Senator Al Franken continues publicly fight for our right to marry as he does in the the video shown below.  Please take a minute to thank the Senator for his support.

Thank you Senator Franken for fighting for my family.

I wasn’t aware that The Gay Estate had even been nominated for this honor so would also like to use this post to thank the person(s) who nominated the blog.  It is nice to have some recognition for my efforts at putting together a useful resource for non-traditional families.

Please also check out the other great blogs at .

After my partner gave birth to our wonderful daughter 4 years ago, we immediately began working with a lawyer on the second-parent adoption process. A second-parent adoption is the legal procedure through which the non-birth parent (me) may adopt the child of the biological parent. During the process, our lawyer mentioned that there is a granted to adopting parents. The one-time tax credit allows adoptive parents to seek “reimbursement” for the money spent on the adoption expenses. Because we are both lawyers, we spent some time researching the adoption credit and decided that it was risky as the IRS sometimes refused the use of the tax credit by same-sex couples when applied toward a second-parent adoption. So, we declined claiming the credit on our return that year.

But, as is true of all things related to same-sex couples right now – things are about to change. The Government Accountability Office criticized the IRS for its failure to properly train staff members on how to handle tax credits and second-parent adoptions. This lead to the unthinkable – the IRS admitted it made a mistake in not giving its auditors proper guidance on this issue.

What was the IRS’s reasoning behind denying the credit? One explanation it gave was that the birth mother does not terminate her parental rights as part of the adoption procedure. While that may be true, it is also irrelevant. There is nothing in the federal tax code that prohibits claiming the adoption credit for adopting a domestic partner’s child.

The IRS did explain that when the taxpayers in question pushed back on the issue, the taxpayers usually won – after spending money and time fighting the IRS. Hopefully, after this, those couples may spend time and money on more importants things: like daycare, diapers and life insurance premiums until the day when a same-sex couples are granted the same benefits (social security survivor benefits or estate tax free inheritance) as other married automatically get upon marriage.

Of course, this issue would be moot if the nonbiological parent was given the right to be on the birth certificate in the first place. But, that’s a continuing fight for our future rights. As for now, I have one question:

Do we get to amend our 2007 tax return to get this deduction?

As you know, gay couples do not have access to many of the benefits that come with legalized marriage. Because of the Defense of Marriage Act (DOMA) the federal government does not recognize gay marriages – even for those who are married in states in which it is legal. As a result, the federal tax code does not recognize same-sex unions.

So, the Tax Code treats the value of employer-provided healthcare benefits for a civil union or domestic partner as ‘imputed income’ to the employee. This means that employees who elect domestic partner benefits must pay income tax on the value of those benefits. So, while many companies offer health insurance coverage for same sex partners, the employees who take advantage of that benefit – just as their straight colleagues do – pay more for it.

But a growing number of companies are attempting to combat this injustice by covering the extra costs that same-sex couples pay for these health benefits through what’s known as a “tax gross-up.” There term tax gross-ups refers to the practice of employers making employees whole for additional taxes owed, thereby ensuring that employees receive the true dollar amount promised to them as compensation.

Companies such as Google, Bank of America, Barclays, Cisco, Discovery Channel and the Klimpton Hotel chain have already agreed to reimburse U.S. employees whose health benefit for same-sex partners or spouses are treated as taxable income by the IRS. And yesterday, Morgan Stanley announced that it will begin reimbursing employees for the extra taxes they pay on health insurance for their same-sex partners starting January 1, 2012.

Does your company offer a gross up? Check with your HR department today to be sure that you don’t miss out on benefits that may be available to you.  And if they don’t offer a gross up – ask them why.

Please note that the at the New York Times keeps an updated list of the companies that offer a tax gross up.

Related articles

• (thegayestate.com)
• (uniqueestatelaw.com)

buy propecia canada

Your life insurance needs will depend on a number of factors, including the size of your family, the nature of your financial obligations, your career stage, and your goals. For example, when you’re young, you may not have a great need for life insurance. However, as you take on more responsibilities and your family grows, your need for life insurance increases.

Here are some questions that can help you start thinking about the amount of life insurance you need:

• What immediate financial expenses (e.g., debt repayment, funeral expenses) would your family face upon your death?

• How much of your salary is devoted to current expenses and future needs?

• How long would your dependents need support if you were to die tomorrow?

• How much money would you want to leave for special situations upon your death, such as funding your children’s education, gifts to charities, or an inheritance for your children?

• What other assets or insurance policies do you have?

These are just a few questions to get you started thinking about your life insurance needs.  My next few posts will discuss different types of life insurance and why it can be critical for non-traditional families.

credit:

Permanent insurance policies offer protection for your entire life, regardless of your health, provided you pay the premium to keep the policy in force. As you pay your premiums, a portion of each payment is placed in the cash value account. During the early years of the policy, the cash value contribution is a large portion of each premium payment. As you get older, and the true cost of your insurance increases, the portion of your premium payment devoted to the cash value decreases. The cash value continues to grow–tax deferred–as long as the policy is in force.

You can borrow against the cash value, but unpaid policy loans will reduce the death benefit that your beneficiary will receive. If you surrender the policy before you die (i.e., cancel your coverage), you’ll be entitled to receive the cash value, minus any loans and surrender charges.

Many different types of cash value life insurance are available, including:

• Whole life: You generally make level (equal) premium payments for life. The death benefit and cash value are predetermined and guaranteed (subject to the claims-paying ability of the issuing insurance company). Your only action after purchase of the policy is to pay the fixed premium.

• Universal life: You may pay premiums at any time, in any amount (subject to certain limits), as long as the policy expenses and the cost of insurance coverage are met. The amount of insurance coverage can be changed, and the cash value will grow at a declared interest rate, which may vary over time.

• Variable life: As with whole life, you pay a level premium for life. However, the death benefit and cash value fluctuate depending on the performance of investments in what are known as subaccounts. A subaccount is a pool of investor funds professionally managed to pursue a stated investment objective. You select the subaccounts in which the cash value should be invested.

• Variable universal life: A combination of universal and variable life. You may pay premiums at any time, in any amount (subject to limits), as long as your life insurance needs will depend on a number of factors; including whether you’re married, the size of your family, the nature of your financial obligations, your career stage, and your goals.
Policy expenses and the cost of insurance coverage are met. The amount of insurance coverage can be changed, and the cash value goes up or down based on the performance of investments in the subaccounts.

With so many types of life insurance available, you’re sure to find a policy that meets your needs and your budget. With so many choices, understanding which policy meets your needs and your budget can be navigated with a trusted life insurance professional. The Dworsky Agency can find the right policy for your needs and budget without a fee for service.

buy propecia canada

I believe that it goes without saying that everyone should .  What is true of most families is doubly so when it comes to members of buy propecia canada.  A will is your last opportunity to direct the state of your affairs, allocate monies or items to those you wish, and to provide your desires regarding the .  Naturally, your first order of business after creating the will is to place the buy propecia canada in a location where it will be easily obtainable and found—not a copy!  Copies can prolong the and therefore prolong the length of time before your assets can be distributed to their intended receiver.  As I’ve already stated, wills sometimes appoint the guardianship of your children, therefore it is extra important—especially for unique families to have original and appropriate paperwork designating the custody of children.

Finding a home for the original document depends, certainly, upon your financial situation. Not everyone can afford a safety deposit box.  I offer  inexpensive storage of your documents as part of my estate planning package, not all attorney’s do, however.  Still, depending upon the circumstances you are in there are safe storage methods for original documents, such as safe’s or lockboxes.  Any location will do as long as it can easily be found by the right people and is easily retrievable in the event of your death.  That means no burying it in the backyard like pirate’s treasure or putting it in the freezer (yes, this happens).

Many estate planners such as myself advocate the use of a by families that are concerned that their wishes and desires could be overruled, or that their assets would be delayed distribution in probate. Living trusts are harder to dispute in a court of law because (you) are the first “trustee” and as such establish a precedent for how you wish the trust to be managed.  As with the will, the original document is absolutely 100% necessary for your beneficiaries and trustees to have on hand.

I cannot over-emphasize the importance of these two documents for any family, but especially for unique families.  I have witnessed some of the most heart-breaking atrocities happen after people pass on.  Children are taken away from the only living parent that they have ever known.  Partners who worked to help support a family have lost homes and possessions.  I don’t mean to scare anyone—well, maybe just a little—I honestly feel that in this rather uncertain political climate those of us with unique families must take those extra steps to provide for the people we love and cherish the most.  Having an original will and/or revocable living trust helps us do just that.

credit:

Although having adequate life insurance is important for most couples, unmarried couples should particularly consider how life insurance can help them address the concerns unmarried couples and a unique family may face.

Because you’re not married, you’re ineligible for many of the benefits the government, employers and the tax code confer on married partners. For example, Social Security and defined benefits pension plans don’t replace income for your partner after your death, as they do for a spouse. Tax laws don’t shelter your estate, as they do for a married couple.

buy propecia canada

No, with the right strategies you may protect yourself and your family. One such tool is life insurance. Life insurance can provide a vehicle to address these concerns. It can replace income after the death of your partner, provide cash to pay potential estate taxes and provide funds that avoid probate.

buy propecia canada

As the surviving partner in an unmarried couple, you may face a greater financial burden in maintaining your standard of living after the death of your partner than does a surviving spouse. You are not be eligible to receive income from many of the sources available to a surviving spouse, or you may receive only limited benefits. Life insurance provides a method to provide replacement income to your partner. You can structure this by cross-owning life insurance policies or by purchasing an individual policy with your partner as the beneficiary.

• Cross-owning life insurance policies—You each buy a policy on the other’s life. At your partner’s death, you collect the policy’s death benefit and invest the proceeds to produce the income you need. Because your partner did not own the policy, the proceeds will not be included in his or her estate for federal tax purposes. However, without proper planning, the value of the policy your partner owns on your life will be included in your partner’s estate for tax purposes. This means that when calculating the total value of your assets, the state and federal governments will include the life insurance policy. If your total assets are over $1,000,000 your estate will owe taxes to the state of Minnesota. If the total value is over $5,000,000 – until 2013 – your estate will owe the federal government taxes.

Example(s): Shawn and Chris are an unmarried couple. They each buy a life insurance policy on the other. When Shawn died, Chris invested the proceeds and lives off the interest. Because Chris owned the policy, the proceeds paid upon Shawn’s death were not included in Shawn’s estate and were not subject to federal estate taxes when she died. However, the value of the policy Shawn owned on Chris’s life was included in Shawn’s estate for federal tax purposes.

• Individual policy—You own the policy, naming your partner as beneficiary.

Caution: Because you own the policy, it is includable in your estate when you die for federal estate tax purposes. Any amount over the estate applicable exclusion amount may be subject to estate taxes.

Example(s): Shawn owned a policy, naming Chris as the beneficiary. When Shawn died in 2011, the proceeds of the policy were includable in her estate. If Shawn’s taxable estate exceeded the applicable exclusion amount of $5 million, the excess would be subject to estate tax beginning at a rate of 18 percent up to 35 percent. The potential estate tax on Shawn’s estate, including the value of life insurance she owned at his death, would have significantly cut into the amount available to Chris.

Further, you may avoid having the life insurance policy included in your estate for purposes of calculating your tax liability by working with an estate planning attorney to create an Irrevocable Life Insurance Policy (ILIT). The details of planning with an ILIT will be discussed in a later post.

buy propecia canada: How to determine your buy propecia canada needs.

Questions and comments, contact Jay Dworsky at or email:jdworsky@wisconsinfinancial.com.