Proud Parenting

LGBTQ Parents - Lesbian Moms & Gay Dads

Civil unions in New Jersey will not automatically convert to married status

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Now that same-sex marriage is legal in New Jersey, tax and estate plans must be reviewed and updated in order to avoid unintended consequences. Civil unions in NJ will not automatically convert to married status, and while same-sex couples who previously married in New York will now be recognized in New Jersey for state tax purposes, their estate planning documents may not take this into account.

“Now NY, NJ and Connecticut all allow same-sex marriage, which makes things easier for couples in the tri-state area who work in one state but live in another,” says Janis Cowhey McDonagh, East Coast Leader of Marcum’s LGBT Practice Group and a Trusts & Estates attorney. “But Trusts & Estates documents must be updated to consider the tax consequences, asset transference, child custody, power of attorney and other factors that will become effective under the new same-sex marriage law.”

Contact Julie Gross Gelfand, Julie.grossgelfand@marcumllp.com, office (631) 414- 4302, cell (516) 729-8067

Financial planning for gay and lesbian families

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The Sacramento Bee explores financial planning for gay couples who live in California [and elsewhere]. Financial experts say couples should be paying close attention to such issues as tax planning, health care, inheritance and child guardianship.

“The estate planning and legal issues are still going to be there. And they’re the same as with any married couple, only far more complicated for same-gender couples,” says estate planning attorney Penny Brown.

Under federal law, same-sex couples are not entitled to spousal Social Security and other benefits if one partner retires or dies. That’s why it’s imperative that couples do separate retirement planning.

The need for retirement planning is especially important in same-gender households where one partner works and one stays home with children. In some cases, it can be advantageous to have larger life insurance policies on the working spouse.

Due to differences between state and federal tax laws, same-sex couples have more complicated tax-filing requirements.