Nontraditional Family Law

The Importance of a Health Care Proxy

In February 2007, Janice Langbehn's partner of 18 years, Lisa Marie Pond suffered an aneurysm while they were on vacation in Florida. At the hospital Janice was told that she would need a healthcare proxy before she could see her partner. "When I finally was allowed to see Lisa it was with a priest to perform her last rites."

If you don't have one, please consider a health care proxy and other estate planning documents. See the Estate Planning Category for more information.

Read the whole story here.

Source for Post: Human Rights Campaign Foundation

Estate Planning Category

New Study on Gay Baby Boomers

• 51% have not completed wills or living wills
• 1 in 5 are unsure who will take care of them when the need arises
• Over 75% have "families of choice" - close friends who are considered family
• Almost half want to spend their final days at home with hospice care

What do these statistics mean to you?
Maybe you can identify with one or more of these statements. If so, the best way to ensure that your wishes are followed are to complete a will, a heath care proxy (medical power of attorney) and a living will. Without these documents in place, people you consider family may not be able to make decisions for you or on your behalf and your loved ones may not be able to inherit from you. For more information on these documents and other important life planning documents, click here.

Source for post and link to study: Human Rights Campaign Foundation

Technorati Tags: Alternative Family, Estate Planning, Nontraditional Family

Why You Really Need Health Care Planning Documents

On her blog, Massachusetts Estate Planning and Elder Law, Leanna Hamill has a great post and story illustrating why a health care proxy and power of attorney are so important. Suppose your partner is in an accident and is admitted to the hospital. As a non-relative, you can't get information from the hospital about her condition. And what if a decision regarding surgery needs to be made? In the absence of these important planning documents, you can't make that decision.

There are several terms used to describe health care planning documents. The definitions vary by state, but in general can be described as follows:

• Living Will - allows a person to describe in advance what treatment options they authorize in the event they should have a terminal and irreversible condition. For example, a person may declare that they want doctors to withdraw or withhold life-sustaining procedures, such as artificial means of respiration.
• Special Medical Power of Attorney (also known as a "Health Care Proxy') - allows a person to designate another individual who can give consent to medical procedures. The document can be effective whether or not a person's condition is terminal and irreversible.
• Durable Power of Attorney - allows a person (the "principal") to designate another person as "agent" to make variety of decisions on behalf of the principal, usually involving finance and business transactions. In the medical context, this document might give the agent access to funds in the principal's bank account to pay hospital bills.

Technorati Tags: Alternative Family, Estate Planning, Nontraditional Family

The Pension Protection Act: Benefits for the Nontraditional Family

The Pension Protection Act of 2006 wasn't necessarily intended to benefit nontraditional families, but at least one aspect of the new law does just that. The Act allows a non-spouse beneficiary of a corporate sponsored retirement plan to rollover inherited plan assets to an "inherited IRA" and receive distributions based on their life expectancy. Under prior law, only spouses could make a direct rollover; other beneficiaries (partners, children, etc.) could be forced to withdraw the entire amount over a very short time frame resulting in higher income taxes for the beneficiary.

In order to take advantage of the new non-spouse beneficiary rules, contact your plan administrator to make your partner, child etc. a beneficiary of your retirement account. Upon your death, your new beneficiary will be allowed to rollover the proceeds to his or her own inherited IRA. The law is effective as of January 1, 2007.

The Act has other provisions that may benefit you and your family. For example non-spouse beneficiaries may now be eligible for hardship distribution rules that apply to certain qualifying medical and financial situations. The Act also allows certain older taxpayers to make direct transfers to a charity instead of having to withdraw the funds, pay taxes on them and then contribute them to charity.

To read more about the act, click here.

Technorati Tags: Alternative Family, Estate Planning, Nontraditional Family

Life Planning for the Non-Traditional Family

Ozzie & Harriet, June & Ward move over - According to the latest census, only 24% of U.S. households consist of married couples with kids. In their place is an ever-widening definition of family, such as grandparents caring for grandchildren, adult children caring for aging parents, elderly couples who chose not to marry, same-sex partners (with or without children), divorced parents raising kids alone, step-parents with blended families, adoptive parents, etc.

Non-traditional families want the same peace of mind as other families when it comes to managing, protecting and passing on assets to future generations. However, non-traditional families can't rely on the backdrop of laws that apply to the traditional, nuclear family. For example, laws regarding government benefits for survivors, inheritance, property division and child custody typically don't apply to non-traditional families. That's why its important for the non-traditional family to consider life and estate planning alternatives such as:

• Domestic Partnership or "Living Together" Agreement - Contract between people living together that includes details regarding who owns property, how it will be divided, how finances are managed etc. It is similar to a prenuptial agreement.
• Parenting Agreement - Allows a biological parent to designate a guardian for her child such as a co-parent, friend or family member. The guardian can also be given the power to make medical decisions for the child. This type of agreement might also include clauses describing support for the child, custody and visitation.
• Power of Attorney - One person (the "principal") designates another (the "agent) to act on his behalf. The agent can be given broad power to make decisions regarding the principal's financial and business affairs. The principal can also sign a power of attorney for more limited purposes such as health care decisions or selling a home.
• Living Will or Advance Directive - Directs your doctor to use or refrain from using artificial means of life support in the event you are in a terminal and irreversible condition.
• Will - A will allows you to designate who gets your property when you die. In the absence of a will, state law makes this determination. In the case of a non-traditional family, the result may not be what you intend. For example, many states provide that your property goes to your spouse upon your death. If you don't have a legally recognized spouse, the property may go to your parents or siblings and leave your partner out.
• Funeral Arrangements - Allows you to detail exactly how you would like your funeral to be carried out. Without this type of document, the law will look to blood relatives to make these decisions.
• Nomination of a Guardian or Conservator - You can designate who is to make decisions for you in the event you are incapacitated.

Technorati Tags: Alternative Family, Domestic Partnership, Estate Planning, Nontraditional Family