Non-traditional Families

Unmarried Partners and Death Issues

Real property

When unmarried partners own real property as joint tenants, and one partner dies, there is a risk that the entire value of the house will be included in the deceased partner's estate for purposes of determining whether estate taxes are owed. Including the entire value of the house in the deceased partner's estate may put that partner over the annual applicable exclusion amount.

However, if a legally married couple owns real property as joint tenants, the first spouse to die will have only one-half of the value of the house included in his or her estate for purposes of determining whether the estate will be subject to federal estate taxes.

In order for non-married partners to avoid having the entire value of the home included in the estate of the first to die, the surviving partner will need to be able to show proof that they contributed toward the purchase of the home. Before titling real property as joint tenants between unmarried partners, you should confer with an attorney.

If your partnership ends

If you have included your ex-partner in your estate planning, or nominated him or her as a guardian or conservator, you must change your will and other estate planning documents to stop your ex from inheriting your property.

If you have named your ex as the beneficiary of life insurance, disability insurance, retirement plans, bank accounts or any other assets, you should remove that person as the beneficiary unless you wish for them to receive your property at your death.