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Estate Planning for Unmarried Couples | Atlanta Estate Planning Lawyer

Estate Planning for Unmarried Couples | Atlanta Estate Planning Lawyer

While married couples are most obviously in need of the services of an estate planning lawyer in Atlanta, unmarried couples may actually need it more. It’s a pretty well known fact that when a married spouse passes away, the other will likely inherit a considerable portion of the estate, simply by virtue of the legal marriage.

But, what about folks who are cohabitating but not legally married? The situation for them can become much more dire should one partner pass away without a solid estate plan in place. For example, even if the couple lives together in a home, if one partner dies, the other may have no legal right to the property—even if he or she helped pay for it!  It is unfortunate, but estate planning lawyers in Atlanta have seen far too many situations where adult children have kicked their deceased parents’ partner out of a home so it could be sold for the proceeds.

In order to avoid this kind of drama, an Atlanta estate planning lawyer may recommend that assets be titled in both partner’s names, with both listed as joint tenants with rights of survivorship. There are potential tax implications to taking this step, so check with your attorney to weigh your options. It is also possible for the couple to set up a situation where a surviving partner is allowed to continue to reside in a home until his or her death, having the property then pass on to the original parter’s children.

As an illustration, pretend that Joe was married to Louise, and they had three kids together. Louise passed away, and sometime later, Joe fell in love and moved in with Kelly. Unfortunately, Joe’s now-adult children don’t approve of Joe’s relationship with Kelly.  If the couple doesn’t create a legally-binding plan with an estate planning lawyer, Joe’s kids could kick Kelly out of the house upon Joe’s death.

We’ll take this a step further and say that even though they’re not supportive of Joe’s choice, he still loves his children and wants to make sure they eventually inherit the house to pay for their children’s education or whatever. But, he also wants to make sure that they cannot remove Kelly from the house out of spite or greed. Joe and Kelly could put together a plan of action with their Atlanta estate planning lawyer to stipulate that Kelly has the right to live in the house until death, and then it would become the property of Joe’s children.

This is just one scenario in which an unmarried couple would want to consider getting legal advice. Meeting with an Atlanta estate planning lawyer is a good way to find out if there are concerns that you aren’t even aware you should have based on the fact that you and your partner are not legally married.

Estate Planning for Same Sex Couples in Georgia

estate planning for same sex couples in Georgia

The U.S. Supreme Court is set to decide in a matter of days, or even hours, whether the Constitution requires states to allow same-sex marriage. While many same-sex couples have been awaiting a decision, waiting may not be the best strategy. To gain control of life decisions and estate planning, same-sex couples should put their wishes in writing now without waiting for the Supreme Court decision.

A little background:  The top court has heard arguments on cases brought by 15 same-sex couples in four states and is expected to issue their decision this month. If the court rules in favor of the plaintiffs, all states will have to recognize same-sex marriages. (Currently, 36 states do so.)

But don’t expect a ruling in favor of same-sex marriage to clear the muddy marital waters. When it comes to estate planning matters, the hodgepodge of rules that apply state-by-state to married couples, whether same-sex or opposite sex, will continue. Estate planning for same sex couples in Georgia should be something done sooner, rather than later.

Regardless of the Court’s decision, when it comes to same-sex estate planning matters, couples should be taking steps now to make their plan bullet-proof. By “bullet-proof” I mean designing an estate plan that addresses their specific wants and needs and keeps them in control. A couple’s own plan is always better than someone else’s and without an estate plan of their own, a couple is subject to the default rules of their state – not an attractive option.

One option to carefully consider: a revocable trust, which can be useful in distributing assets to the beneficiaries and allow heirs to avoid the time and expense involved in the probate process. Additionally, a revocable trust offers flexibility, allowing the couple to modify and update the plan as their circumstances change.

Another important consideration for same-sex couples is how they want the courts to treat their children. The same-sex couple with children has to be treated as a blended family. The question of parental rights must also be addressed. For instance, what happens to the rights of the biological parent who is not part of the couple? A same-sex partner who is not a biological parent should consider adopting the child to establish his or her rights.

If same-sex couples are not proactively planning, the courts in each state will be making the decisions for them. Bottom line: the default rules in most states are woefully inadequate and no one – either opposite sex or same-sex couples – should ever have to rely on default rules.

Planning will be especially critical for same-sex couples if the Supreme Court allows states to continue to have their own rules on who can marry; however, even if the high court decides in favor of same sex marriage, proactive planning is still essential to maintaining control of one’s life and assets.

SOURCE: WealthCounsel

A Priceless Valentine’s Gift In Times of Uncertainty

Marietta GA Estate Planning Lawyer suggests the Ultimate Gift of Love for your family : an up-to-date estate plan!

Marietta GA Estate Planning Lawyer suggests the Ultimate Gift of Love for your family : an up-to-date estate plan!

 

With budgets tight and uncertainty in the air, this Valentine’s Day is the perfect time to give your loved one a priceless gift that never grows old — financial security.

Sure, you can’t stuff it in a box or wrap it with a pretty bow, but taking the time to get your financial and legal affairs in order this month is the ultimate way to show your loved ones just how much you care now, and for the future.

Think about what would happen if you were disabled, incapacitated or passed away suddenly this year. That expensive night out you spent with your “special someone” won’t do much to ensure he or she will continue to thrive in your absence. A less exciting, but meaningful gift of life insurance, for example, would have been a better expression of your love during hard times.

And, when is the last time you updated your will or trust? Are you certain that your wishes would be honored and your loved ones would be taken care of exactly as you want in an emergency? This includes minor children who, without legal guardians named for them by mom and dad, will be at the mercy of the courts.

Legal and financial planning is the ultimate way to demonstrate your love for your family where it counts the most. Make a commitment to not put it off any longer and use this Valentine’s Day to give your loved ones the long-term financial security and peace of mind they deserve.

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Steve Worrall is the Family Estate Planning Lawyer for Georgia Estate Plan: Worrall Law LLC in Marietta and Atlanta. If you’d like to give your loved ones and yourself the gift of peace of mind, please call Steve at 770-425-6060 or email him at steve@georgiaestateplan.com.

Image courtesy of cuteimage at FreeDigitalPhotos.net

Estate Planning for Same-Sex Couples in Georgia

estate planning for same-sex couples in Georgia

It’s not unusual for legislation to affect the realm of estate planning. From tax implications to guardianship of children, an Atlanta estate planning attorney has to keep up with the ever-changing legal landscape.  This is certainly true when it comes to estate planning for same-sex couples in Georgia.

The legal aspects of a same-sex relationship often fall under the category of contract law in states where these relationships are not legal. It can be complicated, and in order to protect your property and your relationship, it is highly recommended to work with an experienced estate planning attorney.

There are several issues which need to be clearly addressed.  Keep in mind, too, that this is just an introduction, and there are many other considerations to make with your lawyer.

Powers of Attorney

If one partner was to fall ill, would the other be allowed to make medical decisions for him or her?  If a medical power of attorney has not been created, then the answer is likely “no.”  The decision-making role would go to a blood relative.  The same is true of finances.  In order for one partner to have control of the other’s finances during an illness or after death, a financial power of attorney needs to be in place.

Planning for Assets

While legally married couples have the protection of assets usually being passed directly to a spouse, same-sex couples do not typically enjoy these same considerations.  That’s why it is important to make sure that you name your partner as your beneficiary when and where you can.  Some possibilities include:

  • Bank Accounts
  • Life Insurance Policies
  • Mutual Funds/Stock Portfolios
  • Retirement Plans

Your estate planning attorney in Atlanta will have a comprehensive list of assets which should be considered when naming beneficiaries.

Taxes

Estate and gift taxes are another area in which same-sex couples don’t have the same protections as those who are legally married.  For example, legally-married spouses can gift their money and assets to their spouses without facing huge tax repercussions later.  Inheritance taxes have received considerable attention as of late, but the fact is those who don’t have the protection of legal marriage are still going to pay more than others.

Your estate planning attorney in Atlanta can help create ways to limit the amount of taxes which would be expected after the death of one partner.  This can be achieved through well-thought-out gifts, living trusts, and other means.

The fact of the matter is same-sex couples need to put time and effort into the estate planning process in order to ensure their partners receive what they are entitled to receive.  While estate planning really should be done by all kinds of couples, there are some safeguards in place to protect those who are legally married, and these options are just not yet available to same-sex couples in Georgia.  In the meantime, it just makes good sense to set up a meeting with a reputable attorney and add some peace of mind to your relationship. Our Marietta Georgia estate planning firm can help.

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