Blog & Resources

From Our “Ask a Question” mailbag: “What are the Estate Planning Advantages for LGBTQ Marriage?” “My partner and I are thinking about marriage.  But, I keep hearing that there are tax and estate planning problems caused by marriage. You are an estate planning lawyer, can you tell me the estate planning […]

From our “Ask a Question” mailbag: “After a 10-year relationship my Partner and I have parted ways. Previously, I gave him a General Durable Power of Attorney, but now he won’t return my Power of Attorney. Can he use this to empty my bank account?”

From our “Ask a Question” mailbag: I want to leave my long time partner my house. However, at his death I want it sold so the money can pass to my nieces. How can I make sure this happens?

This is a common issue with gay and lesbian couples. Often, one partner owns the house and—though they want their partner to be able to live in the house until the partner’s death — there is a concern about putting the house into the surviving partner’s name.

From our “Ask a Question” mailbag: My partner and I have been together for over 25 years. Marriage would be nice, but I have the most money and his family has a history of long life. I worry that if I die and I give him everything, he may outlive those funds.

“Veteran” lesbian and gay couples cannot be blamed for hesitating to tie the knot. After years of planning for retirement as two single people, getting married late in life can throw a curveball into the financial and estate planning game. Getting married changes your tax status and eligibility for various government benefits. So, like any other huge life decision, marriage should be examined with an eye for retirement and asset protection efficiencies.

I am a New Jersey resident. Now that I have married my partner, I would like to give her a General Durable Power of Attorney, but am concerned about surrendering so much power over my assets. I have heard stories about spouses abusing Powers of Attorney. How can I protect myself?

A general, durable power of attorney is a key part of any estate plan. A Will covers what happens to your assets if you have died, but the durable power of attorney is meant to cover the time when you are alive yet unable to handle your own financial affairs. The problem that exists, and of which you speak, is that if you give your Agent the power of attorney document, they have the power to withdraw from your bank accounts, sell real estate and gather your tax information.

Many people believe that if they are married without children, there is no need for a Will. They believe that if they die, all their assets will pass to their spouse. In New Jersey, that may not be true.

First let me give you some background. If you die a resident of New Jersey without having signed a Will, you are “intestate”, and the New Jersey Rules of Intestacy dictate who inherits your Probate Assets.

If you are a member of the LGBT community in Pennsylvania with a will, following your death your executor will take your death certificate, the original copy of your will, a checkbook and an ID card to the Register of Wills Office to be sworn in as the executor of your estate.

Being an executor means that this person is a fiduciary with many responsibilities and duties. Selecting the correct person for the job is a vital part of your estate plan.

Marriage is supposed to be for love and planning the wedding can be exciting, but take a few minutes and think about the less-fun aspects of your upcoming marriage such as the income tax ramifications. By spending some time thinking through various tax implications you just might have a happier…and more profitable…marriage.

Governor Chris Christie’s announcement on October 21, 2013 that he would not pursue an appeal of the New Jersey superior Court decision in Garden Stat Equality v. Dow means that same-sex marriage is here to stay in New Jersey. This means a same-sex marriage will result in the same tax treatment both with the IRS and with the New Jersey Division of Taxation. Equality is finally here, but some tax aspects of the equal treatment are advantageous and some are disadvantageous.

Marriage is supposed to be for love and planning the wedding can be exciting, but take a few minutes and think about the less-fun aspects of your upcoming marriage such as the income tax ramifications. By spending some time thinking through various tax implications you just might have a happier …and more profitable… marriage.

Governor Tom Corbett’s announcement in May of 2014 that he will not pursue an appeal of U.S. District Judge John Jones’ decision in Whitewood v. Wolf means that same-sex marriage is here to stay in Pennsylvania. This means a same-sex marriage will result in the same tax treatment both with the IRS and with the Pennsylvania Department of Revenue. Equality is finally here, but some tax aspects of the equal treatment are advantageous and some are disadvantageous.

Crafting an estate plan for a client means listening to what the client wants, explaining options to the client and then drafting a plan to meet the option selected. At times, a client’s circumstances require imaginative ideas. Here are some examples of imaginative estate planning that Klenk Law has utilized recently.

1. Protectors:
It remains a mystery to me why more estate planning attorneys do not use Protectors. A Protector is a person or persons you appoint to oversee a trustee with the power to fire and replace the trustee without the need of an attorney or a court hearing. No court hearing or attorney is necessary? Perhaps that is the reason why estate planning lawyers don’t use them? I use them in almost every trust. Even the most trusted person or bank can have problems, and if these problems negatively affect the trust, the Protector can “protect” the beneficiary without months of litigation.