This scenario happens every day: a relative dies and because there is no Will, state law dictates how the estate will be distributed to the next of kin. In many cases (but not all), a surviving opposite-sex spouse or same-sex Registered Domestic Partner would be the person designated to inherit if there was no Will. However, there is more to making a Will than making sure your significant other “gets everything.”
Creating a Will or Living Trust is often the last thing anyone wants to do, and the truth is, if you want to protect your assets, pass your assets on to someone other than what state law dictates, or ensure they go to the individuals or organizations you choose, then creating a Will should be one of the first things you do. For LGBT adults with partners, creating a Will or Living Trust is a crucial part of protecting your partner from financial uncertainty after your death. Too often, surviving partners are prevented from inheriting by family members who use the law to excise the surviving partner from the estate administration process. A family’s prejudices about the sexual orientation of their deceased loved one can motivate them to interfere with the deceased person’s intentions. Because of this risk, Wills and Living Trusts need to be prepared by a legal professional, who can help create a document that is thorough, concise, and properly executed. This helps ensure that the deceased person’s wishes and intentions are better able to withstand a legal challenge. Also important to consider, a Will is very necessary when a lengthy and/or degenerative illness leaves an opportunity for family members to argue that a person was not of sound mind when they executed their Will or Living.
Another reason to consider creating a Will or Living Trust is to try to mitigate some potential – and often inadvertent – tax consequences to the beneficiaries of your estate. Meeting with a legal professional to assess the potential tax risks of your estate, and to incorporate tax-saving techniques in your estate plan can help alleviate potential tax burdens after you die. Same-sex couples and unmarried opposite-sex couples are particularly vulnerable to taxation after the death of a partner, because of the disparate tax treatment between State and Federal taxing agencies based on marital status, and because there are often fewer planning opportunities available.
In addition to creating a Will or Living Trust, individuals and couples can execute the Oregon Advance Directive – and Physicians Orders for Life Sustaining Treatment (“POLST”) in certain circumstances – to name someone to direct your healthcare when you are unable to do so yourself, and to leave additional information and instructions about end-of-life preferences. This can be especially important when a couple is unmarried or not in a Registered Domestic Partnership where, in the absence of an Oregon Advance Directive, neither partner has a statutory right to direct the health care of the other partner.
Make 2012 the year you map out your estate planning documents – Wills or Living Trusts, Advance Directives or Health Care Powers of Attorney, Financial Powers of Attorney, etc. – and see an attorney who specializes in estate planning to help you create a plan that will protect your wishes and your loved ones. If you wish to speak to someone at Beth Allen Law, please feel free to contact us.
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