DOMA & Your Taxes - PNC expert Jennifer Immel provides candid advice

March 19, 2012 - PRLog -- Despite the good news coming out of Annapolis this month, same-sex couples will remain separate and unequal compared to opposite-sex couples, at least in the eyes of the federal government.

"In most states that grant same sex marriage rights, those same sex couples are offered virtually the same rights, obligations and responsibilities as their peers who are opposite sex couples," explained PNC Senior Wealth Planner Jennifer Immel. It's the federal laws that present the greatest challenges for same-sex couples as a result of DOMA, the Defense of Marriage Act, which defines marriage as being between a man and a woman.

"Opposite sex couples are treated as a single person: they can transfer money back and forth, they collect inheritance upon the other's death, and as a tax unit they can file income as a single unit, including share deductions," said Immel.

But same-sex couples are denied all of these benefits—and about 1,100 other statutory provisions—regardless of whether or not they live in a marriage equality state.

There are ways for you and your partner to protect yourselves and your assets:

1 — Regardless of your wealth, make sure all of your, and your partner's, documents are in order (e.g., will, receivable trust, power of attorney, health care directive).

2 — It's very important to keep your financial advisors informed of your relationship; they cannot protect your interests if they don't know them.

3 — Inform your financial advisor about plans to move out of state; your status can change once you cross state lines (e.g., marriage benefits, custody, inheritance, ability to dissolve marriage).

"Things are happening very quickly, and happening quickly across the board," said Immel. "It's exciting, but like walking through a desert of shifting sands, you need to keep a compass."

Questions? Talk to a professional.
Call Clay Henry, PNC Managing Director of Asset Management, at 410.237.5536.

Published in Gay Life Volume 34, Number 5 (Here's a link to the article and the publication's website).
http://www.baltimoregaylife.com/features/item/508-doma-an...