• 30
  • June
    2011

When most people think about estate planning, they think about taking steps to protect their husband, wife or children. However, there are numerous couples today that break the traditional definitions of family. Without proper planning, gay and lesbian couples who live together, and other couples who live together but are not married, may have few legal rights to their partner's assets if he or she dies.

Effective estate planning helps couples ensure the financial well-being of their loved ones is protected. Rather than facing tax penalties from the IRS or leaving asset distribution to Florida officials, you can make sure your medical rights, children and financial assets are protected.

If you become incapacitated, it is important to make sure a loved one can make medical decisions on your behalf. Although medical powers of attorney and living wills are different, they can both help ensure your loved ones have the power to make medical decisions on your behalf. A living will also allows you to express preferences regarding what type of life-saving measures you would like taken.

Estate planning can also be used to protect your children. If you have children under the age of 18, you can name a guardian to take care of your children until they are adults. In the event of an accident, an estate plan can be used to transfer assets to your children, and it can be used to designate money to be placed in a trust until your children are old enough to use the money responsibly.

When you think about who should receive your assets after death, there are numerous tools you can use. Filling out beneficiary forms enables individuals to help ensure their loved ones are the designated recipients of IRAs, 401(k) plans and life insurance policies.

Source: Investing Answers, "3 Financial Protections for Live-In Partners," Gwynneth Anderson, 28 June 2011