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.