Financial
Financial planning for unmarried domestic partners
How times have changed. Less than 22 percent of American households are composed of married couples with dependent children, according to the latest U.S. Census. That number has dropped significantly: In 1970, 40 percent of households fit in that category.1 Meanwhile, over the past 40 years, the number of unmarried couple households has tripled to nearly 4 percent of the population; there are currently about four million such households in the United States.1
Legal protections
Unlike married couples, unmarried partners lack many of the legal protections or rights granted to spouses in the event of divorce or death. Although most states will consider a claim by an unmarried partner, there is no specific legal precedent in the absence of a written contract. Therefore, couples may wish to consider creating a domestic partnership agreement. This document can detail the sharing of expenses as well as the ownership and distribution of assets should the relationship end. A domestic partnership agreement is especially important in situations where one partner is the primary breadwinner or owns the majority of assets.
Decision making control is another crucial issue. Unmarried partners should create durable power of attorney and health care proxy documents. Some states also require a living will to address life-support issues. Creating a letter of instruction regarding burial or memorial preferences should also be considered. If such documents do not exist, an unmarried individual may find that his or her partner’s blood relatives will be allowed to make these key decisions if the need arises.
Unmarried couples with children face another concern: legal guardianship. Nearly 40 percent of unmarried couples have children under the age of 18.1 Yet legal guardianship of these children may not be as sound as for married couples. Because of this, unmarried couples should consider signing a written agreement acknowledging parental rights and responsibilities and having each partner name the other as primary guardian in wills.
Achieving a comfortable retirement
Although both married and unmarried couples need to save for retirement, unmarried couples may need to save more. Why? Because they will not be eligible for each other’s Social Security benefits and, in some cases, employer-sponsored retirement plan distributions unmarried partners should check their plan rules and specify plan beneficiaries. The IRS now allows a nonspousal beneficiary of an IRA to take required distributions over his or her lifetime rather than in a lump sum, allowing for potential tax-deferred growth over a longer period of time. Therefore, you may wish to contribute the annual maximum to an IRA ($5,000 in 2011; $6,000 age 50 and over)) before maximizing contributions to an employer-sponsored retirement account.
Annuities may also be an attractive investment vehicle since they allow for unlimited after-tax contributions, regardless of income or sources of income. Additionally, the payout methods of annuities usually include insurance features, enabling a named beneficiary or beneficiaries to receive payments if the owner dies before withdrawals begin.
When discussing retirement issues with your trusted advisors, remember to review all financial documents, including employer-sponsored retirement accounts, IRAs, annuities, and life insurance policies, to ensure named beneficiaries are consistent with those mentioned in wills.
Estate planning issues
For a spouse, a marriage certificate is the gateway to a number of financial benefits that unmarried partners do not necessarily possess. This disadvantage is especially apparent in regard to estate planning.
It’s essential for domestic partners to create wills. If you die without a will, the state may distribute your partner’s assets to his or her closest blood relatives. To help rebut a challenge to a will, domestic partners may want to videotape their wishes in the presence of an attorney. Additionally, a living trust may be desired because it remains confidential and is not subject to probate.
Transferring assets upon death requires careful planning for unmarried partners. For example, federal tax law allows all assets to pass to a spouse tax free and no applicable estate taxes are due until the second spouse dies. Unmarried couples do not enjoy this tax advantage.
If you have significant taxable assets, it will be necessary to pursue other avenues to potentially reduce estate tax. Currently, the federal estate tax is 35 percent on estates over $5 million, but the rate is scheduled to increase to 55 percent and apply to estates in excess of $1 million in 2013 unless Congress enacts new legislation. To help reduce tax liabilities for the surviving partner, you can purchase life insurance to pay any potential federal and state estate taxes. A surviving partner must own the insurance to avoid it becoming part of the estate of the deceased. Therefore, each partner must own enough insurance to pay any anticipated taxes on the assets of his or her partner.
Points to remember
Unmarried couples may wish to create a domestic-partnership agreement, which should detail the sharing of expenses as well as the ownership and distribution of assets should the relationship end.
Legal protections, such as durable power of attorney and health care proxy documents, and in some cases, a living will, can help safeguard decision-making control, if one partner is unable to make financial or health care decisions.
Domestic partners may need to save more for retirement than married couples. Annuities and IRAs may be attractive retirement savings vehicles for such couples.
Careful estate planning, including the use of trusts, may be appropriate for effective wealth transfer as unmarried partners will not enjoy tax advantages that federal law bestows upon spouses.
Source: U.S. Census Bureau, based on 2009 census estimates (latest available).
Potential purchasers seeking to use an annuity to fund a qualified or other tax-advantaged retirement plan should understand that the use of an annuity for such purpose is not necessary to defer taxation of investment earnings.
Morgan Stanley Smith Barney and its Financial Advisors do not provide tax or legal advice, are not “fiduciaries”(under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein, and this material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals should consult their personal tax and legal advisors before making any tax or legal related decisions.
The author(s) and/or publication are neither employees of nor affiliated with Morgan Stanley Smith Barney LLC (“MSSB”). By providing this third party publication, we are not implying an affiliation, sponsorship, endorsement, approval, investigation, verification or monitoring by MSSB of any information contained in the publication.
The opinions expressed by the authors are solely their own and do not necessarily reflect those of MSSB. The information and data in the article or publication has been obtained from sources outside of MSSB and MSSB makes no representations or guarantees as to the accuracy or completeness of information or data from sources outside of MSSB. Neither the information provided nor any opinion expressed constitutes a solicitation by MSSB with respect to the purchase or sale of any security, investment, strategy or product that may be mentioned.
Article written by McGraw Hill and provided courtesy of Morgan Stanley Smith Barney Financial Advisor Gregory Lawson. Morgan Stanley Smith Barney LLC. Member SIPC.
In September 2024, I wrote about the District’s Lead-Free D.C. initiative, an ambitious effort to remove lead pipes and make drinking water safer for every resident in our city. Since that original article, a number of important developments have taken shape that affect everyone living in the District. Key drivers in the legal landscape surrounding this issue such as disclosure, testing, and infrastructure planning have been sharpened. The city’s sweeping pipe replacement efforts are continuing to evolve against the backdrop of broader federal drinking-water rules and funding changes.
What was once largely public health conversation for the future is now a practical reality for many property owners and renters. The water service line replacement project has moved from planning and is presently underway throughout the city.
Elevated levels of lead in drinking water is a perplexing challenge in many U.S cities. Researchers documented elevated lead levels in D.C.’s water system more than two decades ago, spotlighting how old infrastructure can pose a hidden health risk even in one of America’s wealthiest cities. Local leaders responded with pipe replacement plans that have continued in the years since.
The Lead-Free D.C. initiative remains the central effort to reduce that risk by replacing water supply lines. These are the pipes that carry water to your home or rental property from the street. D.C. Water estimates that tens of thousands of lead or galvanized service lines still exist in the city and must be systematically replaced to eliminate this exposure.
What Has Changed Since September 2024
Over the past 18 months, several shifts have rippled through policy, practice, and the daily experience of both landlords and tenants:
- Local Disclosure and Tenant Rights: The city has strengthened disclosure requirements. Today, property owners are expected to provide clear written disclosures about known lead service lines, any testing that has been done, and records of past replacements. Tenants also have the right to request lead testing of their tap water, and landlords are responsible for ordering and passing along the test kit, and are required by law to share results with tenants when requested.This reflects an ongoing push toward transparency and an informed occupancy.
- Pipeline Replacement Planning: D.C. Water and the District Government are continuing to roll out their block-by-block lead service line replacement work, with construction schedules publicly available through a Lead-Free D.C. construction dashboard. The goal is to remove by 2030 all lead service lines on both the public and private side, though timelines and funding mechanisms are still being refined as the work continues. D.C.’s Lead-Free DC initiative stipulates that DC Water is responsible to replace the public portion of a lead service line at no cost to the property owners. This is the section running from the water main under the street to the property owner’s lot line. When DC Water is already replacing the public side as part of a scheduled infrastructure project, it will also offer to replace the private-side service line (into the building) at no cost to the owner, as long as the owner grants access and signs a right-of-entry agreement. In these cases, DC Water pays the contractor directly, and the entire lead service line is removed in one coordinated effort.
When no public-side project is scheduled, owners may still qualify for full private-side replacement coverage through the District’s Lead Pipe Replacement Assistance Program (LPRAP). If approved, the program covers the cost of replacing the private-side lead pipe, with funds paid directly to the contractor. Property owners are typically responsible for selecting the contractor, coordinating the work, and covering any costs outside the approved scope of work. Funding is subject to availability, and eligible applicants may be placed on a waiting list depending on annual program budgets.
- Implementation Best Practices: To avoid challenges and misunderstandings regarding the responsibilities during such a significant undertaking, fully investigating the program and how it works is a good first start as is regular and clear communications.
It’s helpful for both property owners and residents to have a clear understanding of what D.C. Water and construction crews will be doing during a lead service line replacement and what follow-up work may remain once the project is complete. Like any major infrastructure upgrade, the process can involve temporary water shutoffs, excavation around the building, and some restoration afterward, such as repairing landscaping or sections of sidewalk. While these short-term disruptions can be inconvenient, they’re a normal and necessary part of modernizing the city’s water system and ensuring safer drinking water for the long term.
- Federal Drinking Water Rules: On the national stage, the U.S. Environmental Protection Agency (EPA) finalized in October 2024 the Lead and Copper Rule Improvements (LCRI). The LCRI requires public water systems across the country to inventory and plan to replace lead service lines, and to remove all lead pipes within about a decade. It also strengthens testing, monitoring, and public notification requirements and lowers the action level for lead exposure, building on earlier revisions to the Lead and Copper Rule.
While these federal changes do not rewrite Washington, D.C.’s specific legal requirements for landlords and tenants, they do help shape funding opportunities, compliance expectations, and the broader national push to eliminate lead plumbing, which can affect utilities, state programs, and local infrastructure planning.
Federal drinking water regulations are subject to administrative review, litigation, and potential revisions as presidential administrations change. While the EPA’s 2024 Lead and Copper Rule Improvements remain in effect as of this writing, aspects of implementation, enforcement timelines, or funding mechanisms may evolve through future rulemaking, court decisions, or congressional action. These federal rules do not override Washington, D.C.’s independent authority to adopt and enforce its own public health, housing, and water safety requirements, which continue to govern landlord and tenant obligations within the District regardless of federal regulatory shifts.
What Landlords Should Know
For landlords in D.C., these evolving expectations matter in 3 key ways:
- Disclosure Is Now a Must: You are expected to provide prospective tenants with upfront information about lead service lines, known test results, and replacement history before lease signing. Existing tenants must also be informed if you learn anything new about the plumbing system.
- Testing Should Be Welcomed, Not Avoided: When tenants request a lead water test, you’re now required to provide D.C. Water’s approved kit and cooperate with the process. The test results give both sides clear information about water quality and whether additional remediation is advisable.
- Capital Investment May Be Unavoidable: Even if much of the public-side work is funded by D.C. Water, private-side service line replacement costs and restoration work may still fall to the property owner if the home still has lead service lines. Planning for both the expense and the logistics is key to be able to take advantage of this program being offered to D.C. homeowners.
What This Means for Tenants
For renters, the changes bring clearer rights and fewer unknowns. Tenants no longer have to guess whether lead pipes serve their home; they can request testing, receive timely results, and rely on official disclosures when deciding where to live and how to protect their health.
Transparent communication with the landlord, responsiveness to testing requests, and participation in replacement programs turn regulatory requirements into real-world safeguards. In that way, landlord action directly shapes tenant trust, housing stability, and long-term public health outcomes.
At a moment when the District is investing heavily in its infrastructure, landlords who plan ahead and participate help to ensure that these public resources translate into safer housing, stronger neighborhoods, and a city better equipped for the future.
Why This Still Matters
Lead-free water shouldn’t be a luxury. Continued investment by federal and local governments in Washington, D.C.’s water infrastructure reflects a shared commitment to the city’s long-term health and livability. Modernizing service lines helps ensure that people can raise families here, age in place, and remain part of their communities without the added health concerns associated with lead exposure.
Landlords who take the time now to understand, disclose, and plan for lead service line replacement not only comply with evolving expectations, but they also strengthen the long-term value and marketability of their properties.
Scott Bloom is owner and senior property manager of Columbia Property Management.
As the days grow longer and buyers re-emerge from winter hibernation, the spring market consistently proves to be one of the strongest times of year to sell a home. Increased inventory, motivated buyers, and picture-perfect curb appeal make it a prime window for homeowners ready to list.
The good news? Preparing your home for spring doesn’t require a full renovation or a contractor on speed dial. A few thoughtful, cost-effective updates can dramatically elevate your home’s appeal and market value.
Here are smart, inexpensive ways to get your property market-ready:
Fresh Paint: The Highest Return on a Small Investment
Few improvements transform a home as quickly and affordably as paint. Neutral tones remain the gold standard, but today’s buyers are gravitating toward warmer tan hues that create an inviting, elevated feel without overwhelming a space. Soft sandy beiges and warm greige-leaning tans provide a clean backdrop that photographs beautifully and allows buyers to envision their own furnishings in the home.
Freshly painted walls signal care and maintenance — two qualities buyers subconsciously look for when touring properties.
Removable Wallpaper: Style Without Commitment
For homeowners wanting to introduce personality without permanence, removable wallpaper offers a stylish solution. A subtle textured pattern in a powder room, a soft botanical print in a bedroom, or a modern geometric accent wall can add depth and character. Because it’s easily removed, it appeals to both sellers and buyers — creating visual interest without long-term risk.
Upgrade Light Fixtures for Instant Modernization
Outdated lighting can age a home instantly. Swapping builder-grade fixtures for modern, streamlined options is one of the simplest ways to refresh a space. Consider warm metallic finishes or matte black accents to create a cohesive, updated look. Proper lighting not only enhances aesthetics but also ensures your home feels bright and welcoming during showings.
Elevate Curb Appeal: First Impressions Matter Most
Spring buyers often decide how they feel about a home before they ever step inside. Refreshing curb appeal doesn’t require major landscaping. Simple updates such as fresh mulch, trimmed shrubs, seasonal flowers, a newly painted front door, and updated house numbers can dramatically improve first impressions. Power washing the driveway and walkways also delivers a clean, well-maintained appearance for minimal cost. Even if you don’t have a curb to appeal- think potted plants on your patio, balcony and change out your door mat.
Deep Clean & Declutter (Seriously, It Matters)
A deep, top-to-bottom cleaning is basically free and one of the most impactful things you can do. Scrub floors, windows, grout, baseboards, appliances, bathrooms, and everything in between. Don’t forget to clean windows inside and out — natural light is a huge selling point. Declutter by packing up excess stuff, clearing off countertops, and minimizing personal items so buyers can see the space, not your life.
Let the Light Shine
Make your home feel bright and inviting by cleaning windows, opening blinds, and replacing dark or dated light fixtures with contemporary, budget-friendly options. Swapping in LED bulbs offers brighter light and lower utility costs — a small change that buyers appreciate. Pro tip: I always recommend removing widow screens to allow as much light in as possible
Neutralize Scents
Make sure the home smells fresh. Neutralizing odors — whether from pets, cooking, or moisture — creates a clean, welcoming atmosphere. Light natural scents like citrus or subtle florals can be inviting during showings. Think of how your favorite hotel smells and go for that.
Spring market rewards preparation. By focusing on high-impact, low-cost improvements, sellers can position their homes to stand out in a competitive environment. With thoughtful updates and strategic presentation, homeowners can maximize both buyer interest and potential sale price — all without overextending their renovation budget.
As activity increases and inventory begins to rise, now is the time to prepare. A little polish today can translate into significant results tomorrow.
Justin Noble is a Real Estate professional with Sotheby’s International Realty Servicing Washington D.C., Maryland, and the beaches of Delaware.
Real Estate
2026: prices, pace, and winter weather
Lingering snow cover, sub-freezing temperatures have impacted area housing market
The D.C. metropolitan area’s housing market remains both pricey and complex. Buyers and sellers are navigating not only high costs and shifting buyer preferences, but also seasonal weather conditions that influence construction, inventory, showings, and marketing time.
Seasonality has long affected the housing market across the U.S. Activity typically peaks in spring and summer and dips in winter; however, January and February 2026 brought unusually cold spells to our area, with extended freezing conditions.
Persistent snow and ice-covered roads and sidewalks have gone for days, and in some cases weeks, before melting. While snow accumulation normally averages only a few inches this time of year, this winter saw below-normal temperatures and lingering snow cover that has significantly disrupted normal activity.
Rather than relying on neighborhood teenagers to shovel snow to make some extra money, the “snowcrete” has required ice picks, Bobcats, and snow removal professionals to clear streets and alleys, free our cars from their parking spaces, and restore availability of mass transit.
These winter conditions have had an adverse impact on the regional housing market in several ways.
- Construction slowdown: New builds and exterior improvements often pause during extended cold, resulting in delayed housing starts when we need affordable housing in the worst way.
- Listing preparation: Cleaning crews, sign installers, photographers, and stagers with trucks full of furniture may be unable to navigate roads and need to postpone service.
- Showings and open houses: Simply put, buyers are less inclined to schedule visits in hazardous conditions. Sellers must ensure walkways and parking areas are clear and de-iced and be able to vacate the property while viewings are taking place.
- Inspection and appraisal delays: Like buyers and sellers, ancillary professionals may be delayed by unfavorable weather, slowing timelines from contract to close.
- Maintenance and repairs: Properties with winter damage (e.g., ice dams or frozen pipes) may experience repair delays due to contractor availability and supply chain schedules. Snow and cold can also affect properties with older and more delicate systems adversely, leading some sellers to delay listing until better conditions arrive.
- Availability of labor: Increasingly, construction, landscaping, and domestic workers are reluctant to come into the District, not because of ice, but because of ICE.
Overall, the District has shown a notable increase in days on the market compared with past years. Homes that once sold in a week or less are now often listed for 30+ days before obtaining an offer, especially in the condominium and mid-range house segments. While part of this shift can be attributed to weather and climate, interest rates, uncertain employment, temporary furloughs, and general economic conditions play key roles.
Nonetheless, we continue to host some of the region’s most expensive residences. Historic estates, including a Georgetown mansion that sold for around $28 million, anchor the luxury segment and reflect ongoing demand for premium urban property.
But even in this high-end housing sector, marketing strategies are evolving based on seasonal realities. Price reductions on unique or niche properties, such as undersized or unconventional homes, reflect a broader market adjustment where competitive pricing can shorten selling time.
For example, a beautifully renovated, 4-story brick home with garage parking and multiple decks that overlook the Georgetown waterfront sold in early February for 90 percent of the list price after 50 days on the market.
At the other end of the spectrum, a 2-bedroom investor-special rowhouse in Anacostia only took eight days to sell for under $200,000, down 14 percent from its original list price. In addition, four D.C. homes took more than 250 days to sell, including an 8-bedroom rooming house that was on the market for 688 days and closed after a 23 percent downward price adjustment.
Some frustrated sellers are simply taking their homes off the market rather than dropping prices below their mortgage balances, although we are beginning to see the resurgence of short sales for those who must sell.
Condominiums and cooperatives offer many opportunities for buyers and investors, with 1,100 of them currently on the market in D.C. alone. List prices run the gamut from $55,000 for a studio along the Southwest Waterfront to nearly $5 million for five bedrooms, four full baths, and 4,400 square feet at the Watergate.
So, while Washington metro area prices remain high, the pace of sales now reflects both seasonal and economic realities. Homes taking longer to sell, in part caused by elements of winter, signal a shifting market where buyers can take more time to decide which home to choose and have a better negotiating posture than in recent years.
Accordingly, sellers must continue to price strategically, primp and polish their homes, and prepare for additional adverse circumstances by reviewing fluctuating market conditions with their REALTOR® of choice.
Valerie M. Blake is a licensed Associate Broker in DC, MD & VA with RLAH @properties. Call or text her at (202) 246-8602, email her at [email protected] or follow her on Facebook at TheRealst8ofAffairs.
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