Are you engaged to be married soon? Congratulations! It’s an exciting time; understandably, you want to start building a life together with your partner. However, it’s important to remember that until you are married, you don’t have any legal right to each other’s assets in the event of death or incapacity. If something happens to one of you, the other could find themselves in a difficult situation.

Many people start buying significant assets together during their engagement, such as a house and cars, and they combine bank accounts. Although, understandably, they want to start gaining the efficiencies that come with two people contributing towards these purchases, becoming financially dependent on someone you are not married to and don’t have any contractual relationship with can be risky. Here are some reasons why:

• Lack of legal protection: Until you are married, you have no legal right to each other’s assets in the event of death or incapacity. If something happens to one of you, the other could find themselves in a difficult situation. For example, you could co-own your house with people who would have been your in-laws.
• No contractual relationship: When you get married, you enter into a contractual relationship that provides certain legal protections. Until then, you don’t have any contractual relationship with your partner. This means you could be left without legal recourse if something happens.
• Financial risk: Becoming financially dependent on someone to whom you are not married can be a risky thing to do. You could have a difficult financial situation if something happens to your partner. For example, you could be left with a mortgage payment you can’t afford alone.

For these reasons, thinking about estate planning during your engagement is essential. Estate planning is planning what happens to your assets in the event of your death or incapacity. An estate plan is critical to ensure your assets are distributed according to your wishes.

Here are some steps you can take to start the estate planning process if you are combining finances with someone to whom you are not married:

1. Create a will: A will is a legal document that outlines how you want your assets to be distributed after your death. It’s essential to have a will in place to ensure that your assets are distributed according to your wishes.
2. Create a power of attorney: A power of attorney is a legal document that gives someone else the authority to decide on your behalf if you become incapacitated.
3. Create a living will: A living will is a legal document that outlines your wishes for medical treatment if you become incapacitated.

By taking these steps, you can ensure that your assets are protected and that your wishes are carried out during your death or incapacity. Congratulations again on your engagement, and best of luck with your estate planning!