GLBT Consumers See Financial Services Differently Than Others

Nest Building for Unmarrieds

Marriage comes with financial benefits -- a fact sometimes best recognized by couples who don't or can't get married.

Marriage allows couples tax-free transfers of property and gifts, as well as some inheritance rights without a will. Same-sex couples who can't officially wed, or heterosexual couples who are unwilling to, need to put extra protections into place when buying or sharing property.

Several states are now offering rights for unmarried couples, while others are taking them away. So local laws need to be carefully considered when choosing a home-ownership structure.   Read more ... references PridePlanners and Deb Neiman

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GLAD Flags Tax Issues for Married Same-Sex Couples

(Boston, MA) With the turn of the year, many people's thoughts turn to income taxes. For more than 4,200 same-sex couples who married in Massachusetts in 2004, filing this time around is presenting new challenges. Gay & Lesbian Advocates & Defenders (GLAD), the legal organization that won the landmark marriage suit, is drawing attention to the legal quandary married same-sex couples may find themselves in as they file their state and federal tax returns.

"Due to the federal government's discrimination against married same-sex couples, couples will be forced to file their federal income taxes as though they are single," said GLAD staff attorney Karen Loewy. "Nonetheless, when they file, couples should consider designating in some way that a marriage has occurred."

In order to walk couples through some of the complications, GLAD has issued two new publications: "Navigating Income Taxes for Married Same Sex Couples" and "Taxes on Employment Benefits for Same-Sex Spouses" They are both available on GLAD's web site, www.glad.org.

GLAD recommends either submitting a cover letter with the tax return, or putting an asterisk by the "x" in the "single" box, indicating somewhere on the form that the taxpayer was married to a person of the same sex, where, on what date, and that the designation of 'single' is for federal tax purposes only. Filing in this way will likely help avoid penalties for underpaying taxes, while simultaneously ensuring that neither spouse denies the validity of their marriage. It could also prevent others - such as lenders - from using the designation of 'single' on the federal tax return to argue that a person is not married when the issue arises in other contexts.

For purposes of filing state income tax returns in Massachusetts, there should be no question that married couples will be treated as married, and thus after filing their federal tax returns as single, they may need to recalculate the couple's joint income as married for purposes of the state return.

Other issues for couples to consider are the ways in which employment benefits provided to a same-sex spouse are taxed; and the implications of state and federal tax differences regarding gift and estate taxes.

GLAD is strongly advising couples to contact their own attorney or tax professional for assistance specific to their own situation. Individuals or their tax professionals should feel free to call GLAD's hotline (617-426-1350, M-F, 1:30-4:30 pm) for further assistance.

Carisa Cunningham
Public Affairs and Education Director
617-426-1350 x11
Gay & Lesbian Advocates & Defenders
www.glad.org

Gay & Lesbian Advocates & Defenders is New England's leading legal rights organization dedicated to ending discrimination based on sexual orientation, HIV status and gender identity and expression.

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Estate Planning for Non-Traditonal Couples
By Elaine G. DuCharme

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Serving Gay Clients
By Ruth Halcomb
Registered Rep.

Imagine this scenario. A same-sex couple has lived together for years, maybe decades, when one partner dies. The family that disinherited the deceased person years ago now descends on the household, making off with everything not held in the name of the surviving partner, who may now face financial hardship. Read more...

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Committed Gay and Lesbian Partners can Overcome Personal Finance Barriers
The Baby Boomer News

ARA) - So, it's the day of a baby boomer commitment ceremony. You're surrounded by your loved ones, the food is top of the line, the reception will be a blast -- all is well with the world. Except for one thing: you and your partner continue to avoid talking about the "M" word. "M" as in money. Read more...

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Sunday, March 07, 2004, Santa Fe New Mexican (www.santafenewmexican.com)

• Will — Your life partner could be denied your assets if you die intestate.
• Written agreements — Same-sex partners should have written agreements stipulating duties of mutual support, especially in situations where one partner is staying home to care for a child.
• Children — The partners should both legally adopt their children.
• Property — Partners should hold property as joint tenants so the surviving partner can inherit it without going through probate.
• Power of attorney — Each person should have a durable power of attorney so a partner can act in his or her behalf should he or she become incapacitated.
• Life insurance — Same-sex couples can make up for the lost Social Security and pension benefits through life insurance.
• Estate planning — “A same-sex couple’s best friend is a good estate-planning lawyer,” said David Walter, a Santa Fe divorce lawyer. “There are ways of tweaking the tax laws.” PridePlanners Association (www.prideplanners.com) specializes in estate planning for gays and lesbians.

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A generation fed with images of the ideal American family on television shows like Leave It to Beaver and Ozzie and Harriet has turned the ideal image of a married mother and father raising their biological children into somewhat of a cliché. Today, television represents a much more diverse slice of life, from unmarried and gay or lesbian couples, to single or divorced parents. As it becomes more acceptable to choose a road other than the one followed by Ward and June and the boys, it’s important that planners tune into the unique challenges of planning for non-traditional couples and families. Read more...

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