printCATHERINE D. A. WATSON, Chair of the Estates Team, Quoted in the Financial Post
Same-sex couples face unique issues
Estate planning
Eric Lam, Financial Post
Published: Tuesday, October 27, 2009
Things have changed in the world of financial planning in Canada since 1999, when it joined a handful of countries that recognized same-sex unions and, later, marriages.
"If we had this conversation 10 years ago, I'd have had a hundred things to tell you," Laurie Stephenson, a certified financial planner with Stephenson Daigle Financial, said on the phone from Halifax. "It used to be people would slink into our offices or ask us to meet them in their homes. They were so secretive."
The landmark Supreme Court of Canada ruling in 1999 that recognized common-law rights for samesex couples and the later federal legislation legalizing same-sex marriage in 2005 have made it much easier for same-sex couples to protect their finances and assets.
It's all become almost "boringly mainstream," with Ms. Stephenson's same-sex-couple clients these days. They have the same concerns, questions and financial goals as other couples: how to save for a car, a house, a wedding, retirement or what to do about the economy, she said.
However, there are still some unique financial issues for same-sex couples to think about.
In Nova Scotia, for example, partners in a common-law relationship -- straight or same-sex -- do not necessarily have all the same protections as married couples.
If one of the partners dies without a will or power of attorney in place, there is no recognition of the relationship and the other partner is left without any claim on his or her spouse's assets.
"You could be a 40-year common-law couple and [if ] one of you dies, the other gets nothing," Catherine Watson, a lawyer specializing in estate planning with Boyne Clarke Barristers, of Halifax said in an interview. "Most people don't realize the [consequence] is that bad."
Couples must either name their partners as beneficiaries in a will or file for a civil partnership to get status. Otherwise, the government will appoint an administrator to the estate based on biological connection. This is of particular concern to the same-sex community as there are a disproportionate number of samesex couples who will choose never to marry, she said.
Other provinces with similar conditions are Prince Edward Island, Newfoundland and Quebec, Ms. Watson said.
Patricia Lovett-Reid, a senior vice-president and CFP with TD Waterhouse Canada, warned that even having a will might not be enough, as the deceased partner's family may not have accepted the relationship and choose to contest the partner's claims.
"I've seen it happen too many times -- the family doesn't accept the partner," she said. A good strategy is to have a lawyer confirm testamentary capacity for both partners. The lawyer serves almost as a witness, confirming the will's validity.
The situation has also put pressure on some same-sex couples to marry.
"I've talked to clients who don't care one way or the other whether they marry, but when we talk about the protections available with marriage they decide to go ahead with it," Ms. Watson said.
Same-sex couples must also take into account the costs involved in adoption or in vitro fertilization.
Overall, financial planning for same-sex couples now works much like it does for straight couples, but the industry must still deal with a lack of awareness.
"Don't think you're exempt from financial planning if you're gay," Ms. Stephenson said.
erlam@nationalpost.com
Posted with the permission of Eric Lam, Financial Post
Same-sex couples face unique issues
Estate planning
Eric Lam, Financial Post
Published: Tuesday, October 27, 2009
Things have changed in the world of financial planning in Canada since 1999, when it joined a handful of countries that recognized same-sex unions and, later, marriages.
"If we had this conversation 10 years ago, I'd have had a hundred things to tell you," Laurie Stephenson, a certified financial planner with Stephenson Daigle Financial, said on the phone from Halifax. "It used to be people would slink into our offices or ask us to meet them in their homes. They were so secretive."
The landmark Supreme Court of Canada ruling in 1999 that recognized common-law rights for samesex couples and the later federal legislation legalizing same-sex marriage in 2005 have made it much easier for same-sex couples to protect their finances and assets.
It's all become almost "boringly mainstream," with Ms. Stephenson's same-sex-couple clients these days. They have the same concerns, questions and financial goals as other couples: how to save for a car, a house, a wedding, retirement or what to do about the economy, she said.
However, there are still some unique financial issues for same-sex couples to think about.
In Nova Scotia, for example, partners in a common-law relationship -- straight or same-sex -- do not necessarily have all the same protections as married couples.
If one of the partners dies without a will or power of attorney in place, there is no recognition of the relationship and the other partner is left without any claim on his or her spouse's assets.
"You could be a 40-year common-law couple and [if ] one of you dies, the other gets nothing," Catherine Watson, a lawyer specializing in estate planning with Boyne Clarke Barristers, of Halifax said in an interview. "Most people don't realize the [consequence] is that bad."
Couples must either name their partners as beneficiaries in a will or file for a civil partnership to get status. Otherwise, the government will appoint an administrator to the estate based on biological connection. This is of particular concern to the same-sex community as there are a disproportionate number of samesex couples who will choose never to marry, she said.
Other provinces with similar conditions are Prince Edward Island, Newfoundland and Quebec, Ms. Watson said.
Patricia Lovett-Reid, a senior vice-president and CFP with TD Waterhouse Canada, warned that even having a will might not be enough, as the deceased partner's family may not have accepted the relationship and choose to contest the partner's claims.
"I've seen it happen too many times -- the family doesn't accept the partner," she said. A good strategy is to have a lawyer confirm testamentary capacity for both partners. The lawyer serves almost as a witness, confirming the will's validity.
The situation has also put pressure on some same-sex couples to marry.
"I've talked to clients who don't care one way or the other whether they marry, but when we talk about the protections available with marriage they decide to go ahead with it," Ms. Watson said.
Same-sex couples must also take into account the costs involved in adoption or in vitro fertilization.
Overall, financial planning for same-sex couples now works much like it does for straight couples, but the industry must still deal with a lack of awareness.
"Don't think you're exempt from financial planning if you're gay," Ms. Stephenson said.
erlam@nationalpost.com
Posted with the permission of Eric Lam, Financial Post