'What If He Doesn't Die?' Suze Orman Explains The Risk Of Joint Tenancy Without A Trust

For couples who aren't married but plan to buy property together, choosing how to title that home can be a big decision. On a recent episode of the "Women & Money" podcast, Suze Orman shared important insights for unmarried partners buying property — especially when one person is contributing more financially than the other.

Her advice came in response to a listener named Zoe, who wrote in with concerns about her future security.

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Buying a Home, but Not Married

Zoe and her partner have been together for 20 years and are purchasing their first home — a co-op apartment in New York. Zoe is switching careers to become an artist and won't be contributing to the mortgage payments, while her partner who earns significantly more is putting down most of the down payment and will cover the mortgage.

They plan to title the home as joint tenancy with right of survivorship, which means if one of them passes away, the other automatically inherits the property. While this setup sounds secure, Orman raised a crucial point.

Yes, You Get the House — But Can You Afford It?

Orman confirmed that if Zoe's partner dies, joint tenancy would give Zoe full ownership of the property. The issue, however, isn't about legal ownership — it's about financial reality. Since Zoe won't be able to afford the mortgage on her own, she risks losing the home even if she inherits it.

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Orman's solution? Consider buying a 20-year level term life insurance policy on Zoe's partner. That way, if something happens to him, the policy could provide enough funds to pay off the mortgage and allow Zoe to stay in the home.

Why 20 years and not 30? Orman explained that in 20 years, the home might already be paid off — or more affordable — especially if they make extra payments along the way.

The Bigger Risk: What If He Doesn't Die?

While many people think about death as the worst-case scenario, Orman pointed out a situation that could be even more financially disruptive: incapacity.

"What if, all of a sudden, now he's in an accident, he is incapacitated? He doesn't recognize you. He can't work anymore," she said. If the couple wants or needs to sell the property at that point, they might run into a major legal roadblock.

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With joint tenancy, both owners must sign off to sell the property. If one person is incapacitated and unable to sign, the other may be stuck. That's where Orman recommends a revocable living trust with an incapacity clause. This type of legal document allows each person to act on the other's behalf in the event of incapacity.

Protecting Each Other Without a Marriage Certificate

Zoe and her partner have chosen not to get married, but Orman encouraged listeners to understand the financial tradeoffs. For instance, if they were married, Zoe could be eligible for spousal Social Security benefits or other financial protections.

Still, for those who want to stay unmarried, steps like setting up a trust and getting life insurance can offer similar protections.

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