Estate Planning Guide for Same-Sex Couples and LGBTQ+ Individuals
The LGBTQ+ community has long had to fight for the same protections guaranteed to heterosexual couples, particularly when it comes to same-sex marriage. Fortunately, same-sex marriage was made legal in all 50 states in 2015, but unfortunately, without proper estate planning, a new set of struggles may arise for married same-sex couples. Despite recent progress, the reality remains that same-sex couples must be especially careful and proactive in their estate planning.
Estate planning is often confusing and complex, even for simple estates. The additional legal challenges and uncertainties faced by the LGBTQ community can make this process even more of a challenge. As a seasoned estate planning lawyer in Annapolis, MD, Attorney Raymond E. Brown offers extensive knowledge and experience to help clients create comprehensive estate plans that reflect their unique wishes and protect their assets in case of death or incapacity.
By partnering with Raymond and his team, members of the LGBTQ community in Annapolis, MD and throughout the Anne Arundel County area can receive knowledgeable advice and guidance from estate planning lawyers committed to safeguarding their legacy and ensuring peace of mind for the future.
Creating an LGBTQ+ Estate Plan
There are a number of estate planning documents out there, and many benefits that come with each of them. Whether you’re a married couple, an unmarried couple, or in a domestic partnership, you can benefit from having a solid estate plan in place.
Below are some key steps to creating a comprehensive and legally sound estate plan for members of the LGBTQ+ community.
Identifying Heirs and Beneficiaries
A good place to start when creating your estate plan is to clearly state your wishes regarding who will inherit your assets. This includes specifying how your retirement account, bank account, and other significant assets pass to chosen beneficiaries. Because LGBTQ+ individuals often prioritize close friends over biological relatives, it is important to legally designate this chosen family member (or members) to avoid potential disputes and ensure that your assets pass to the right person.
For LGBTQ+ individuals, it is particularly important to consider the rights of surviving spouses and partners. Given the historical legal challenges faced by this community, having a well-drafted estate plan helps protect their interests. Naming specific beneficiaries for your assets, such as retirement accounts, checking and savings accounts, personal property, and other assets ensures that these are transferred smoothly and in accordance with your intentions.
Creating a Will
A building block of any good estate plan is a legally binding will. Creating a last will and testament is essential for ensuring that your final wishes are respected and carried out, especially in the context of same-sex spouses who may face unique legal challenges. A will provides clear instructions on how to distribute assets, designate guardians for minor children, and specify any final arrangements.
A will can also include a final arrangements document, which details preferences for funeral and burial plans. By clearly outlining these wishes, you can prevent potential disputes and ensure your loved ones are provided for according to your intentions.
Consider a Civil Union or Domestic Partnership Agreement
Another key estate planning tool for LGBTQ couples is to consider establishing a domestic partnership or civil union. Domestic partnerships and civil unions provide legal recognition of a relationship without the need for marriage, offering various rights and benefits that can be crucial in estate planning. For LGBTQ couples, these legal structures can help ensure that their partner is recognized as the primary beneficiary and decision-maker, particularly in jurisdictions where marriage equality may still face challenges.
Setting Up a Trust
Members of the LGBTQ+ community may also benefit from creating a trust as part of their estate planning strategy. Establishing a legal entity such as a revocable living trust allows individuals to maintain control over their assets during their lifetime while providing a seamless transfer to beneficiaries upon their passing.
One key advantage of a trust is its ability to help avoid probate, ensuring that assets are distributed privately and efficiently without the delays and public exposure associated with the probate process. There are a number of other benefits to a trust, though many of them depend on the type of trust you create. Whether it’s a revocable living trust, a QTIP trust, a bypass trust, or a qualified domestic trust, including a trust in your estate plan can be extremely beneficial.
Gift Splitting
Same-sex couples can also greatly benefit from the strategy of gift splitting, especially when it comes to minimizing federal estate and gift taxes. Gift splitting allows married couples to give a certain amount each year to any number of recipients without the gift being subject to federal gift tax, known as the annual gift tax exclusion.
For same-sex married couples, employing gift splitting strategies can combine their individual exclusions and give up to double the amount to any one spouse without incurring gift tax. This can be particularly beneficial for same-sex couples looking to transfer wealth to loved ones or charitable organizations, as it enables them to maximize their annual federal estate tax exclusion.
Appointing Guardianship for Children
In the unfortunate event of both parents’ incapacity or death, designating a legal guardian ensures that the children’s care and upbringing align with the parents’ values and wishes. For LGBTQ+ families, this is especially significant as it protects the rights of a non-biological parent who might not be automatically recognized as a legal guardian. By clearly appointing guardians for both minor children and adult children with special needs, same-sex couples can prevent potential legal disputes and ensure continuity of care.
Planning for Incapacity
Planning for incapacity is another important piece of the estate planning puzzle. This involves preparing for scenarios where one may be unable to make financial or medical decisions due to an injury, medical condition, or lack of mental capacity.
One option is to create a durable power of attorney for either your financial decisions, health decisions, or both. Powers of Attorney in Maryland grant legal authority to a designated person, or attorney-in-fact, to manage financial affairs and make health decisions on behalf of the incapacitated individual. The attorney-in-fact may be a surviving spouse, friend, relative, or any other trusted loved one. A durable financial power of attorney is a great tool for ensuring that your financial matters are handled smoothly while a medical power of attorney, also known as a health care proxy, ensures that any medical preferences, including end-of-life care, are respected.
An advance health care directive, sometimes referred to as a living will, is another document that provides clear instructions about an individual’s medical decisions and treatment preferences. Having a healthcare directive is especially important for same-sex spouses and partners to ensure that their wishes are honored and their loved ones have the legal authority to access medical records and make crucial health decisions.
Updating Estate Planning Documents and Beneficiary Designations
It’s crucial for anyone with an estate plan already set in place to regularly update beneficiary designations and estate documents, especially after significant life events such as an individual’s death or separation from an ex-partner.
By ensuring that all beneficiary designations on retirement accounts, insurance policies, and bank accounts are current, as well as wills, trusts, and other estate planning tools, you can guarantee that your assets pass to the intended recipients.
Why You Need an Experienced Estate Planning Attorney
When it comes to estate planning (especially for same-sex marriages), understanding the ins and outs of applicable state laws and court proceedings requires the assistance of an experienced Maryland estate planning attorney like those at The Law Office of Raymond E. Brown.
Attorney Raymond E. Brown and his legal team have years of combined experience navigating Maryland state law, helping individuals across the state of Maryland and Washington, D.C. craft a comprehensive and effective overall estate plan. We understand that LGBTQ+ individuals and couples face a number of unique challenges, which is why we are dedicated to ensuring that all estate planning tools, such as wills, trusts, guardianship designations, and more, are correctly utilized and legally sound according to current laws.
How To Find an Attorney for LGBTQ Estate Planning
Finding an attorney for LGBTQ+ estate planning requires careful consideration to ensure your unique needs and goals are met. Start by seeking recommendations from friends, family, or LGBTQ+ community organizations who may know of attorneys specializing in this area. Checking online reviews and the attorney’s background can also provide insights into their work ethic and previous client satisfaction.
Overall, it’s important that you work with an attorney who demonstrates sensitivity to and knowledge of the specific challenges and legal issues in LGBTQ+ estate planning. At The Law Office of Raymond E. Brown, we are here to serve you with pride and ensure your estate plan is both comprehensive and legally sound.
Call a Maryland LGBTQ Estate Planning Attorney at The Law Office of Raymond E. Brown Today!
Whether you seek to create a healthcare directive to ensure your end-of-life wishes are met, create a sound will to ensure your assets and property go to the people you love, or establish guardianship over your child, creating an estate plan with the help of an experienced estate planning professional is the way to do it.
Ready to get started? Contact Raymond E. Brown at The Law Office of Raymond E. Brown today by calling (443) 554-9944 or sending a message online and start planning for peace of mind and a secure legacy.
