A Little More about Same Sex Couple LCM Planning
Same-sex couples, whether married or not, require a unique Life Change Management planning approach. In the current legal environment, same-sex couples are not able to use a number of common estate planning techniques. For example, married same-sex spouses cannot take advantage of the marital deduction in order to reduce or eliminate estate and gift taxes. This means that each spouse in a same-sex couple must rely on his or her individual estate and gift tax credit, which is scheduled to be $1 million dollars in 2011, rather than the unlimited marital deduction that is available to opposite sex married couples who are US citizens. Each year, same-sex spouses can give a limited amount of assets to each other; once they exceed that limit, they will incur gift tax. In 2011, this annual limit will be equal to just $13,000.
Tax planning for same-sex couples can be more complex than planning for opposite sex married couples. The aggressive use of trusts, closely-held LLCs, and partnerships can provide many tax benefits for same-sex couples. Additionally, there are some tax techniques which are uniquely available to same-sex couples, and the attorneys at Hancock Legal will help you identify if these specialized solutions are appropriate for your needs.
In addition to tax planning, Life Change Management planning for same-sex couples must include other special concerns. Proper drafting can ensure that powers of attorney are respected, allowing same-sex spouses to care for each other in the event of incapacity. An effective plan can ensure that one spouse’s estate passes as planned, without interference from state laws which may not fit the intentions of a same-sex couple. For certain couples, privacy is a high priority; for these clients, we can draft plans that minimize public exposure as needed.
