To be honest, I didn’t think I’d have to think about real estate planning in my 20s. This is something that only millionaires should worry about, and I am far from deserving this title. Right?
But something happened recently that got me thinking: Rowe vs. Wade was overturned. Now it seems that there is a real possibility that my marriage could be declared invalid by the Supreme Court.
So what would happen to my husband if I wasn’t around anymore? How about home? What about our animal hoard?
Pale, I know. But this is just a reality that many LGBTQ+ couples have to live with on a daily basis.
Fortunately, I know the steps we need to take to make a plan for our family. And I hope this article will help other LGBTQ+ couples understand the importance of creating a real estate plan with their partner(s) and offer some tips on how to do it.
What is estate planning?
Estate planning involves considering your current and future assets and deciding what will happen to them when you die or are no longer able to manage them. In most cases, “traditional” estate planning requires the assistance of a professional consultant and possibly a lawyer.
The document you most often hear about in terms of inheritance is your will. This is a document that determines where or to whom your belongings will go after your death. In addition, the will may specify who will have custody of your children if they are minors at the time of your death.
Read more: Who needs a will?
Why is estate planning different for LGBTQ+ families?
Estate planning is not the most inspiring topic in personal finance, but it is important for anyone who wants to ensure the care of their loved ones. However, for LGBTQ+ families, estate planning is becoming more important.
LGBTQ+ families often need additional legal protection
While many legal protections have been eliminated in recent years, LGBTQ+ rights remain a matter of debate, not a guarantee, and there is ongoing and legitimate concern that our newly acquired rights will be denied. Recent Rowe vs. Wade the repeal led to another fight to get states to stop recognizing same-sex marriage.
If same-sex marriage is abolished, it is currently difficult to predict what will happen to same-sex couples who are already married, and this could make life much more difficult for same-sex couples who want to get married. Marriage gives the surviving spouse rights such as custody of children and the right to financial or business assets owned by the deceased spouse. If what was once a legal marriage is suddenly declared illegal, it could potentially leave the surviving spouse open to custody and/or property disputes.
Knifewhether the marriage is valid or not in the eyes of the law is not so important if you have an inheritance plan, which is a legal and binding contract that must remain in effect even if the Supreme Court overturns it … sexual marriage.
Parental rights are uncertain
Having a baby when you’re in an LGBTQ+ relationship can be tricky, especially from a legal standpoint. While same-sex adoption became legal in all 50 states in 2017, there are many documented cases of same-sex couples being denied adoption or at least discriminated against in the adoption process. Even the American Bar Association acknowledges that the legal adoption process is often discriminatory against LGBTQ+ couples.
For those LGBTQ+ couples who have successfully adopted children, it is easy to understand why there is concern that their family’s right to stay together may be threatened. The estate plan, including the legal document of adoption, must protect each spouse and their children in the event of any dispute over the legality of their family.
Legal confusion can also arise when it comes to transgender parents. Often, trans men who give birth are still listed as “mother” on their child’s birth certificate, which can cause legal problems down the road if that parent had their gender marker changed on all legal documents other than the birth certificate. Estate planning ensures that all legal documents are in place accurately reflecting the identity and rights of each parent.
Domestic partnerships and civil unions are not well protected
The right of LGBTQ+ couples to marry is still relatively new, so many families entered into family relationships or civil unions before it became legal to marry. Unfortunately, none of the unions provides such legal protection as marriage.
One example, and the main reason why the succession plan is so important for those in a domestic partnership and in a civil union, is that only marriage gives you the right to inherit your partner’s property if he dies. Thus, an estate plan is the only way to protect yourself if you and your partner decide not to legally marry.
How to create your real estate plan
Contact a real estate lawyer
The larger your estate, the more difficult planning can be. Large estates can be made up of assets worth $75,000 or more, businesses, real estate, and any other valuable items that you need to know will end up in the right home. This is especially true for families with multiple children and other family members who may wish to inherit certain items. In these cases, cooperation with a professional real estate lawyer is a must.
Word of mouth is a great way to find a professional real estate attorney. Ask your friends and family if they know anyone. If not, you can search the database of the National Association of Real Estate Planners and Boards.
Real estate plans online
For those who have a simpler estate – say a house and smaller assets like a car, but no major investment or business There are online tools that provide legal documents at a very low cost. You will mostly work with these products on your own, so if you don’t understand something or find that your assets are too complex to figure out on your own, you should contact a trained professional.
However, creating a do-it-yourself real estate plan is a big money saver. One of the most famous online property planning products is Trust and will. As the name suggests, Trust & Will helps you legally draft and sign trust and will and guardianship documents. For probate, you will have a starting price of $159, and custody papers will be only $39.
Read more: Everything You Need to Know About Online Trusts and Wills in the United States
Documents you need in a real estate plan
The specific paperwork you need to complete will vary slightly depending on your family’s needs, but there are some common items required for all real estate plans. This includes:
Last will and testament
Your will determines who gets all your things after your death. This includes assets such as a home, vehicles, investments, collectibles, patents, and more. In addition, here you will name the guardians of your children.
financial power of attorney
This plan is for when you are alive but for some reason unable to make your own financial decisions. You can transfer to someone the legal right to make all financial decisions for you, including those related to your business, your accounts, debts, etc.
Medical Power of Attorney
Like your financial power of attorney, your estate plan must specify who can make health care decisions for you if you cannot make those decisions yourself.
legal documents
Any important legal documents you have should be included in your property plan. This may include marriage documents, adoption documents, business licenses, etc.
Passwords for all online accounts
Most of our lives are spent online these days, so you’ll want to give your family any usernames and passwords associated with online banking, investment accounts, social media, etc.
financial information
This includes bank accounts, insurance information for all policies, mortgages, loan documents, vehicle ownership, and any other financial information associated with your name.
Titles and documents for all real estate
Real estate is probably one of the biggest assets you own and will pass on to your family after your death. The last thing you want your family to face is losing ownership of your home or rental property.
The funeral
You can decide, while you are alive, what your funeral will look like. Any last wishes you may have should be set out in your property plan. Explain if you want to be buried and where, if you want to be cremated, what kind of funeral you want, and any supporting documents if you have already purchased the plot.
Who should have a real estate plan?
All LGBTQ+ families with joint property
Any LGBTQ+ family, married or not, who jointly runs a business or has an expensive joint property should consider a basic estate plan. In case something happens to one member of the family, the rest of the members can be protected.
Families with children, especially adopted children
Children should have the right to loving, caring and supportive families. But this does not mean that children from some LGBTQ+ families have not been denied this right.
Currently, all 50 states allow same-sex adoption, but having the added protection of an inheritance plan ensures that if these laws ever change, your will is done correctly and your partner(s) and children are protected by law.
Married LGBTQ+ couples
With the state of same-sex marriage currently in limbo, I would personally recommend that all LGBTQ+ married couples consider putting together an estate plan. Just like straight couples need an estate plan that will protect their family from lawsuits, so do LGBTQ+ couples.
Summary
Site planning is an important process each the family must go. It protects your property and children in the event of your death and may even benefit you while you are alive.
But given that our legal rights are often at stake, estate planning should be an even more important priority for LGBTQ+ families. Having additional protection may be the best legal way to ensure your family is taken care of in the event of a tragedy.