However, if the couple is not married either by choice, or the couple are of the same sex, the law does not protect a life partner and taxes can become a serious problem. If a couple is married, a surviving spouse can receive an unlimited amount without tax. However, if the couple is unmarried, then taxes may be due after the first death and can significantly affect a life partner's financial future.
Many problems also arise in retirement planning.
To complicate matters further, only a spouse can rollover a pension or an IRA account, thereby creating income tax problems for a non-married partner as well. If there is no spouse, then careful beneficiary planning must be performed. Often people forget to coordinate their beneficiary designations with their wills, leaving a niece, nephew or other relative on old documents and by mistake cutting off their life partner from important benefits. If there is both a valid old beneficiary designation and a current will, the beneficiary designation will take precedence. Another common problem deals with joint ownership, especially with annuity contracts.