically the most effective estate planning strategy for unmarried couples. This allows each individual to maintain control over their own assets and specify how they wish to distribute them upon death while also providing for their partner’s needs. While joint trusts can be used, they often lead to more complex legal and financial issues for unmarried couples.

What Happens if Your Partner Dies and You Aren’t Married?

If your partner dies and you aren’t married, you may have minimal legal claim to assets, especially when no estate planning matters have been implemented. Since Arizona automatically channels inheritances to blood relatives, a devoted partner could be excluded. This makes professional legal guidance essential for unmarried couples who want to ensure they can be legally recognized and grant their partners’ wishes.

How Do Unmarried Couples Split Assets?

When unmarried couples separate, they generally keep the property they individually own. However, jointly owned assets, like a house or a bank account, are typically split. Disputes often arise regarding assets if one partner contributed significantly more or if there was an informal agreement to share ownership.

Hire an Estate Planning Lawyer From CDM Law Firm

At CDM Law Firm, we are committed to providing top-notch legal support. Our team ensures we are familiar with your specific goals and objectives, which are especially important as an unmarried couple in the estate planning process. If you are a local to Mesa, find our office at 4854 E Baseline Road, Suite 104.

Because navigating estate planning effectively can be more challenging for unmarried couples, having an estate planning lawyer is crucial. We can help you proactively establish legal protections and rights not automatically granted to you as an unmarried couple. Our team works to ensure your wishes are honored and your partner is protected in the event of incapacitation or death. Contact us today for a consultation and learn more about the estate planning process.