Surveys show that 10 per cent of LGBTQ couples are married to a same-sex partner. This is an increase of 3 per cent after the high court ruling.
This shows that the world has changed rapidly, and as such, same-sex marriages have become common.
As an LGBTQ couple, you need to handle so many issues, so get ready to handle some more when you decide to plan your estate.
When it comes to estate planning, you need to understand that the same rules apply to your union just like any other couple out there – as long as you have an estate to protect, you need to have legally binding documents to prove ownership and guide the distribution of wealth.
Since you are faced with the same predicaments that come with other kinds of couples, you will need the following documents to make things easier for your beneficiaries.
Have a Will
This is the mainstay of any estate plan. The document might seem easy to draft, but its importance is enormous. The will determines the following:
- The beneficiaries of your estate.
- Who will protect and watch over your kids if they are less than 18 years old.
- Executors for the estate.
- The names of an adult to manage assets for minors.
Your beneficiary list can be anyone who takes over your property when you are gone – it can even be the family pet.
Remember that if you fail to come up with a will, the property that you own will be controlled by the law of the state.
Dying without a will is an exceptionally massive issue for same-sex couples because the law will rely on existing stipulations about these types of marriages. So, if you aren’t married, or the state laws don’t allow you to get married, then your partner might end up with nothing.
Avoid Probate
When you don’t have a will, then your estate is handled by the courts. This process is usually lengthy and costly, and won’t benefit your beneficiaries a lot.
We also have various ways you can avoid probate, but this is hard for same-sex couples because many states won’t give you the chance to use the laws that allow the property to pass through to your partner without going through probate.
Other ways to avoid probate is to use the following methods:
- Set up a living trust.
- Use accounts that transfer your property to a beneficiary upon your demise.
- Use joint ownership of the property rather than a sole proprietorship.
Have a Health Care Directive
If you have a condition that threatens to be terminal, you need to come up with these directives. This is where you allow somebody to make health decisions on your behalf when you are incapacitated.
The directive is ideal because it tells the attending physician what to do when you near the end of your life. The good thing is that you can assign your partner to make decisions on your behalf without anyone doubting your relationship.
Understand Estate Taxes
If you plan to give your property away, you have to think about taxes. The estate plan is one of the ways to reduce the amount of taxes you pay.
The federal government has set a directive to use when paying taxes. If your estate is small, you might not have to pay estate tax.
However, you need to consult with an estate planning attorney to find out if the state you reside in has an estate tax. This is because different states charge different estate taxes, which you must pay.
Create Powers of the Attorney (POA)
This comes in two types. The financial POA allows you to choose someone to handle your business decisions when you are not in a position to do so yourself.
The second type is the health care POA. This entrusts someone the power to make decisions on your behalf regarding the nature of medical procedures that can be performed on you. The person only makes the decisions when you can’t do this on your own.
Decide Final Plans
The estate plan also gives you room to make final arrangements. The document you come up with talks about what happens when you die and should be done during your funeral.
This document isn’t legally binding, but it assists your surviving partner in making decisions faster regarding your final journey.Final Words
As a same-sex couple, you need to make sure you have the right estate planning documents ready and well-crafted so that regardless of the law of the state, you get to leave your partner with some property.
