Jun
21
2023
5 Estate Planning Basics For Same-Sex Couples & LGBT+ Individuals
This month, hundreds of Pride events are taking place across our nation to celebrate and support the LGBT+ community. In reflection of Pride Month, let's discuss the necessity of estate planning for LGBT+ individuals and couples.
LGBT+ individuals and couples have an even greater need than others for estate planning. Those individuals who are lesbian, gay, bisexual, or transgender, whether married, unmarried, in a civil union, or single, need to take the time to do estate planning to protect themselves in a legal system that may not provide them the same benefits as others.
The U.S. Supreme Court has held that same-sex marriages legal in one state are to be recognized as legal in all 50 states. This means that many legal protections in the estate planning area are now available for same-sex couples that previously were not. The automatic right to inherit certain property from your spouse, the right to make medical or financial decisions for each other, and related legal considerations should now apply to LGBT+ couples who have formally married or entered into a legally-recognized civil union under any state's law.
However, it is still a good idea to have the basics of a good estate plan in place, whether you have married or not, so nothing is left to chance. This is the same advice I give to heterosexual couples.
Many LGBT+ couples still have not decided to enter into formal marriage and do not have the legal protections it provides. For them, estate planning is critical to providing for their partners. Unmarried LGBT+ individuals, whether in a relationship or not, may not have their wishes for financial or medical management of their affairs while alive, or their wishes for handling matters on their death, honored, without a few key estate planning documents in place.
Key Estate-Planning Basics For LGBT+ Individuals Or Couples
1. A Last Will And Testament, Or "Will"
This spells out how you want your estate to pass on your death. If you are unmarried and want your estate to pass to your same-sex partner, this is essential. State inheritance laws will not allow this to happen. You can name whomever you want to serve as executor of your estate to implement your estate plan when you die.
You can set up trusts for minor beneficiaries or beneficiaries who need special conditions set on the receipt of their inheritance and name who will be the trustee to administer those assets for the benefit of the beneficiaries. You also should specify whom you would want to serve as guardian of your minor children (although, depending on the circumstances, this may not be honored if another person has a superior right to guardianship under state law).
2. A Statutory Durable Power of Attorney
This is the legal document that gives someone you choose the power to act in your place if you are not able to act to manage your own business or financial affairs. You want to make sure this remains effective if you become incapacitated or incompetent.
3. A Medical Power Of Attorney/Directive To Physicians (or Living Will)/ HIPAA Release
The Medical Power of Attorney spells out who can make medical decisions on your behalf if you are not able to do so yourself. The Directive to Physicians or Living Will expresses your wishes for whether you want to be kept alive by artificial means if you are unconscious and in terminal condition and have no reasonable chance of recovery.
The HIPAA release allows the person you designate to have access to your protected health information so the person making these medical decisions can have full medical information.
4. A Power Of Attorney To Dispose Of Remains
This allows you to appoint someone to carry out your wishes for burial, cremation, donation of your body parts, donation of your body to a medical facility, or the like.
5. Review Of All Possible Beneficiary Designations
You can have many assets pass directly to your partner or other intended beneficiary by their designation as beneficiary or by payable on death or transfer on death provisions. This is especially important on IRAs, 401(k) accounts, life insurance policies, and bank or investment accounts, which often comprise a large part of a person's estate.
** This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal, or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.
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Mrs. Buckner did a full estate plan for me. Her work was excellent, her communication was great, and the price was reasonable. I would highly recommend her for your estate planning needs.
When my husband passed away, I contacted the attorney that we had used to prepare our wills but was unhappy with his attitude of indifference. I discovered Adair Buckner and all of my issues were resolved. Adair is professional, compassionate, and extremely knowledgeable. She saved me a large amount of money by processing my will in the appropriate manner to best suit my situation.
We appreciate Adair Buckner’s professional and personable service. Our legal needs were met promptly and succinctly. We would not hesitate (and do!) recommend her to our family and friends.
Adair drew up a beautiful power of attorney and Will for my father in a timely manner. I highly recommend that you use her. She’s a wonderful lady.
This was as painless as it gets to hire an attorney in Amarillo Texas. Handled all the estate needs and never had to appear in court. You won't find any better and I use Attorneys quite often in my line of work.
It was way past time to finally get our Wills completed. This was something that was extremely complicated for us, but Adair and her assistant never made us feel like we were bothering them...and we (I) bothered them...a lot! Things were explained to us in a way that we could understand easily. Extremely professional and knows her stuff!
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Adair is very professional. She cares about her clients and explains everything very well. She makes you feel like a friend.
Losing my Mother and being appointed as Executor of her estate was overwhelming. Adair was very professional and personable. She handled and processed the estate with ease and kindness.