A report from Epoch Times on December 27, 2025: A registered financial planner and wealth advisor, Jared Gagne, from Claro Advisors, a financial investment company in the United States, recently highlighted the legal differences concerning long-term unmarried partners in romantic relationships. From a legal perspective, they are not considered spouses; a status that may seem insignificant in daily life but could have significant implications for the surviving partner in the event of one partner’s death.
Gagne pointed out that the deceased partner might wish for their partner to inherit some or all of their assets, but without the automatic protections that come with traditional marriage, the law does not automatically recognize them as a family unit.
He emphasized that the law does not recognize them as a default unit, and in the absence of a will when one partner passes away, state laws typically distribute assets to blood relatives rather than the surviving partner with whom they shared a life and possibly property.
To avoid potential complications in such situations, unmarried partners should take proactive steps such as:
Firstly, signing a durable power of attorney, a legal document that allows the principal to authorize an agent to make decisions on their behalf if they become incapacitated.
John Hixson, a senior advisor at FMP Wealth Advisors in Lake Charles, Louisiana, emphasized the importance of preparing this crucial document well in advance. It involves arrangements for the event of incapacity, allowing both partners to authorize each other to manage financial and medical matters if either partner loses the capacity to make decisions.
Medical durable power of attorney enables a partner to make medical decisions on behalf of the other if they are unable to make decisions for themselves. This differs from a living will which outlines a person’s wishes regarding life-sustaining treatment or end-of-life care.
Financial durable power of attorney authorizes a partner to manage the other’s finances and bank accounts in similar circumstances.
Some financial institutions may require specific legal forms to be completed by the partners, and some investment custody firms may not recognize durable powers of attorney unless specific documentation is attached to the partner’s account.
Secondly, drafting a will, a standard document that outlines who the person wishes to inherit their assets such as individual retirement accounts, health savings accounts, and life insurance policies, among others.
In the absence of a will, state courts will distribute all assets according to state laws, typically to the closest living family members. However, certain assets like retirement accounts with designated beneficiaries will bypass probate, as will life insurance and annuities. Health savings accounts should also have designated beneficiaries.
Gagne emphasized the importance for unmarried partners to review these forms, ensuring their partners are specifically designated as beneficiaries where appropriate, and removing previous beneficiaries (such as former spouses).
Failure to do so may result in these funds being included in the person’s estate proceedings, requiring will probate. Probate can be a time-consuming process where the court verifies the will, if one exists, after the person’s passing. Some states allow simplified probate procedures for small estates or even exempt them from the process entirely.
Lastly, setting up a trust for individual bank accounts and securities accounts can ensure funds are transferred according to one’s wishes posthumously. “Transfer on death” or “payable on death” designations can be set up in certain circumstances. Regular deposits can also have such designations.
If a person wishes for their partner to inherit their property and the property title is solely in their name, they must explicitly state their intentions in their will. They can also establish a revocable living trust to place their property and other assets that may require probate into the trust, allowing for management during their lifetime and direct transfer to designated beneficiaries without the need for probate proceedings.
According to the latest statistics from the U.S. Census Bureau, around 135 million households exist in the United States, with married couples accounting for less than half, at 47%, down from about 66% in 1975 with over 71 million households at that time.
Furthermore, based on the recent census data, in 2024, approximately 9.5 million households were headed by unmarried partners, whereas married couples headed around 61.4 million households.
Data from the National Center for Family and Marriage Research at Bowling Green State University shows that in 2022, there were 4.6 million individuals aged 50 and above cohabiting with partners without being married, a significant increase from less than one million in 2000.
(Adapted from a CNBC report)