Planning for Non-Traditional Families: Estate Planning Tips for LGBTQ+ Couples in Nevada
Estate planning is crucial for everyone, but it holds particular significance for non-traditional families, including LGBTQ+ couples. Nevada, with its progressive stance on LGBTQ+ rights, offers favorable laws for same-sex marriages and families. However, estate planning for LGBTQ+ couples involves unique considerations that ensure the protection and future security of loved ones. Here are essential estate planning tips for LGBTQ+ couples in Nevada.
1. Establish or Update Your Will
A will an essential element of any estate plan, however, all wills are subject to probate. For LGBTQ+ couples in Nevada, having a legally sound will is crucial, if you do not have a trust, particularly if there are non-biological children or estranged family members. Without a will, Nevada's intestacy laws may result in assets passing to biological relatives rather than the intended partner or children. By clearly outlining beneficiaries and guardianship wishes for children, a will helps to safeguard the family's future. While a Trust is a better instrument, if you have a simple estate, a Will is the very least you need.
2. Consider a Living Trust
In Nevada, a living trust is an effective estate planning tool for LGBTQ+ couples. Unlike a will, a living trust allows assets to bypass probate, enabling faster distribution to beneficiaries, and vastly reduces the fees of administration in most estates. This can be especially advantageous for LGBTQ+ couples who wish to ensure a smooth transfer of assets to their partner without potential family disputes. A trust also provides privacy since it does not become public record, unlike a will.
3. Establish Legal Guardianship for Minor Children
For LGBTQ+ couples raising children, legal guardianship is a vital concern. Nevada law may not automatically recognize the non-biological parent as the legal guardian, even in a marriage or domestic partnership. Therefore, it’s important to name the non-biological parent as the legal guardian in both your will and a separate guardianship document. Naming a guardian for your children is vital to protect their wellbeing and safety in the event something happens to both parents, otherwise the Court may consider an estranged family member instead of your partner or spouse.
4. Utilize Advance Healthcare Directives
Advance healthcare directives, including a living will and healthcare power of attorney, are essential for LGBTQ+ couples. These documents specify your healthcare wishes if you become incapacitated and designate your partner to make medical decisions on your behalf. You do not have to be married or in a domestic partnership to name your partner in your Health Care documents. In Nevada, having these directives in place helps prevent potential disputes with family members who may not recognize your partner's rights in making critical healthcare decisions.
5. Financial Power of Attorney
Granting your partner financial power of attorney allows them to manage your financial affairs if you become unable to do so. In Nevada, this document can help protect LGBTQ+ couples from interference by unsupportive family members and ensure that your partner can handle necessary transactions, access bank accounts, and manage investments.
6. Review Beneficiary Designations
Many assets, such as life insurance policies, retirement accounts, and bank accounts, pass directly to the designated beneficiaries, bypassing probate – and the estate plan. LGBTQ+ couples should review these designations regularly to ensure they reflect current wishes. This step is particularly crucial in Nevada, where the default laws might not account for non-traditional relationships if beneficiary designations are outdated.
7. Plan for Property Ownership
In Nevada, real estate and property ownership require special attention. Couples can hold property as “joint tenants with rights of survivorship,” or “community property with rights of survivorship,” or “tenants in common.” Each has its own flavor and benefits, each should be reviewed with an attorney. Changing title should be carefully considered as many times what seems a simple change in title can have unintended consequences. (It is generally advisable to NOT add children or other third-parties to title for many reasons). Alternatively, a couple may create a trust to manage property ownership according to specific wishes. This planning is especially helpful for LGBTQ+ couples who may face challenges with family members contesting property rights.
8. Take Advantage of Nevada’s Tax Benefits
Nevada does not impose state-level estate or inheritance taxes, which can benefit LGBTQ+ couples. However, federal estate taxes still apply. Proper estate planning, including using the unlimited marital deduction and gifting strategies, can help couples minimize federal tax liabilities and maximize the assets passed on to their loved ones.
9. Domestic Partnerships vs. Marriage
Nevada recognizes both domestic partnerships and same-sex marriages. However, there are differences in legal rights and estate planning implications between the two. For instance, married couples may benefit from federal tax benefits, while domestic partnerships will not. LGBTQ+ couples in domestic partnerships should be mindful of these distinctions and discuss their estate planning needs with a licensed attorney.
10. Consult an LGBTQ+-Friendly Estate Planning Attorney
Given the unique challenges and considerations for non-traditional families, consulting with an LGBTQ+-friendly estate planning attorney, such as Surratt Law Practice, is invaluable. An attorney familiar with state-specific laws and LGBTQ+ issues can guide you in creating a comprehensive estate plan that aligns with your family's needs and safeguards your wishes. Especially in the current political climate. There are many ways to protect your relationship, making sure you engage a skilled attorney who is familiar with issues facing the LGBTQ+ community is essential.
Final Thoughts
Estate planning for LGBTQ+ couples in Nevada involves special considerations to protect partners, children, and assets. By taking proactive steps, such as establishing a will, disinheriting problematic family members, setting up trusts, and designating healthcare and financial powers of attorney, you can ensure that your loved ones are protected, and your wishes are respected. With Nevada's favorable laws, it's possible to craft an estate plan that provides security and peace of mind for your non-traditional family.