Many common-law couples build their futures together without the traditional legal protections afforded to married partners. While sharing life, love and finances, these couples often face uncertainties regarding estate planning and the protection of their assets.
The legal differences between common-law and married couples in Alberta can lead to unintended consequences if proper planning is not in place.
In a common-law relationship, you can safeguard your partner’s future through estate planning. Consulting the wills and estate lawyers at One80 Law is your first step to protecting your partner and ensuring that your legacy reflects the values and commitments you have built together.
The path to peace of mind and financial security starts with proactive estate planning.
Understanding Estate Rights for Common-Law Couples
Alberta recognizes common-law relationships under the Adult Interdependent Relationships Act, setting the criteria for a marriage-like status. However, common-law partners do not automatically receive the same inheritance rights as legally married couples.
If a common-law partner dies intestate, i.e., without a valid will, the estate is distributed according to provincial intestacy laws. This may result in assets awarded to blood relatives rather than the surviving partner.
The intestacy process, along with the lengthy and costly probate system, can delay asset transfer and create additional stress during an already difficult time. That’s why it’s a good idea to consult with a wills and estate lawyer to plan your estate and legally document your wishes.
Protecting Your Legacy
Without a will, common-law couples are at the mercy of intestacy laws. A comprehensive estate plan protects common-law couples’ financial futures and honours their wishes. Drafting a legally sound will is crucial, as it outlines asset distribution, beneficiary designations and provisions for dependents.
In addition to a will, establishing power of attorney and healthcare directives allows a trusted individual to manage financial and medical decisions if one partner becomes incapacitated.
Another integral part of estate planning is naming beneficiaries and setting up trusts. This minimizes disputes, safeguards wealth and provides financial security for the surviving partner.
How Common-Law Couples Can Use Trusts to Protect Their Estates
Placing assets in a trust is another strategic way to ensure financial security and control over your estate. A trust allows you to designate specific beneficiaries and outline how your assets should be managed and distributed, reducing the risk of disputes and unintended inheritances.
Unlike wills, which may go through probate and be subject to legal challenges, trusts provide a seamless transfer of wealth while offering tax advantages and creditor protection. For common-law partners, establishing a trust can safeguard shared assets, providing the surviving partner with continued financial support without interference from intestacy laws.
Working with an experienced wills and estate lawyer can help you determine the right type of trust to protect your legacy and secure your partner’s future.
Avoiding the Pitfalls of Joint and Individual Ownership
Whether you hold your assets jointly or individually can have significant implications for your estate. Common-law couples should review their financial arrangements to determine whether their assets are held as joint tenancies or as tenants in common.
Joint ownership with the right of survivorship can simplify the transfer of assets by allowing the surviving partner to inherit the property. However, many assets are not held jointly, and the absence of a will can lead to unintended outcomes. Your overall estate plan must account for all forms of asset ownership.
Are You Looking for Reliable Wills and Estate Lawyers?
Proactive estate planning is essential for protecting the financial future of common-law partners. One80 Law redefines estate planning by offering remote legal consultations that make professional guidance more accessible and efficient, particularly for common-law couples.
Our wills and estate lawyers in Calgary specialize in navigating the unique inheritance challenges unmarried partners face.
Let us provide peace of mind. Call 587-912-1133 or complete our contact form to begin the estate-planning process.