LGBTQIA+ Estate Planning Essentials

Estate planning is crucial for everyone but can be especially vital for LGBTQIA+ couples. Even though marriage equality laws have leveled the playing field in many ways, there are still unique challenges and opportunities that LGBTQIA+ couples should consider. Creating and updating your estate plan to reflect your changing life situation is key to protecting your assets and loved ones.

What Legal Documents Are Needed?

Like any other couple, LGBTQIA+ couples must have certain essential documents in place to protect their rights and wishes. These include:

• Living Will: Outlines your wishes for end-of-life care if you cannot communicate them yourself.
• Health Care Power of Attorney: Designates someone to make medical decisions on your behalf if you're incapacitated.
• Durable Financial Power of Attorney: Allows someone to manage your financial affairs if you cannot.
• HIPAA Privacy Authorization: Ensures that your designated person can access your health information when necessary.

These documents are critical for ensuring that your wishes are respected, especially when one partner might not be recognized as a legal spouse due to outdated or incorrect paperwork.

Should Non-Biological Parents Consider Adoption?

One of the unique challenges for LGBTQIA+ couples, particularly those with children, is the legal recognition of both parents. In many cases, only one partner is the biological parent, which can create complications if the biological parent passes away or if the couple separates.

By adopting their partner's child, non-biological parents can establish a legal relationship with the child and obtain parental rights. This can prevent disputes over custody with extended family members and protect the child's inheritance rights.

Should LGBTQIA+ Couples Review Beneficiary Forms?

LGBTQIA+ individuals must ensure that the beneficiary forms for their insurance plans, retirement accounts, and other financial assets are current. These forms override what is written in a will. Therefore, if you forget to replace an ex-partner or family member as a beneficiary, that person will inherit those assets.

This is especially important for LGBTQIA+ couples who may have previously named someone other than their spouse as a beneficiary before their marriage was legally recognized. Regularly reviewing and updating these forms, especially after major life events, ensures that your assets go to the person you intend.

Resolving Previous Legal Unions

Before same-sex marriage became legal, many LGBTQIA+ individuals entered into domestic partnerships, civil unions, or other legal arrangements to protect their relationships. However, some states automatically upgraded these partnerships to marriages when the law changed, sometimes without the couple's knowledge.

This can create a "tangled web" of legal relationships that could lead to complications with your estate. For instance, if you didn’t formally dissolve a previous partnership, your former partner might have a claim to your estate. It’s important to resolve any past legal unions to prevent future disputes.

The Story of Prior Legal Unions

In a story shared in the MassMutual blog, Joan Burda, an attorney in Lakewood, Ohio, shares the cautionary tale of LGBTQIA+ couples who entered domestic partnerships or civil unions before legalizing same-sex marriage. These partnerships were sometimes automatically upgraded to marriages without the couple’s knowledge when laws changed, leading to unexpected complications.

For instance, couples who thought they had dissolved their previous legal relationships might find that their former partners still have legal claims on their estate. This underscores the importance of reviewing and resolving all prior legal unions to prevent future disputes and ensure the full protection of their current relationships.

What Should Couples Do Next?

Estate planning is not a one-time event. Laws change, relationships evolve and your plan needs to reflect those changes. LGBTQIA+ couples should take the time to review their estate planning documents, resolve any past legal relationships and ensure that their beneficiary forms are up to date.

Key Takeaways

• Protect Your Relationship: Ensure legal recognition of your partnership, safeguarding your rights and those of your spouse.
• Secure Parental Rights: Adoption for non-biological parents can establish crucial legal ties, protecting your children’s future.
• Update Beneficiaries: Regularly reviewing and updating beneficiary forms prevents unintended inheritance and ensures that your assets go to the right people.
• Resolve Prior Legal Unions: Clear up any past domestic partnerships or civil unions to avoid potential legal conflicts and claims on your estate.
• Maximize Legal Benefits: For optimal estate planning, leverage the legal protections and tax advantages available to married LGBTQIA+ couples.

If you're ready to protect your relationship, secure your family's future, and ensure your wishes are respected, our experienced estate planning attorneys are here to help. Contact us today to create or update your estate plan tailored to your unique needs.

If you have any questions, schedule a free appointment with us through our online appointment page.

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Reference: MassMutual (June 06, 2024) “Estate Planning for LGBTQIA+ Couples”