Love, Relationships, and Estate Plans
It’s February, the month of love. Relationships are the bedrock of our human experience on a day-to-day basis. Whether you are single, in a committed relationship, in a domestic partnership, soon to be married, married, soon to be divorced, or divorced, each relationship status significantly impacts estate planning. Many relationships come with automatic rights and privileges concerning estate plans, while others do not include rights automatically but can with appropriate estate planning.
Committed relationships come in many forms. Some may be temporary or on their way to another status, like marriage. Some may choose not to marry but want to be sure their partner has rights to medical information, authority to engage in medical decision-making, and assets and property after their death. Determining if and how a partner will be involved in these types of decisions can be accomplished through careful estate planning.
Marriage (First Marriages, Subsequent Marriages, and Blended Families)
Most people likely understand that the law affords parties to a marriage certain supreme rights. Marital status is one of the most significant factors in the disposition of an estate. Even when spouses have executed wills, spouses in Maryland have the right to the Elective Share, a fixed amount of the decedent’s estate to which a surviving spouse is entitled. Md. Code Ann., Estates & Trusts §3-402. In other words, a surviving spouse may elect against their deceased spouse’s will and instead claim their elective share. Many nuances should be considered in estate planning for married couples.
Just as a first marriage comes with special estate planning considerations, subsequent marriages require even more careful estate planning. Myriad issues can arise when parties want to protect certain assets or provide for non-mutual children from other relationships, which will also provide for a new spouse. By navigating these issues, competent counsel can help these couples achieve their estate planning goals.
Separation and Divorce
Just like marriage is a massive factor in estate planning, so is divorce. Many overlook the period during which married couples separate and the date the marriage is dissolved by decree of divorce. In some cases, this period can last years. Some spouses live separately and are estranged until death without considering that their estranged spouse still has the right to their elective share. A legal spouse has the inheritance rights of a spouse in most cases. Therefore, separated married couples should seek guidance on their estate plans. Likewise, divorced couples should re-evaluate the estate plans they created during their marriage.
Domestic Partnership in Maryland
Maryland legislature enacted a new law, effective October 1, 2023, that defined domestic partnership and provided certain advantages now afforded to qualified domestic partners who have registered their partnership in accordance with Md. Code Ann., Estates & Trust Art. § 2-214. These advantages are available to unmarried domestic partners who meet specific statutory requirements and are not limited to same-sex couples. Among other things, this change in the law will afford domestic partners rights similar to that of a spouse with respect to rights to their deceased partner’s estate.
Periods of Relationship Transition
Whenever relationship status changes, it is wise to re-evaluate your estate plan. It is also crucial to consider periods of transition. For example, a couple engaged to be married may want to consider a pre-nuptial agreement before their marriage, should there be concerns about their future spouse’s rights to inherit from their estate. Likewise, married couples would be wise to seek counsel and evaluate post-nuptial agreements to protect assets post-marriage, including a means to protect assets during the pendency of a divorce.
Evaluation of relationship status and the interplay with inheritance and estate rights is nuanced, often requiring an estate planning attorney and a family lawyer.
*This blog is for educational purposes and does not constitute legal advice.
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