Heritage Legal, PC

(760) 325-2020 info@heritagelegal.com

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PERILS & PITFALLS�Seven Deadly Sins of LGBT Financial & Estate Planning

Presented by:

�H. Christopher Heritage, Esq.

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• Durable Powers of Attorney
• Advance Health Care Directives
1. Choose an agent(s) that will follow your directives
2. Notarize the documents
3. Have a detailed conversation with your agent(s) on your framework for making end of life decisions
4. Consider completing a Dementia Directive

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No. 7: Failing to plan for incapacity.

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No. 6: For RDP’s and same-sex married

couples, not understanding community �property and community debt.

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Every dollar earned is ½ your spouse and/or partner’s�

Community property is generally vulnerable

to creditors of both spouses and/or partners

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Have a conversation with financial and legal professionals regarding community property before getting married or becoming RDP’s. Consider MediCal, ADAP and other benefit implications.

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No. 5: Estate planning using joint tenancy only.

Tax Issues: IRS presumes 100% of asset is in the

estate of the first spouse and/or partner to die

Control issues: Nothing goes to other heirs of the

first spouse and/or partner to die

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Intent: Discuss what you want with your spouse and/or partner regarding your share of the assets and plan accordingly

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No. 4: Having a Will instead of a Living Trust.

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Estate may go through probate

− Probate is public

− Probate is slow

− Probate is expensive

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Wills provide no protection in the event of incapacity

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Have a conversation with a legal professional about the pros and cons of a trust, and what is right for you

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Consider a California Licensed Professional Fiduciary

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No. 3: Leaving assets to your surviving spouse and/or partner outright rather than in an inheritance trust.

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Tax issues: Can lead to 2X tax

Control issues: Nothing goes to other heirs of first spouse and/or partner to die

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Discuss the pros and cons of an inheritance trust for your spouse and/or partner versus outright distribution

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No. 2: If you’re married and/or in an RDP, not having a joint trust.

Most couples who did estate planning prior to 2013 have individual trusts

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Recent SCOTUS rulings have eliminated the need to have individual trusts (though they still may be beneficial in some circumstances)

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If you’re married and/or an RDP, having an individual trust means that at the death of the first spouse and/or partner there must be a full trust administration. Joint trusts do not have this issue

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No. 1: Failing to maintain your estate plan.

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Stale beneficiary designations

Neglecting to keep assets titled in the name of your living trust

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Not reviewing your estate plan regularly (every 3 years) and discussing whether it still matches your intent

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No. 7: Failing to plan for incapacity.

No. 6: For RDP’s and same-sex married couples, not understanding

community property and community debt.

No. 5: Estate planning using joint tenancy only.

No. 4: Having a will instead of a living trust.

No. 3: Leaving assets to your surviving spouse and/or partner outright rather

than in an inheritance trust.

No. 2: If you’re married and/or in an RDP, not having a joint trust.

No. 1: Failing to maintain your estate plan.

Just do something.�It all starts with a conversation.

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“Thank you!”

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H. Christopher Heritage

Heritage Legal, PC

Palm Springs, California

(760) 325-2020

chris@heritagelegal.com