Butch Femme Planet - View Single Post - Please take legal steps to protect those you love.

citybutch · 09-04-2010, 01:21 PM

I posted in your old thread Keri... and I love that you are keeping this information alive for our community. It is so important. My heart bleeds for both you and your friend. These times are devastating even when there is appropriate planning. The lack of planning brings a whole other level of devastation that most people do not think about much less plan for. It is hard to think about when times are good... but it is in the good times we need to take the appropriate steps.

A couple notes of caution:

For those of us who DO own homes and want to put our beloveds on title, please be aware that this IRS considers this a gift and anything over $13,000 is taxable to the person who is gifting the property. Unless there is some kind of "consideration" (payment/purhcase/etc) then you may be opening yourself up to a serious tax consequnce for this type of transfer. Some tax advisors may give contradictory advice... but it is very clear in IRS code. Please be careful... wills and trusts can accomplish the same goal without the gifting tax consequences. ALSO, when you transfer title as a Joint Tenant to your beloved you both become subject to the creditors and liabilities of the Joint Tenant... something you may regret later on...

Also be aware that Joint Tenants is not always the best and cheapest way to hold title to any asset (home, bank account, etc). There may be tax and probate consequences to the asset at death, depending on what state you live in. Discussing your wishes with an Estate and Tax attorney who is very well versed in LGBT law is highly advised. Also make sure your financial planner is well versed on these subjects. It saves you on many headaches down the road.

There are many couples in our community who are in bi-national relationships ( I count myself as one of those). Whether you are in a same-sex, heterosexual, or otherwise defined relationship, if you are living in the US, you are exposed greatly to transfer taxes at death. You are exposed to Estate taxes after transferring a mere $133,000. If you own a home and a life insurance policy (heck, if you own just ONE of those) you are exposed to a very high transfer tax at death. Your financial planner and attorney should be well versed on these types of situations. There are trusts that exist to maximize the transfer of these assets at death.

September is Life Insurance Awareness Month. This month is a perfect time to make sure you have enough life insurance, update beneficiaries, and review your entire insurance portfolios to make sure what you want is what is going to happen should one of you pass away prematurely.

Anyhoo... there are so many other issues to consider as LGBT couples... but even heterosexual couples need to do their planning. If you die intestate (without a will or trust), the state you live in has a plan for you... and I can guarantee it is NOT what you want to have happen...

09-04-2010, 01:21 PM	#5
citybutch Member How Do You Identify?: Butch Preferred Pronoun?: I answer to "hey you" (either works for me!) Relationship Status: 19 years together- Very Married for 10 years Join Date: Aug 2010 Location: San Diego Posts: 557 My Photo Gallery Thanks: 835 Thanked 1,194 Times in 355 Posts Rep Power: 6434866	I posted in your old thread Keri... and I love that you are keeping this information alive for our community. It is so important. My heart bleeds for both you and your friend. These times are devastating even when there is appropriate planning. The lack of planning brings a whole other level of devastation that most people do not think about much less plan for. It is hard to think about when times are good... but it is in the good times we need to take the appropriate steps. A couple notes of caution: For those of us who DO own homes and want to put our beloveds on title, please be aware that this IRS considers this a gift and anything over $13,000 is taxable to the person who is gifting the property. Unless there is some kind of "consideration" (payment/purhcase/etc) then you may be opening yourself up to a serious tax consequnce for this type of transfer. Some tax advisors may give contradictory advice... but it is very clear in IRS code. Please be careful... wills and trusts can accomplish the same goal without the gifting tax consequences. ALSO, when you transfer title as a Joint Tenant to your beloved you both become subject to the creditors and liabilities of the Joint Tenant... something you may regret later on... Also be aware that Joint Tenants is not always the best and cheapest way to hold title to any asset (home, bank account, etc). There may be tax and probate consequences to the asset at death, depending on what state you live in. Discussing your wishes with an Estate and Tax attorney who is very well versed in LGBT law is highly advised. Also make sure your financial planner is well versed on these subjects. It saves you on many headaches down the road. There are many couples in our community who are in bi-national relationships ( I count myself as one of those). Whether you are in a same-sex, heterosexual, or otherwise defined relationship, if you are living in the US, you are exposed greatly to transfer taxes at death. You are exposed to Estate taxes after transferring a mere $133,000. If you own a home and a life insurance policy (heck, if you own just ONE of those) you are exposed to a very high transfer tax at death. Your financial planner and attorney should be well versed on these types of situations. There are trusts that exist to maximize the transfer of these assets at death. September is Life Insurance Awareness Month. This month is a perfect time to make sure you have enough life insurance, update beneficiaries, and review your entire insurance portfolios to make sure what you want is what is going to happen should one of you pass away prematurely. Anyhoo... there are so many other issues to consider as LGBT couples... but even heterosexual couples need to do their planning. If you die intestate (without a will or trust), the state you live in has a plan for you... and I can guarantee it is NOT what you want to have happen...