Additional answers to HRC national financial webchat questions! Part 1

We’re in the last two days of our "7 Days to a Better Financial You" campaign – and Tax Day is tomorrow! We hope the information provided in last week’s posts have been informative in helping you think about your financial future and plan for your and your family’s long-term financial success.

For the remainder of our "7 Days to a Better Financial You" campaign we’ll be posting answers to many of the questions that our legal and financial experts were unable to answer during last Thursday’s live webchat. Questions on a wide range of financial issues affecting GLBT individuals and couples were addressed by Joe Kapp, Advocate contributor and co-owner of a Washington, DC financial planning practice that caters largely to the GLBT community; Brenda Jackson-Cooper, an associate at the Washington, DC law firm Arnold & Porter in the tax and estates practice group; and HRC’s state legislative director Chris Edelson and legal director Lara Schwartz.

The transcript of the live portion of the online discussion is available at www.hrc.orc/chat.

Here are three answers to questions posed to our experts:

Anne:  How can you do financial planning with your partner if he/she is still very closeted?

Joe Kapp: We have encountered this issue in our planning practice.  Being closeted should not stand in the way of proper planning.  In fact, in many ways if your partner’s family does not know about his sexual orientation, it creates an additional layer of complication because; you will not be sure whether they are likely to become hostile in the event your parent dies.  As a result, it is even more important that you and your partner do proper planning. 

1. Determine whether your partner is comfortable approaching a gay advisor or gay attorney, both of whom should keep all your discussions confidential.

2. Work to make sure that your partner understands the severity and the ramifications of not planning. It will very much affect you if she/he is no longer around. Show him or her the article we published for the Journal of Financial planning to help explain the vast number of issues that gay and lesbian couples face (http://www.hrcbackstory.org/2008/04/your-money-your.html).

3. In the absence of a willingness to plan appropriately, you need to be fully aware of the financial and legal ramifications of the loss of your partner due to death or hostile family.

David: I have all my bank accounts set up as POD to my partner. I made out a will and had the signatures witnessed. Is there anything else I need to do to make sure he gets my money? We are assuming that we will not have access to each others pensions or social security.

Brenda Jackson-Cooper: It is great that you have taken care of your bank accounts and prepared your Will.  If you have 401(k) accounts and/or IRAs, you need to be sure to fill out beneficiary designation form for each such account and name your partner as the beneficiary.  The same is true for any life insurance policies you might own.  Be sure to fill out the beneficiary designation form naming your partner as the beneficiary of the life insurance proceeds. 

Jayne: My partner and I are expecting our first child in August: I am five months pregnant through use of an anonymous donor. What types of steps can I take NOW to be sure she has parental rights in the event something happens to me before we can proceed with second parent adoption?

Joe Kapp: When bringing a child into a family, documents ought to be prepared before the child arrives and then updated once the child comes home. 

Chris Edelson: It may be possible to obtain a parentage decree from a court declaring that both you and your partner are the child’s parents.  Obtaining a parentage decree may allow you to put both your name and your partner’s name on the child’s birth certificate.  Also, obtaining a parentage decree can be less expensive and less time-consuming than a second-parent adoption as the parentage decree does not require a home study.  However, not all courts will grant a parentage decree prior to birth.

I strongly recommend that you consult a family law attorney in your area to discuss your options.

Brenda Jackson-Cooper: It is essential that you prepare a Last Will and Testament appointing your partner as guardian in the event you die while your child is still a minor.  Some states also have what are known as “standby guardianship” laws.  These laws allow a parent to appoint another person to serve as guardian of a child in the event the parent has not died but becomes too ill to take care of the child herself.  It is important to take these steps even if the state in which you live allows second parent adoptions.