Same sex couples urged to seek advice
Same sex couples have been urged to seek estate planning and financial advice to ensure their partner is taken care of in the future, as legislation amongst states and territories varies.
Centric Wealth technical specialist Natasha Panagis has advised same sex couples who are in a serious long-term relationship to ensure their relationship is registered or de-facto, and for both partners to make a will and to create a binding financial agreement.
Panagis said that even without recognised gay marriage, there are areas where same sex couples in a registered or de facto relationship will have their partner recognised as their spouse under legislation for superannuation, taxation and social security purposes.
To avoid problems in the future, Panagis said it is important same sex couples obtain advice on achieving their estate planning goals and on how to minimise disputes after death.
“The broader definition of spouse means that same sex couples must ensure that adequate provision is made in the will for their beneficiaries such as their spouse or children,” she said.
Panagis recommended a will be drawn up with legal assistance, given the importance of the document and to ensure a person’s estate planning wishes are followed. Further, with no will in place, control over estate assets will be taken out of a person’s hands and determined by intestacy legislation, which varies across the country.
“All too frequently what may be fought over in a legal suit can get consumed in legal bills and everyone loses as the cost of the dispute is generally incurred by the estate, which erodes the amount for intended beneficiaries,” said Panagis.
Panagis said superannuation death benefits can be paid to a same sex partner if they are in a de facto or a registered relationship. In the past, the partner needed to establish financial dependency or show an interdependency relationship.
Same sex couples can further protect their assets through binding financial agreements, also known as prenuptial agreements, which can allow a couple to consider how assets will be divided if the relationship breaks down.
Panagis urges couples considering binding financial agreements regarding their situation to seek legal advice, adding that these agreements can be made before, during or after a relationship.
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