With a few exceptions, the legal ramifications that apply to domestic partners are no different from a man and a woman lawfully married. Domestic Partners have property rights among other rights they enjoy, financial obligations they settle, and may even have parental rights and obligations to fulfill; hence estate planning is imperative. Just as spouse would tend to think about what will happen to their household in the event of a tragedy, it is normal for a domestic partner to be concerned about his/her life partner and their family especially in the event of incapacity or death. Increasingly in these difficult economic times people who are single are forming domestic partnerships to face lifes challeges as a team. A person who dies without a will in place practically allows distribution of his estate by operation of law. This distribution by operation of law is called intestacy where estates pass to biological relatives under the traditional family model. A will does not always protect a person’s loved ones but through a process called probate of the will, interested parties are given the opportunity to challenge its provisions. California enacted AB 205 (The Domestic Partner Rights and Responsibilities Act of 2003), effective January 1, 2005 to protect domestic partners from intestacy laws. Take note that AB 205 applies solely in California. Know your state’s laws on testate and intestate succession; do not presume that registration as domestic partners is sufficient to prove that you intend your partner to inherit from you. Each state is different so it is wise to know your rights and responsibilities in your state. There are state laws that do not recognize the rights and privileges for same-sex couples in many areas. An example is the benefit of taxation. Domestic Partners are not recognized on a Federal level. This means that taxes, including income, gift, estate and property taxes are treated differently from those under the traditional family model. Domestic Partners Revocable Living Trust is becoming more popular as a means of ensuring that a domestic partner is not disinherited. A domestic partner making a Revocable Living Trust can designate a Trustee to be the manager of one’s trust assets, and gives a partner control as to what happens to his estate in the event of death or incapacity, and how the estate will be distributed. It further allows a partner to name a guardian for his children in the event of incapacity, or death. A Revocable Living Trust is an instrument that can be created by both Registered and Non-Registered Partners. Most importantly, this instrument is private and confidential, and need not go through the Probate process. It is not uncommon to have a Healthcare Directive either. This allows a partner to designate an ‘attorney in fact’ to make medical decisions in time of incapacity. It also ensures that a domestic partner has physical access to his/her partner who is incapacitated or hospitalized. Take note that a healthcare Directive is not an instrument that allows you to designate a domestic partner as an heir.
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