Specialized Tax and Financial Planning Solutions for LGBT Clients
Congratulations! You and your same-sex partner have been granted more than 1,100 rights that heterosexual couples have been entitled to for decades. So now what?
The tax and financial implications of the legalization of gay marriage and DOMA being struck down are monumental, as are the possibilities you may now take advantage of. One of the remaining challenges is that individual states still make their own laws; you can be considered married by the federal government, but single by the state in which you reside! Wondering which states recognize same-sex marriage?
This makes tax planning and wealth management complicated, and often requires the assistance of qualified accountants and financial planners to ensure you are leveraging the laws to your greatest advantage.
Below are some tax and financial planning tips to get you started.
Tax Planning Tips for LGBT Individuals and Couples
Revisit your tax planning as soon as possible. In the past, you filed separately and had to divide expenses, income, and capital gains/losses between your returns. Now that you can file jointly with the legalization of gay marriage and the changes to DOMA, should you? Will the ‘marriage penalty’ help or hurt you? How much money you each earn plays a big part in determining if your tax liability will increase or decrease if you decide to change your filing status.
Decide if amending past tax returns would generate a refund. Tax returns can be amended up to three years from the tax filing date. In the past, gift tax returns were required to account for financial gifts made to your same-sex spouse (even if the money is being used for ordinary expenses). Now, spouses may make unlimited gifts to each other.
Financial Planning Tips for LGBT Individuals and Couples
Update your financial and estate plans. Are you set up to achieve what’s most important to you? Married same-sex couples have new options. Review your trusts, wills, general powers of attorney and healthcare proxies to ensure you are both protected should one of you be injured, fall ill, or die.
Revisit beneficiary designations for your retirement accounts. Survivorship rules now apply to same-sex couples!
Review and rebalance your investment portfolio. Now that you can truly invest together, should your overall investment approach be different? Should you commingle accounts?
How Integrity Financial Partners Helps LGBT Clients to Plan
At Integrity Financial Partners, we work with LGBT individuals and couples to help them achieve long-term success. We take time to understand what our clients want out of life and the financial and tax plans we develop are always focused on helping them to achieve their goals.
Our process is simple and effective. We are committed to…
- Meeting with you and your partner throughout the year;
- Listening to what matters most to you both;
- Evaluating past tax returns and current financial plans to identify opportunities and reduce costs;
- Developing tax and investment management plans that will allow you to meet your goals and objectives;
- Monitoring your plans and communicating with you throughout the year.
Both partners work extensively with the LGBT community and other high-net worth individuals and executives in New York City and the tri-state area. We are also considered a gay friendly tax preparation and financial planning firm as a member of the Pride Planners Association.