It’s Still Important to Plan Ahead

As appeared within the July 2009 issue of Q Vegas Magazine.

It’s Still Important to Plan Ahead
Think the new domestic partnership acti eliminates your need for an estate plan? Not on your life.

By Brooke Borg

Senate Bill 283 (the Nevada Domestic Partnership Act) was passed by a 28-14 vote of the Nevada Assembly and a vote of 14-7 of the Senate, overriding the veto of Gov. Jim Gibbons on May 31, 2009. What does this mean to you? In short, it means that as of Oct. 1, 2009, couples in Nevada will have the option to enter into a valid civil union, which, although not recognized as a marriage, will offer unmarried couples many of the same benefits of marriage.

The Act establishes a domestic partnership as a new type of civil contract recognized in Nevada. It defines “domestic partners” as persons who have registered a valid domestic partnership with the Secretary of State and have not terminated that domestic partnership.

Under the Act, domestic partners have the same rights, protections and benefits and are subject to the same responsibilities, obligations and duties under law as are granted to and imposed upon spouses. Similarly, a surviving domestic partner, following the death of the other partner, is treated the same as a widow or widower under State law.

Nevada will also begin to recognize domestic partnerships or other civil unions other than marriage, if such union was validly formed in another jurisdiction and such union meets the requirements of the Nevada Domestic Partnership Act.

Although this is exciting news for Nevadans, the need for an estate plan remains regardless of whether couples decide to register as domestic partners under this new law.

The importance of estate planning and the need for a valid estate plan pertains equally to married and unmarried couples as well as couples who choose to register as domestic partners and those who do not. The biggest estate planning myth that exists is the thought that if you do not own a lot of assets, you do not need an estate plan. This could not be further from the truth. When someone asks me “Who needs an estate plan?” I say “Anyone who cares what happens to his/her property at the time of death.”

An estate plan consists of several documents including a Trust, Will, Medical Power of Attorney, Power of Attorney for Finances, Burial Instructions, and Deed. Numerous horror stories arise out of the fact that people do not have estate planning documents in place when they pass away or their estate plans have not been updated after a change in family relationship (i.e. divorce, children, change of residence, etc.).

The following is a summary of the documents that can be prepared so you can be assured your assets are distributed according to your wishes upon your death.

Trust – There are various types of trusts that can be prepared depending on your domestic and financial situation. A Trustee is named in a trust to take possession of the assets at your death and distribute them in accordance with your trust.

Will – A will can be prepared alone or in conjunction with a trust. Having a will only will NOT avoid probate. This is another misconception. If you pass away, and your name alone is on any of your assets, more than likely, your estate will go through probate. This means the courts will become involved in distributing your assets at your death.

Medical Power of Attorney – This document sets forth your medical wishes and allows you to appoint someone to make medical decisions for you if you are unable to do so.

Power of Attorney for Finances – This document also allows you to appoint someone to make financial decisions for you including, but not limited to, signing deeds, gaining access to accounts, filing taxes, etc.

Burial Instructions – In this document, you would not only set forth your wishes regarding burial or cremation, but you would also designate someone to ensure your wishes are carried out.

Deed – A deed can be used as an estate planning tool to either transfer a property to someone at your death, to add someone onto your deed or to simply transfer your property to a trust or other business entity during your lifetime to ensure a smooth transition at your death.

If you already have an existing estate plan, it is highly recommended that you review your plan once a year. Anytime there is a change in your family relationship, you should also review your plan to ensure your wishes have not changed. If an amendment to your estate planning documents is desired, it can and should be prepared by an attorney.