Financial and Estate Planning Considerations for Same-Sex Couples

July 26, 2012

Financial and Estate Planning Considerations for Same-Sex Couples

In these tumultuous times, the legal and financial landscape for same-sex couples is in a state of constant flux, making long-term planning a challenging task. This article outlines a few important considerations for same-sex couples who are planning for the future together.

Inheritance

A potentially complex issue under any circumstances, inheriting property and other assets after the death of a partner can be especially complicated for same-sex couples. To help ensure that your loved ones are provided for according to your wishes in the event of your death, it is essential to have a detailed will and keep it up to date. In addition, be sure to list your partner as a beneficiary on any retirement accounts or life insurance policies that you own, and consider whether to add him or her as a joint owner on your bank account, vehicle title, home deed and other property you own.

Health Care Decisions

A health care power of attorney authorizes another person, often referred to as an agent, to make medical decisions for you in the event that you become unable to make them yourself. A durable power of attorney for health care is an important part of any estate plan, and is especially important for same-sex couples because the power to make these important decisions may fall by default to a blood relative or other individual if you do not authorize your partner to act as your health care agent in advance.

Social Security Benefits

When one spouse in a heterosexual married couple dies, the other is often entitled to receive Social Security benefits as a surviving spouse, which can provide a crucial source of income as he or she ages. Under current federal law, however, surviving members of same-sex couples are not eligible to receive these spousal benefits after the death of a partner. This means that same-sex couples must plan ahead to ensure that their loved ones will be provided for later in life without these valuable financial benefits. Depending on each couple's unique circumstances, potential alternatives may include putting away extra money in savings or purchasing life insurance to make up the difference.

Speak With an Attorney

For more information about these and other important estate planning considerations for same-sex couples, or for help planning your estate, contact a knowledgeable attorney with experience in the complex field of estate planning for same-sex partnerships.

Article provided by Bezaire, Ledwitz & Borncamp, APC
Visit us at http://www.familylegacylaw.com