Who Gets Your Estate If You Never Marry?

Marriage is a legally binding contract that grants spouses several rights and benefits. These include the right to spousal support and a fair division of property, assets, and debts in the event of a divorce, as well as tax benefits and the ability to be named next of kin.

Unmarried couples, however, do not have the same legal rights as married couples. They may have limited or no rights in relation to their partner and are not entitled to inheritance unless specified in a will or living trust.

Unmarried couples can achieve similar legal protections through various legal documents, such as a Power of Attorney, Health Care Directive, Cohabitation Agreement, and Last Will. These documents can help unmarried couples protect their assets, health care, money, and more. For example, a Power of Attorney allows one partner to make financial or health care decisions on behalf of the other, while a Cohabitation Agreement outlines separate and shared assets, debt obligations, and spousal support payments in the event of a breakup.

It is important to note that the laws regarding unmarried couples vary from state to state, and some states in America do not formally recognize common-law marriages.

Inheritance rights

Inheritance laws vary from state to state, and they can be complex. If you are single and never married, your closest relatives may have a right to claim part of your estate. If you die without a will, your estate is divided among your closest relatives according to your state's intestate statutes. Generally, this means your assets are divided among your parents or other more distant relatives.

In some states, if you have no spouse or children, your estate is divided among your grandchildren. In other states, children may be entitled to claim a share of a deceased parent's property. For example, in Florida, the constitution prohibits the head of a family from leaving their residence to anyone other than a spouse or minor child if either is alive.

Most states have laws to protect against accidental disinheritance. These laws usually apply if a child is born after the parent made a will that leaves property to siblings, and the parent never revises the will to include that child. In this case, the overlooked child may have a right to a significant part of the parent's assets. In some states, these laws also apply to grandchildren.

If you are single and never married, it is important to understand your state's inheritance laws and how they may affect your estate plan. To ensure that your assets are passed to the people you intend to receive them, careful planning is necessary.

Tax benefits

Being single and never married has its own set of tax benefits. Here are some of the key advantages:

Lower Tax Bracket:

Single individuals often fall into lower tax brackets compared to married couples filing jointly. This means that as a single person, your taxable income may be taxed at a lower rate, resulting in a smaller tax bill.

Standard Deduction:

The standard deduction for a single person is the same as for someone who is married and filing separately. In tax year 2022, the standard deduction for singles was $12,950. By remaining unmarried, you can claim this deduction for yourself, which could result in a higher tax benefit.

Itemized Deductions:

If you have significant itemized deductions, such as mortgage interest, state and local taxes (SALT), or medical expenses, you may benefit from filing as a single person. Singles with itemized deductions exceeding the standard deduction can claim these expenses to reduce their taxable income.

IRA Contributions:

Single taxpayers who are not working generally cannot contribute to an Individual Retirement Account (IRA). However, as a single person, you have the flexibility to make IRA contributions based on your own income. This allows you to save for retirement and potentially reduce your taxable income.

Tax Credits:

Certain tax credits are available specifically to singles or have different income limits for married couples. For example, the Earned Income Tax Credit (EITC) has lower income limits for married couples, so remaining single may make you eligible for this credit if your income falls within the specified range.

Estate Planning:

As a single person, you have more control over your estate planning. You can decide how to distribute your assets and to whom, without the automatic spousal inheritance rules that come into play with marriage. This gives you greater flexibility in deciding how your wealth is passed on.

While marriage has its own set of tax benefits, being single and never married also has its advantages. These tax benefits for singles provide opportunities to optimize your tax strategy and potentially reduce your tax liability.

Health insurance benefits

• Dental and optical services
• Remedial massage therapy
• Physiotherapy
• Chiropractic treatments
• Dietitian support
• Psychology

Private health insurance for singles can also help you avoid public hospital waiting lists for specific elective procedures. With a singles health insurance policy, you can recover in your own private room while waiting for and recovering from your elective surgery, and you can generally choose your doctor.

Depending on your state, private hospital cover can pay for emergency ambulance transportation. In some states, you can subscribe directly to the state's ambulance service or choose to cover it with private health cover.

If you are young and healthy, you may want just the basics, which means taking out a low level of hospital cover and perhaps an extras policy for a few key out-of-hospital services. As you age, your health needs will change, so it is important to revisit your health insurance and consider if your cover is still suitable for your current health and lifestyle.

Visitation privileges

Establishing Paternity

For unmarried fathers, the first step in securing visitation privileges is establishing paternity. This involves legally proving that the father is the biological parent of the child, which can be done through a voluntary acknowledgment of paternity affidavit or, in disputed cases, a court-ordered DNA test. Establishing paternity is crucial for unmarried fathers to assert their parental rights.

Negotiating a Parenting Agreement

Once paternity is established, unmarried parents can negotiate a parenting agreement, also known as a parenting plan or timesharing schedule. This agreement outlines the specifics of custody and visitation, including the time each parent spends with the child, decision-making authority, and financial arrangements. Unmarried parents can work together to create a plan that meets the child's needs and promotes their well-being.

Involving the Court

If unmarried parents are unable to reach an agreement on their own, they may need to involve the court system. The court will consider the best interests of the child and make decisions regarding custody and visitation arrangements. The court may also appoint a guardian ad litem, a neutral third party who will evaluate the situation and make recommendations.

Types of Custody Arrangements

Custody arrangements can vary, and unmarried parents may be granted joint physical custody, shared legal custody, or a combination of both. Joint physical custody involves the child spending approximately equal time with each parent, while shared legal custody gives both parents a say in important decisions about the child's upbringing. The court will determine the specific arrangement based on the circumstances of each case.

Modification of Visitation Privileges

It's important to note that visitation privileges are not set in stone and can be modified after the initial arrangement. If circumstances change, or if the original arrangement is not in the best interests of the child, either parent can request the court to modify the visitation privileges. This ensures that the arrangement remains practical and adaptable to the evolving needs of the child and the parents.

In conclusion, visitation privileges for unmarried individuals provide a framework for non-custodial parents to maintain a relationship with their children. By establishing paternity, negotiating parenting agreements, and involving the court when necessary, unmarried parents can ensure that their children's best interests are prioritized while fostering a healthy parent-child relationship.

Power of attorney

Financial Power of Attorney

A financial power of attorney allows the person you designate to make financial decisions on your behalf if you are incapacitated. This can include conducting bank transactions, managing and investing your money, purchasing insurance, buying or selling property, and operating your business. It is particularly important if you have property or an income, or if you fear that health problems may impact your ability to handle your financial matters in the future.

Medical Power of Attorney

A medical power of attorney, also known as a healthcare directive or living will, outlines the types of medical treatment you wish to receive if you become unable to communicate or make your own healthcare decisions. This includes your desired quality of life, end-of-life treatments, and any treatments you do not want to receive. The person you designate as your proxy will have the authority to make healthcare decisions for you and ensure your wishes are respected.

Why Single People Need Power of Attorney

As a single person, it is especially important to have power of attorney documents in place. Without them, your biological relatives will make decisions on your behalf, and they may not respect your partner's input. These documents ensure that your partner has a say in your medical and financial affairs and can avoid potential misunderstandings.

Additionally, in the absence of power of attorney, your partner may have to go through costly and time-consuming court proceedings to gain control over your assets or make medical decisions on your behalf. This adds financial and emotional burdens during an already stressful time.

By designating power of attorney, you can ensure that someone you trust will manage your affairs and that your wishes will be followed. It is a way to protect yourself and your partner, giving them the same rights as a married spouse in these situations.

Frequently asked questions