Estate planning is an opportunity to develop a personal and financial plan for your legacy. This is so much more than writing out a will. Insurance, real estate, guardianship, financial planning, and wealth management is included in a comprehensive estate plan. Prior to 2015, estate planning was difficult for LGBT couples. Since the Supreme Court ruling legalizing same sex marriage in all 50 states, LGBT couples have the opportunity to make plans securing the future of you and your partner.
Prior to 2015, estate planning for LGBT couples was difficult.
Developing a plan that protects your rights and the rights of you partner is imperative to this process. The plan should include a well thought out will that can shield each other, family members, and assets. Here are a few pillars to consider in a comprehensive estate plan:
- Always update your will. Your last will & testament is the document that will dictate your final wishes for your property, assets, and family after you are deceased. This can include care for your pets. If a will does not exist, the state in which you reside will determine who inherits your property and assets. If an unmarried LGBT couple does not have a will, there is a strong possibility that the surviving partner would not be included if a judge makes a decision on the inheritance.
- A trust could be a great idea. A family estate planning attorney can help you determine if a trust is a good option for your estate plan. A trust is simply a financial arrangement for your wealth after you are deceased (or a living trust if still alive). A trust is a perfect method to insure that children are provided for after you are deceased.
- Don’t forget about your real estate. Real estate is often the biggest asset in a relationship. It is important to consider the different types of ownership, and how your situation may affect your partner if you face an untimely death. If your ownership is not joint, you will want to make sure that the home is protected in the estate plan.
- Is a pre-nup for us? A pre-nuptial agreement can be a point of great debate. Some people feel that is displays a lack of trust in the relationship. Logically speaking, you always want to protect yourself in any situation where a financial and legal commitment is being made. Marriage is no different.
- Domestic Partnership Agreement (DPA) is an option. Regardless of your marital status, a domestic partnership agreement may fit the bill. A DPA documents intentions and expectations of each partner in the relationship.
- Should I consider any estate tax issues? Yes, you should. LGBT and heterosexual couples are considered the same by the IRS. It is best to educate yourself on state estate or inheritance taxes so that you can make the best possible plan.
- Protect your family with insurance. Life insurance will offer a safety net for your partner, and can pay for your final arrangements.
- Update all the important documents. Beneficiary information, HIPAA designations, general power of attorney are all documents that should be kept current to have the most secure estate plan.Estate planning can be very overwhelming. By working with a skilled family estate planning attorney, you are ensuring your peace of mind for the future of your partner and family without legal complications.
