Crash Course: Estate Planning II

We learned last week why estate planning for the GLBT community is so important, and we learned about some things we need to have a solid plan. This week, we’ll discuss some other estate planning topics to think about.

A Living Trust allows you and your partner to pre-arrange your giving and avoid some probate inconveniences. Here’s how it works:

You and your partner put all assets into the trust and become both the trustees and primary beneficiaries of the trust.

At the death of the first partner, all property belongs to the surviving partner automatically.

At the death of the surviving partner, all property in the trust passes as designated in the trust, eliminating the need for probate.

Living Trusts are private; probate records are public.

Living Trusts can be less expensive because they avoid the costs of probate court.

Property in a Living Trust is accessible right away; most assets are not distributed in a probate action for six months.

Living Trusts avoid Kentucky Inheritance Tax assessed on non-relatives (including partners who have no legally-recognized relationship.

Best of all, nothing changes in the day-to-day living; you (and your partner) still manage the assets.

Other Issues for GLBT partners to consider:

Real Estate – You must state that there is a survivorship interest or there is none (without it each person owns ½ of the real estate).

Personal Property – Titled property and financial accounts should be in joint names.

“Beneficiary” accounts (life insurance, pensions, etc.) – These do not pass through the probate court unless the beneficiary is your estate – make sure your beneficiary designation is current.

That’s it for this week. We’ll see you next week when we discuss adoption and parenting.

In fairness,
Your KFA Team.