The threat against gay marriage is real, but let’s also keep in mind that states have historically been in charge of handling the issue of marriage. This means that even if protections are stripped away by the federal government, states like New Jersey may still uphold fundamentals of gay marriage. The problem is, if not federally recognized then issues occur with the IRS or if you move to or do business in (or die in) another state. There is no 100% way to protect yourself against losing any of the benefits of gay marriage, but there are workarounds to protect your family that should be implemented now.
- Estate planning. All married couples need estate planning, but now more than ever LGBTQ families need to get it done. Here’s a couple things that estate planning can do: you can make sure that even if your marriage is invalidated or pierced in the state you are in, you are leaving property to your spouse as you please via a will, and a living will, healthcare power of attorney and power of attorney allow them to care for you even if the legality of the familial relationship is questioned. The damage in New Jersey comes with an increased exposure to inheritance tax if you aren’t married (this is something to think about even if you are together but intentionally not marrying). I often suggest that life insurance is a way of making sure you shore up the financial benefit to your spouse without the taxation issues, and purchasing enough life insurance to cover inheritance tax makes a lot of sense particularly if the primary asset is a home you don’t want your partner to have to sell. You also want to make sure you have documented who is in charge of your funeral wishes.
- Trusts. These are more useful in some states than others and are absolutely more useful in certain factual situations than others. You need a lawyer to analyze whether this is useful for you – and frankly the answer may change if gay marriage in New Jersey is damaged and how that happens — so check in regularly with your attorney as things change.
- Adoptions. If you are the second parent of COURSE you’re that child’s parent. But maybe not under the law, so make sure you assure your absolute rights to your child. New Jersey has made second parent adoptions relatively streamlined and therefore less expensive so now is the time to get it done.
- Beneficiary establishment and Benefits tracking. Make sure your beneficiaries on all your retirement accounts and life insurance is correct and check with your own Human Resources department about anything that may affect your spouse’s rights to your benefits based on changes as they occur not just in your home state, but if you work for a larger corporation in the state in which they are incorporated or have principal places of business.
- Check with your accountant/financial advisor for any concerns about how taxation federally may be impacted. See an accountant who is up to date on these issues and will carefully analyze your unique financial situation.
We are here for you if you need assistance figuring out what else you can do to protect your family. Call for a free consult 856-227-7888.