More questions and answers from HRC national financial webchat – Part 5 of 5

Here is our final installment of answers to questions that our legal and financial experts were unable to post 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:

John: My husband and i were ‘married’ last month via a civil union in CT where he is a resident. For the near-term I will continue to reside in Texas. When I returned to work and enquired aboutmaking changes to my benefit plans. I found that my company has stated procedures for ‘domestic partnerships’ and not surprsingly for ‘marriages’ However, benefits for civil unions are not addressed. Can you advise whether this is a common situation? I work proudly for BP which is rather progressive in GLBT matters.

Lara Schwartz: John: In order to secure benefits, you will most likely need to submit an affidavit attesting to the fact that you and your spouse meet the criteria to be eligible for benefits. These criteria vary from company to company.

portertl: What opportunity do we have with a new administration to overturn the Defense of Marriage Act?

Lara Schwartz: Regarding the "Defense of Marriage Act" (DOMA): HRC sumitted questionnaires to all of the presidential candidates that ask their positions on issues ranging from employment non-discrimination, to equal benefits, to DOMA. Their answers are available at www.hrc.org/issues/marriage/5207.htm

Susz: We live in WV. Can we register as domestic parters in DC?

Chris Edelson: There is no residency requirement for entering into a domestic partnership in DC. However, there is no guarantee that the relationship will be legally recognized outside DC. If you’re thinking about registering as domestic partners in DC, it depends on what your reason is for doing so. For instance, if your company agrees to provide benefits based on your registering as domestic partners in DC, it may be worthwhile to do so.

John: Can you please describe some of the techniques that can be used to reduce the impact of federal taxes and state taxes in Maryland?

Brenda Jackson-Cooper: John, there are many ways to reduce the impact of federal estate taxes, but the options available to you will depend on your individual circumstances. Unless your total estate will be more than $2 million (in 2008) or more than $3.5 million (in 2009), federal estate taxes likely will not be a major concern for you. Unfortunately, Maryland’s estate tax exemption is set at $1 million, so you should undertake some tax planning if your estate is likely to exceed $1 million. Unfortunately, there is also a separate Maryland inheritance tax imposed on heirs who are not "relatives" (and same-sex partners do not qualify), and there is some planning that can be done — primarily planning designed to reduce the tax value of property that will be included in your estate.

Chris Edelson: To add on to Brenda’s response, I wanted to note that Maryland’s legislature recently passed a bill adding domestic partners to the list of people exempted from property transfer and recordation taxes when a person is added to a deed. A step toward equality in Maryland (a bill providing hospital visitation, medical decisionmaking and other rights to domestic partners also passed, though broader legislation, unfortunately, didn’t pass)

Royla: My partner and I live in Michigan and wonder if putting our home into a Living Trust would protect us if something should happens to one of us?

Brenda Jackson-Cooper: Royla, whether putting your home in a living trust will protect you should one of you die depends on the terms of that living trust. A living trust (also known as a revocable trust) is an important component of many individuals’ estate plans, and you should explore this option with an experienced attorney. However, in terms of ensuring that your partner will inherit the house should you die, your best option might be to hold the property as joint tenants with right of survivorship.

Mike: What is a domestic partnership agreement?

Chris Edelson: Leo asked earlier about entering into a domestic partner agreement—we assume this means registering as a domestic partner in a jurisdiction that recognizes such relationships. We would recommend (as Brenda noted) that you consult an attorney before registering as a domestic partner in order to understand all the legal implications, even though the relevant jurisdiction will provide you with a pre-prepared registration document.

Dixie: My partner bought the townhouse we’re living in almost 2 years ago; it is currently in her name only. Would it be best for us to add my name to the mortgage?

Brenda Jackson-Cooper: Dixie, your question actually has two parts: First, should both of you be on the deed to the house, i.e., should both of you be owners of the house? and Second, should both of you be on the mortgage, i.e., should both of you be liable to pay the mortgage. If both of you are on the deed and you are listed as joint tenants with right of survivorship, then you will automatically inherit the townhouse should your partner die. Whether you should be added to the mortgage depends upon a number of factors, one of which is whether you are in a better position than your partner to use the home interest mortgage deduction.

Sherice: Hello all, I wanted to know what the laws were in Ohio if you knew regarding adoption for same sex couples? We have been talking about starting a family and I was just wondering where to find more information that would protect us as well as help us in our journey. Thanks.

Chris Edelson: Sherice, Best wishes with regard to starting a family. Ohio law permits any qualified single individual adopt, without regard to sexual orientation or gender identity. Like many states, Ohio has no specific law prohibiting joint adoption by a same-sex couple. However, a 1998 court decision holds that a parent’s parental rights are terminated when a non-spousal partner adopts – that means that second parent adoption is not permitted in the state. I would recommend consulting an attorney to determine the best way to proceed. You can also check out HRC’s All Childen-All Families resources here http://www.hrc.org/issues/parenting/adoptions/8399.htm as well as this link http://www.hrc.org/issues/parenting/adoptions/8464.htm which provides information about adoption laws across the country.