More questions and answers from HRC national financial webchat – Part 4

We’re continuing to post 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 additional questions that were answered by our experts:

Mary: I am presently in the process of completing Suze Orman’s Will and Trust Kit.  Can you please tell me if this kit will be enough to ensure that my partner of 8 years is protected in the state of Illinois?  Is there anything I should be aware of?

Joe Kapp: I am not familiar with the details of Suze Orman’s Will and Trust Kit.  That not withstanding, given the intricacies of our relationships, frequent changes in laws and legislation affecting gay and lesbian couples and the fact that each jurisdiction differs, it is generally NOT recommended to use “do-it-yourself” kits.  They often do not address the particular needs of the LGBT community.  The templates that they use usually don’t conform to our particular needs.

Susan: How do I find an attorney and financial planner in my area (Baltimore, MD) that is aware of specific concerns of GLBT people and can review my legal documents?

Joe Kapp: In trying to find LGBT advisors, HRC can help you locate an attorney and financial/estate planner in your area if you will send an email to estateplanning@hrc.org.  Another place you can turn is to your local gay and lesbian chamber of commerce. The National Gay and Lesbian Chamber of Commerce (NGLCC) maintains a list of chambers around the country.  This is a good place to start.  I know that as president of DC’s Chamber we have a number of financial advisors (myself included) and attorneys that are active and keep up to date on the issues affecting LGBT issues.  Also, ask friends for recommendations about their experience.  When you meet with them, bring along a copy of our article from the Journal of Financial planning to ensure that they are aware of the issues (http://www.hrcbackstory.org/2008/04/your-money-your.html).

From Willard: I am a retired federal employee and would like to emphasize the importance of a senate bill 2521 that was introduced by Joe Lieberman that will give equal benefits to domestic partners of federal employees.  This disparity that allows the second, third or other spouses to receive benefits while declining those benefits to domestic partners (in my case, the same partner for 37 years) needs to be eliminated.  Will you please include discussion on this topic?  Thank you for your consideration.

Lara Schwartz: Thank you for drawing attention to the Domestic Partnership Benefits and Obligations Act, which HRC is working to pass.  “DPBO” is about equal pay for equal work—it will ensure that all federal civilian employees have access to the same health, pension, family leave, relocation, and other benefits.  It is unfair policy and bad business for the federal government to exclude same-sex couples from these benefits. What’s more, over 53% of the Fortune 500 companies cover domestic partners. Without these benefits, the federal government cannot compete for the top talent, and too many people in public service will be treated unfairly. 

For more information about DPBO, visit www.hrc.org/familymatters

Kaufman: Have been with a partner 31 years and have a Power of Attorney for both Medical and financial, also the house is owned with rights of survivorship.  How do we handle the cars that are in each individual name?

Brenda Jackson-Cooper:  You have two options:  (i) title the cars in both of your names, joint tenants with right of survivorship or (ii) prepare a Will in which you bequeath all of your “tangible personal property” to your partner.  A car is considered “tangible personal property.”  Even if you title the cars in both of your names as joint tenants with right of survivorship, you should still have a Will directing that all of your tangible personal property passes to your partner, because “tangible personal property” includes household furnishings, the china, the art collection — even the family pet!  In the absence of a Will bequeathing these assets to your partner, your partner will not inherit these items (unless you reside in a jurisdiction that recognizes the inheritance rights of domestic partners).

Peggy: I am hoping that HRC has filed something with the Supreme Court in CA regarding the fact that RDP in CA is sadly lacking in a number of ways compared to being married.  In the last month I have had to pay Fed Tax from two 1099 Misc’s totaling $5755 due to imputed income from my employer for my RDP.  I have also been looking into Annuities and have been told that an RDP treated the same as a Married couple has to be addressed one company at a time to see how each company handles this.  We had to fill out 3 Federal returns because a Married/RDP return must be filled out for CA using a Married Fed return as a basis.  The Pro Forma Fed Return had us paying considerably less taxes than we actually paid in our two individual Fed returns.  Pretty sad when almost every poll I read finds it pretty close to a 50/50 split for being for or against Gay Marriage.

Chris Edelson:  The Human Rights Campaign and the Human Rights Campaign Foundation have signed on to an amicus, or friend of the court, brief in the in re Marriage consolidated cases seeking marriage equality under state law for same-sex couples in California.  Oral argument has been held and a decision is scheduled to be handed down by early June 2008.  Sorry to hear about your situation.  You’re right that there is growing support for marriage equality—in fact, last year the California Legislature passed a marriage equality bill for the second time since 2005.  (It was vetoed both times by Governor Schwarzenegger).

We are, of course, following the marriage case closely and will have a lot more to say when the court issues its decision.