Estate Planning For Non-Traditional Families - Part 3

If you're in a non-traditional family, you know that estate planning is, as Winston Churchill once said about Russia, "A riddle wrapped in a mystery inside an enigma." But here's some advice that'll help.

DOMESTIC PARTNERSHIP/LIFE PARTNERSHIP AGREEMENT

This can be a helpful tool, because it can specify the boundaries and responsibilities of the arrangement. And it can be helpful even if the relationship is non-romantic.

A Life Partnership Agreement can establish how property is owned and titled. It can establish whether income, gifts, or inheritances belong to one partner, or both. It can establish who does what around the house, and who pays for what. And it specifies how finances and ownership will be determined if the relationship ends.

Additionally, this agreement can provide legal evidence of the relationship if it's ever needed.

WHAT ABOUT KIDS?

If there are kids involved, a Parenting Agreement might be beneficial...especially if you ever have to prove in court that you and your partner have agreed to care jointly for the children. One caveat: In most states, courts are not bound by Parenting Agreements; they simply have to provide for the best interest of the child. But if a surviving partner can show a Parenting Agreement in which both partners have provided for the best interest of the child, your chances are better. Also, like a Life Partnership Agreement, a Parenting Agreement can delineate specific responsibilities when it comes to caring for the child(ren), and who pays for what.

The laws are very confusing, and always changing. And they vary from state to state.

Estate planning for non-traditional families can be a complex and tiring legal journey. But we can get you through it.

At The Law Offices of Alice Reiter Feld & Associates, we've been walking South Florida families - both non-traditional and traditional - through the Elder Law Journey for 34 years. And we've helped thousands of them establish estate plans appropriate for them - with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

We'll get you through the Elder Law Journey. And we're just a phone call away.

Estate Planning For Non-Traditional Families - Part 2

Some of the most important estate planning areas for a non-traditional family are living wills, health care directives, and powers of attorney.

If two people aren't legally married, or related by blood, they may as well be strangers. The Florida case of Langbehn v. Jackson Memorial Hospital was a perfect example. One of the partners in a non-traditional family from Washington state died from an illness during a vacation here. As if that wasn't tragic enough, the family wasn't allowed to visit the dying partner - or even receive updates - until a blood relative arrived.

In this situation, many states consider blood relatives as the only legal family...and the consequences can be devastating. Relatives who are estranged from the sick person may be allowed to make health care decisions, and may be given control of children, the home, and the property. And the partner will have little - or no - legal recourse. In some states, the partner doesn't even have the right to live in the family home while legal proceedings are taking place.

Non-traditional families should also have health care proxies and HIPAA authorizations - even if their state recognizes their union.

Demographic trends in recent years have resulted in dramatic changes in what constitutes a "family" in this country. And I've had a number of non-traditional families or partners come to me heartbroken...because they didn't take the time to get the necessary protection.

The laws are horribly confusing. And, of course, they vary from state to state.

Estate planning for non-traditional families is a minefield, fraught with traps. But we can get you through it.

At The Law Offices of Alice Reiter Feld & Associates, we've been walking South Florida families - both non-traditional and traditional - through the Elder Law minefield for 34 years. And we've helped thousands of them establish estate plans appropriate for them - with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

We'll get you through the Elder Law minefield. And we're just a phone call away.

Estate Planning For Non-Traditional Families - Part 1

I'm being contacted by an increasing number of non-traditional families these days...with good reason.

Non-traditional families are becoming the one of the biggest demographics in America. Whether gay or lesbian (legally married or not), divorced with children, "significant others" living together, etc., all of us know people in this arrangement. Considered abnormal just a few years ago, this is rapidly becoming the most "normal" type of family in America.

This is especially significant when people are planning their estates...because, until recently, this was uncharted territory. Elder Law attorneys now have new tools in their toolboxes for these families. But if you don't plan accordingly...you're running a huge risk.

TAXES

One of the biggest differences in tax-planning is that non-traditional families have no marital deductions. Married couples, on the other hand, can give money to each other, combine their assets, name each other as beneficiaries, and hold prop­erty and bank accounts jointly.
In a non-traditional family, if one partner contributes more to the household, and an effective plan is not in place, the partner who earns more could actually be taxed if the larger contribution is considered a gift by the IRS!

PROPERTY

Most non-traditional partners believe that joint tenancy, with right of survivorship, is the obvious choice. But that's not always the case!

In addition, title to the property can also affect taxes on the property. In Florida, the transfer of property between unmarried partners can result in reassessment of property taxes. ..even if it was held in joint tenancy!

Confusing? You ain't heard nothin', yet!

Estate planning for non-traditional families is a minefield, fraught with traps. But we can get you through it.

At The Law Offices of Alice Reiter Feld & Associates, we've been walking South Florida families - both non-traditional and traditional - through the Elder Law minefield for 34 years. And we've helped thousands of them establish estate plans appropriate for them - with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

We'll get you through the Elder Law minefield. And we're just a phone call away.

Supreme Court Decision Removes Obstacles to Non-Traditional Marriages

Two landmark court decisions last week opened new doors for non-traditional couples. And estate planning for such couples will never be the same.

The Supreme Court ruled that the Defense of Marriage Act (DOMA) violates the Fifth Amendment, by denying Federal benefits and programs enjoyed by opposite-sex couples to gays and lesbians who are legally married in their states. Gay and lesbian spouses cannot get tax-free health benefits from employers. They can't file joint federal tax returns. They're not recognized for insurance benefits or Social Security, nor the marital estate tax exemption. 

The court's decision says that DOMA unconstitutionally denied Edith Windsor an exemption from federal estate taxes on her wife's estate, even though New York State, where she lives, recognizes same-sex marriage. This decision affirms the rights of same-sex couples in the eleven other states (and D.C.) that have legalized same-sex marriages. (Florida, of course, hasn't.)
DOMA, enacted in 1996, defines marriage for federal law purposes as the legal union of one man and one woman.

In another important case, the Supreme Court refused to rule on a same-sex marriage ban approved by California voters in 2008. Instead, they sent the case back to a federal district court there - which had already barred the state from enforcing the law.

Statistics don't lie...momentum is on the side of same-sex couples. Nearly a third of Americans live in states with legalized same-sex marriage. In the latest Pew Research Center survey, 72% of Americans called legalization "inevitable." And several more states may adopt legislation soon.

Estate planning for non-traditional couples has always been tricky. And now that the rules of the game are changing, it's even trickier.

If you're part of a non-traditional couple, you've probably got a lot of questions. We can answer them.

At The Law Offices of Alice Reiter Fled, we've been addressing estate planning problems for South Florida families - all types of families - for the past 34 years. And we've helped them secure their futures, and their wishes...with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

No matter what type of family you're in, we can help. And we're just a phone call away.

Gay Marriage in New York: Before You Take the Plunge

Gay couples: Think twice before running up to New York to tie the knot. Along with the rights and benefits of marriage come the responsibilities. And there are a few catches!

Firstly. The marriage will not be recognized in Florida. This means that any rights, benefits and responsibilities afforded married couples in Florida will not be afforded to same-sex couples who marry out of state.

This is because of the Defense of Marriage Act (DOMA), passed in 1996, which precludes states from recognizing same-sex marriages that happen out-of-state. So no Social Security, spousal, death or survivor benefits, and no spousal Veteran's benefits are available in Florida.

So what happens if a same-sex couple marries in New York and moves down to Florida . . . are they still married? Probably not - at least for now. Only time will answer these questions as more and more states adopt same-sex marriage.

The second catch is that being married may give your partner rights that you may not want to give. After all, may couples choose not to get married for a variety of reasons. Simply because same-sex marriage is available, does not mean you should take advantage.

For example, among other things, married couples have the right to take a portion of a deceased spouse's estate, possible spousal support, responsibility for paying for nursing home care and the right to make health care decisions. All couples, especially senior citizens, need to address all these issues before deciding whether marriage serves these and other needs.

Whether married or not, these are issues that all couples face in planning their estate and long term care needs, and providing a legacy. For seniors, my opinion is that it is an unnecessary complication. Now gay people in New York have the absolute right to complicate things for themselves, too.