Just out., August 03, 2001, Page 15, Image 15

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hey simply want their relationship
recognized, say Pam Monette and
Elise Campbell, who have been
partners for five years. But without
the benefit of marriage, the law A living frust is an attractive estate planning option for sexual minorities
does not always recognize their relationship,
by T im o th y K rause
especially when faced with death or disablement.
"Because we can’t be married,”
Monette says, "there are ways we can’t
be there for one another if something
happens.”
As a remedy, she and her partner
each recently established a revocable
living trust as part of their estate plans.
In doing so, they have found a way to
honor their relationship and to provide
for each other within a legal context.
Like Campbell and M onette, many
same-sex couples are learning how the
relatively simple contractual arrange­
ments of a living trust can provide some
of the same benefits that come with Elise Campbell and Pam Monette
marriage.
Richard B. Schneider and Floreid Walker
“A gay or lesbian couple might have been
Because a trust is managed pri­
together for 50 years, but when one of them
vately and not administered through the
are to be distributed when you pass away. While
passes away without a will or a trust, the other courts, the disposition of the estate usually is you are still alive, however, you retain control of
one is out in the cold,” says Richard B. Schnei­ much quicker and less likely to be contested.
the trust, using its assets as you wish or even dis­
der, a Portland attorney who specializes in
Additionally, if you own property in more than
solving the trust at any time.
estate planning for sexual minorities. “We try one state, a living trust avoids multiple probate
Upon your death, no assets remain in your
proceedings.
by private contract to fill in the gaps that are
name; therefore, no probate is necessary. W ho­
missing and to provide the protections that are
Establishing a living trust is straightfor­ ever you name as your successor trustee controls
missing under the law that are there for mar­ ward. You name yourself as the trustee and
the distribution of the assets in accordance with
ried couples.”
either your partner or yourself as the benefi­ your instructions.
Floreid Walker, a senior financial adviser ciary. You transfer to the trust ownership of
A living trust also can be useful if you are
with Waddell & Reed, works with Schneider to
major assets such as stocks, bonds and real
facing serious health issues. Should you
offer a comprehensive approach to asset man­ estate.
become incapacitated, your successor trustee,
agement for gay men and lesbians. She explains
You also outline how and when your assets rather than someone appointed by the court,
one of the major goals of estate planning is to
retain control over what happens to your prop­
erty. “Do you want the court to be making deci­
sions for you?” Walker asks.
W ithout an estate plan, the state intervenes
state planning professionals recommend a revocable living trust be complemented by other
and makes decisions, often favoring immediate
instruments in order to be more effective.
family without regard to your partner or your
A pour-over will, for example, can be set up to transfer, upon your death, any remaining property
personal wishes. Even with a will, your estate from your estate into your trust. Although the property goes through probate, this provides a mecha-
proceeds through probate, the legal process nism for the disposition of any remaining assets and allows you to appoint guardians for minor children,
through which a court oversees the distribution
Should you become incapacitated, a durable power of attorney acts in similar fashion to a pour-
of your estate’s assets. Your will becomes a pub- over will. If you left assets out of your trust, your successor trustee can move them into your tmst on
lie record, and the probate process can be your behalf.
expensive and time-consuming, often taking as
Particularly important for gay men and lesbians is an advance directive for health care, which
long as a year to conclude.
empowers a representative of your choice to make treatment decisions for you, such as following
your wishes about life support.
A revocable living trust, on the other hand,
provides benefits of particular interest to sexual
Directions for the disposition of remains is another tool used to retain control over the body after
minorities.
a partner dies. W ithout it, the rights to determine disposition fall to immediate family.
Depending on the complexity of your estate,
Rather than draw on the assets of the trust, a simple life insurance policy can be set up to pay for
for example, a living trust might be less expen-
the final expenses of trust administration. A policy benefiting the trust is also a simple way to infuse
sive. More importantly, however, is that a living wealth into the lives of heirs or charitable institutions. Other insurance can provide for long-term
trust avoids probate, and this offers two key health care without having to tap the assets of a trust.
advantages. Unlike a will, a living trust does not
A partnership agreement is similar to a prenuptial agreement and covers a couple’s assets in the
become public record and therefore provides a event of dissolution of the relationship,
greater degree of confidentiality.
W here T here ’ s a W ill . ..
C omprehensive C overage
E
*
*
R ichard B. S chneider and F loreid W alker
jointly offer free estate planning workshops
specifically for sexual minorities. The next two
sessions are scheduled for 6:30 p.m. Oct. 16
at Kennedy School, 5736 N .E . 33rd Ave. in
Portland, and 6:30 p.m. Oct. 18 at Greenwood
Inn, 10700 S.W. Allen Blvd. in Beavertm.
Contact Schneider at 503-241-1215 or
tvww.rhsllc.com. Walker can be reached at
503-238-6036 or www.waddell.com.
Although he watches The Practice and balances his
checkbook, T imothy K rause says this article should
not be relied upon as a substitute for professional legal
or financial advice as to any particular situation.
W n Uc but £a(tn* puli evo n tU.
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e
steps forward to manage your estate for you.
This often is paired with other estate plan­
ning devices so one partner may act on hehalf
of another, just as one married spouse would
for another.
According to Schneider, the
| process to establish a living trust
8 takes as little as 30 days. Fees vary,
| but his office charges $1,575 to
| $1,750 for individuals and $2,575
□ to $2,750 for couples. Once the
§ legal agreement is established,
you simply transfer your assets
into the name of the trust.
“T he thing to remember,”
Walker suggests, “is to keep your
trust current.” T h at includes
keeping up-to-date designations
of successor trustees and benefi­
ciaries and continuing to trans­
fer assets as you acquire them.
Even with a will, assets not held
by the trust are handled through
regular probate proceedings.
O th er considerations, too, need to be
evaluated before im plem enting a living trust.
T he size of your estate is one example.
A lthough Schneider and W alker suggest
estates less than $140,000 might not benefit
from a trust, your holdings consist of more
than just your home and investments. Per­
sonal property and insurance proceeds are
examples of other assets th at should be con­
sidered part of your overall estate.
“Aside from some of the technical things, I
think there is an emotional side,” adds Walker,
who says the process often spurs among couples
the examination of crucial relationship issues.
“It kind of pulls people together. I think that it
opens up the discussion and helps to solidify the
relationship. It’s another piece that says, ‘We
are a unit.’ ”
Monette agrees. “In our struggle to be recog­
nized and validated in our relationships, I think
this is one way to do it.” jfT]
*
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