Queercents

On Friday’s Marketplace Money, Host Tess Vigeland and Economics Editor Chris Farrell answer questions about how same-sex couples should handle assets and protect retirement money from over-taxation.

Farrell points the listener to, “a pretty good web site which I’ve only recently been spending some time on called Queercents.com.” Nice to hear we’re noted as a resource in the Getting Personal part of the program.

To catch it, be sure and click the “Listen to this Story” button for just that segment, rather than the “Listen to the Show” button. Hat tip to Dana at Mombian for catching this on NPR and letting me know.

And while we’re on the subject of money segments, if you like podcasts, Trent at The Simple Dollar, lists several money podcasts that he listens to (as well as a few other suggestions from his commenters) including: Planet Money, Marketplace and Marketplace Money. All worth a listen.

Image credit: Marketplace Money.

Gideon Alper publishes the Gay Couples Law Blog. The blog discusses new developments in same sex family law and estate planning. He lives in Atlanta, Georgia, and you can email him at gideon@galperlaw.com or follow him on twitter. These are his words…

When paying federal taxes, it can pay to be gay.

The IRS doesn’t recognize gay marriage because of the Defense of Marriage Act. Even if you’re officially married in one of the states that allows it, you still have to file as single for your federal taxes.

This unequal treatment, however, lets gay couples take advantage of their single-filer status by using tax-avoidance techniques that married straight couples, who have to file jointly, can’t use.

Today I’m going to focus on just one of these techniques: deferring the recognition of gain on the sale of your property. Read the rest of this entry »

My partner and I are about ten months away from getting married, so the hardcore budgeting process is underway. I tend to be the hater of spreadsheets and anything formal in our relationship, so this whole process is new to me; I’ve never planned such a big event before. Complicating things, is that I’ve never been to a gay wedding, and thus have no friends to ask questions to about expenses. Still, my partner and I have no choice but to move forward with the process, which has revealed somepro’s and con’s to me about being a same-sex couple planning our special day.

We’ll start with the con’s since I’m sure readers will want a happy ending: this is about a wedding, after all. The first big bummer for me was to find out from my parents that they weren’t necessarily going to help out, since this isn’t a “traditional” wedding. After a couple of conversations and just giving it some time, they came around. But still, there was no assumption on their part that their gay son taking another man’s hand in marriage requires their financial support. This wasn’t a question when my oldest sister got married. When that happened, my mother went into high gear, basically becoming thebridezilla that my sister didn’t have in her. So it has been a bit harder to get the parents involved in my celebration, even if it’s just to ask them suggestions on venues or guests to invite. Some people would consider this a blessing, and I’m not saying I want my parents planning my wedding, but there is definitely a more hand’s off approach when it comes to same-sex ceremonies. Read the rest of this entry »

At MorningstarAdvisor, Natalie Choate answered the question below about same-sex marriage and retirement plans. She practices law in Boston, specializing in estate planning for retirement benefits. Her book, Life and Death Planning for Retirement Benefits, is a leading resource for professionals in this field.

Question: “John,” age 54, and “Jim,” age 58, were married to each other under Massachusetts law. Their marriage is not recognized under federal law. Jim died, leaving a 401(k) plan and a money purchase pension plan, both maintained by his employer, Acme Widget Co. Jim had named John as designated beneficiary of the pension plan, but Jim never filed any beneficiary designation form for the 401(k) plan. The 401(k) plan provides that, if no beneficiary is named, the benefits shall be paid to the employee’s “surviving spouse, if any, otherwise to the employee’s estate.”

Elsewhere, the plan provides that the interpretation and administration of the plan shall be governed by Massachusetts law “to the extent not pre-empted by ERISA.” I assume this means the 401(k) benefits must be paid to Jim’s estate, since under federal laws such as ERISA same-sex marriage is not recognized. John is the sole beneficiary of the estate, under Jim’s will, which has been admitted to probate in Massachusetts. What are John’s rights with respect to the pension plan? The 401(k) plan?

Click over to MorningstarAdvisor to read Natalie’s thorough answer.

American Apparel has launched a new t-shirt. It comes in a range of colors, including teal and pink, and has the words “Legalize Gay” emblazoned in white across the upper torso area. Below this are the words, “Repeal Prop 8.” The company’s website includes this promo material:

“In the fall of 2008, Proposition 8 passed in California, striking down the legalization of same-sex marriage. Now the decision rests in the hands of California’s Supreme Court, with state lawmakers declaring the vote unconstitutional. Equal rights for all – repeal Prop 8.” The t-shirts are a variation on AA’s “Legalize L.A” t-shirts, part of the company’s attempt to market itself as an immigrants-rights-friendly entity. Clearly, this new version is an attempt to tap into the gay market.

A brief introduction to American Apparel: Founded in 1997 by Dov Charney, AA became famous for being the largest U.S. clothing manufacturer based entirely in this country. In other words, AA doesn’t outsource its manufacturing. But, it also has no unions and that fact alone should give pause to anyone who thinks this is a bastion of progressive business practices.

Its background has allowed AA to garner a niche market of mostly urban hipsters who’d like to look cool and aspire to at least the semblance of progressive politics. This t-shirt proves that gay marriage supporters aren’t afraid to exploit other struggles in an effort to legitimize themselves as the most marginalized. Read the rest of this entry »

Part 3-of-3

Now not to be a downer, but my series can’t end without at least mentioning estate planning and retirement, especially because so much can be done ahead of time.

The easiest step, according to Smith Barney’s John Fairbanks, is to make sure your company is fully funding your 401(k) and that you’re matching all those deposits. Losing out on that “easy money” is jeopardizing how much money you’ll have when you’re older. And don’t be intimidated to make an appointment with a financial planner, even just to ask questions. Many financial planners will book clients for one-to-two hour sessions just to assess where they’re at and start thinking about where they want to be.

Beyond that, same-sex couples can use the same retirement tools used by straight couples. There are no laws against saving money!

As for a starting point with estate planning, it’s never too early to draw up a will. If you’re considering that, you really should set up a trust in which you get to designate how your assets are managed once they’re allocated. Read the rest of this entry »

I can’t wait to walk down the aisle with my fiance. Since we’ve been together almost four years now, it’s only natural that we’d love to show the world we want to commit to each other for the rest of our lives. Unfortunately, since we’re gay, such an event would only be ceremonial: the federal government doesn’t recognize same-sex relationships and who’s knows when they will.

In the absence of a political miracle that sees gay U.S. Rep. Barney Frank (D-MA) succeed President Obama and legislate same-sex marriage, I figured I’d talk to some people and see what my options are.

What I found out – to be brief – is that the more patience I have, the more options I have. Just like old folks planning for their retirement, I too can make sure my fiance gets money from my 401(k) should I pass away. I can own an apartment 50/50 with a partner and even share the mortgage tax benefit. And if we have kids, we can both have legal rights guaranteeing our children can’t be taken away by the state or another family member – even if we separate.

The key? Document everything.

“If it’s not documented, then you can’t rely on any formal structure to help you or to prove your case,” says Debra Neiman, a certified financial planner in Massachusetts who helped start the PridePlanners Association, a group of financial planners serving the gay and lesbian community. “If it’s not on paper, there are no guarantees for anything.” Read the rest of this entry »

This week’s ruling on California’s Prop 8 was a tough one.  I’m happy to hear that the existing marriages were upheld and I’m thrilled to see our support base continuing to grow.  All the same, it was still a setback.

I started thinking about it and realized that where I am financially – my current debt and my much-gained knowledge on personal finance – is largely due to my involvement with this issue.  When you hear of people going into thousands of dollars of debt (or more), you might think that it was spent on designer clothes or expensive cars.  That’s what gay people spend money on, right?  But that’s just a stereotype.

For me, it was spent on spreading a message of hope.

With the passing of the first state marriage amendments in 2004, I wrote a song called Rise Above that offered a solution: reach out to those who don’t understand us instead of fighting back.  It will open their eyes to what our lives are like as well as doing the same to us.

I teamed up with a very talented filmmaker to produce a music video, complete with protesters, powerful imagery, and a wedding scene at the end.  It hit home and made quite the statement.  Not knowing how to promote it, I then worked with a very effective promotions company and record label that helped produce more remixes, video remixes, and then promote it on a national level to radio stations [Sirius, XM], DJs, dance clubs, fitness centers, and MTV’s Logo channel.  When we performed the song live at Pride festivals, we reenacted the video to keep the message alive. Read the rest of this entry »

The CA Supreme Court voted 6-1 to uphold Proposal 8 while maintaining the legality of mine and 18,000 other couples’ marriages. Talk about mixed feelings. This was the only thing I was going to be able to write about today…regardless of the outcome.

As I spoke with people at various parties over the long weekend here in Florida, I was amazed at how few were even aware that there was a decision pending from the CA Supreme Court. They were unequivocally supportive once they were told of the case and the ruling expected today. One person asked “are there financial ramifications to your marital status and lack of recognition in Florida?”. Um. Yeah. And by the way, the financial and legal protections are what all the fuss is about! We don’t just like marching and carrying signs. We’re not seeking approval or recognition from yours or anyone else’s God. Its about the rights.

Kate Kendal says in her blog post today…

We must now use that strength to reverse Prop 8 at the ballot. As we band together to realize that goal, the more than 18,000 married same-sex couples must be our ambassadors. They must help others regain the equality that now only some of us enjoy. We must also call on fair-minded Californians to stand with us, come to know our families, and undo the damage caused by Prop 8.

This has to be about more than California now. If there is one positive outcome to Proposal 8 and similar initiatives around the country is that they are galvanizing us on a national level. Let’s all be ambassadors in the pursuit of equality. My experiences over the weekend tell me we have some work to do in Florida. Better get to it.

Apparently, queers in Massachusetts missed Serena’s Queercents series about how to have a wedding on a budget. A recent survey [The Fiscal Impact of Marriage Equality in Massachusetts] looked at how much money was spent on nuptials by same-sex couples in the commonwealth over the last few years.

• Nearly half of same-sex married couples in Massachusetts have spent $5,000 or more on wedding-related expenses, including invitations, flowers, clothing, entertainment, catering, and other related expenses.
• Nearly one in ten same-sex couples spent over $20,000 on their wedding,
• The average same-sex couple spent approximately $7,400 on their wedding.

The study [download PDF here at Marriage Equality Works] concludes that marriages have had a positive economic effect on the Massachusetts economy with current estimates at $111 million. That’s a lot of smack for the privilege of being able to kiss the bride. If you’re getting married in Massachusetts or other states (Connecticut, Iowa, Vermont, and Maine) allowing same-sex couples to marry; then by all means enjoy the ceremony and celebration, but be sure and set a budget for the big day.

There is nothing worse than starting off wedded bliss with tens of thousands of dollars in debt.

Photo credit: stock.xchng.