Commentary
2011 may be a very taxing year for same-sex couples, regardless of marital status
Onerous federal estate tax set to return
Congratulations, you assembled your friends and family and got married in Washington DC. Now it is recognized in both DC and Maryland. It’s the moment of a lifetime and a moment you’ve been waiting for.
Well, guess what? The IRS doesn’t care! That’s right, to the IRS, you are still strangers according the law. If your estate and retirement plans include leaving your partner your estate, next year may well prove to be a expensive year to die regardless of marital status!
Thanks to the Defense of Marriage Act, even though same-sex couples can now get married in Washington DC and have it recognized in the state of Maryland, the IRS still does not recognize the validity of that marriage. As a result, unlike heterosexual married couples who can pass an unlimited amount of assets between spouses at death, same-sex couples can be hit with the Federal estate tax, regardless of marriage status. Understanding how the Federal estate tax rules work and following a couple of action items could significantly reduce or entirely eliminate this tax.
The Federal estate tax is due when a person leaves assets above a certain dollar amount to someone other than a heterosexual married spouse. Straight married couples get a free pass called the unlimited martial deduction. In 2010 only, there is an unlimited exemption. But, you may owe capital gains tax on any appreciation. Each estate can exempt $1.3 million of gains from the carryover basis rule. Another $3 million exemption applies to assets inherited from a spouse.
In 2011, however, unless Congress acts, Federal estate tax rules change. As a result, same-sex couples could witness a significant tax bite if a partner dies next year. Straight married couples won’t have this problem since the IRS continues to give them a free pass with the unlimited martial deduction.
Next year, at the death of a partner, the value of any estate above $1 million will be taxed at 55%.
Think you don’t have a $1 million, well think again!
How the IRS calculates your gross estate for Federal estate tax purposes probably includes some items you likely wouldn’t count. It also means that many more gay and lesbian couples will feel this tax bite, if you don’t plan properly. The largest impact will likely be felt by older gay and lesbian couples, who are nearing retirement and have built up retirement assets over the course of their life. This becomes an issue as they rely on their partner’s asset to maintain financial independence.
How the IRS calculates the Federal Estate Tax:
To determine whether an estate is hit by the Federal estate tax, it is important to understand how the IRS calculates the Federal Estate Tax. For the purposes of the estate tax calculation, the IRS includes almost everything. Yep, add up all the assets, including personal assets, cars, collections, art, etc. The biggest ticket items usually include the following:
• savings and checking accounts, CDs;
• brokerage or investment accounts;
• retirements accounts like IRAs, Roth IRAs, 401(k)s, 403(b)s or TSP plan assets;
• personal property such as boats, paintings, collections, etc.;
• real estate titled in the decedent’s own name or the percentage portion that is titled • as tenants in common;
• the gross value of life insurance proceeds in the decedent’s own name;
• property that is titled as joint tenants with rights of survivorship (which allows the property to pass automatically to a partner at death, the way many gay and lesbian couples have their homes titled).
The last two bullets are important and frequently overlooked. Most people know that life insurance passes INCOME tax free, but if it is owned by the person who dies, the IRS includes the entire amount of the life insurance proceeds in the total amount of the ESTATE tax calculation. As a result, if you own a $500,000 life insurance policy in your name and have your partner as the beneficiary, your estate increases by $500,000
The IRS also includes the gross value, less any mortgages on property titled as Joint Tenants with Rights of Survivorship (JWROS) in the estate of the first person to die UNLESS payments or contributions can be proven.
Let’s take a look at a hypothetical example: Mark age 55 and Max age 60 are looking to retire in 5 years. They own a $550,000 home with a $50,000 mortgage titled as joint tenants with rights of survivorship. Max has been paying the mortgage, while Mark has been paying all the living expenses. Max also owns two life insurance policies: one from work which is worth $250,000 and a personal policy worth also $250,000. His 401(k) has taken a hit with the market but is still valued at $425,000 and he has a rollover IRA with $25,000. He also has a brokerage account worth $25,000 and a $25,000 CD.
While drinking a martini in Rehoboth, Max accidently chokes on an olive and dies. Unless Congress acts, here’s how the IRS will calculate the estate in 2010 versus 2011.
Note that because Max made all the contributions, the IRS adds the home to his estate, even though it is titled jointly. Mark could not show that he contributed to the mortgage payments. He was paying for the utilities, car payments, etc.
In 2011, Mark has to pay $275,000 in Federal estate taxes. Again, straight married couples pay zilch, zero, nada! Mark still walks away with a cool $1,225,000, right?
Well, not exactly. Because Mark will continue to live in the home that part of the estate is not liquid or immediately accessible. If the value of the house is removed, the actual cash amount that he receives from the estate is reduced to $725,000 or ($1,500,000 less $500,000 (the value of the home) less $275,000 (the estate taxes)).
Mark, like any heterosexual married beneficiary, is going to have to pay legal/probate fees. In addition, Mark will also have to pay Federal income taxes on the 401(k) and IRA money when he starts taking distribution. In the worse case scenario, if he pulled out all those funds in a lump sum, the tax could be taxed up to 35%.
The question then becomes will Mark, who has a life expectancy of an additional 24.37 years according to Social Security table, have enough assets to live at least that long without running out of money.
The estate tax is often considered a voluntary tax because with proper advanced planning, Max and Mark could have significantly reduced their overall estate tax burden. By re-structuring some of their assets today, they could reduce their estate size to potentially pay zero Federal estate taxes. That’s right, zero, zilch, nada!
The question then becomes, where is a good place to spend the $275,000 that would otherwise have gone to estate taxes, a problem we would all like to have!
What to do:
• Calculate the gross estate including all your assets. Be sure to calculate it the way the IRS does.
• Review your estate planning documents and beneficiary designations.
• Review the titling of all your assets to determine in to whose estate the asset falls.
• Review the ownership of your life insurance including both your personal and work. The current ownership structure of the life insurance could simply be increasing the amount you will be paying to the IRS. By retitling the ownership of the life insurance to either a trust or putting it in your partner’s name you may be able to remove it from your estate. Use caution, however, because retitling assets incorrectly could trigger a costly current gift tax if not done correctly.
• Review how your home is titled and who is making payments on the mortgage. It is common for one partner to pay the mortgage while the other pays for other expenses. This could cause an estate trap because it may be difficult to substantiate payments into a jointly owned home. Retitling your home incorrectly could trigger a costly current gift tax of 55% if not done correctly. In some jurisdictions, even if it is done correctly, it may trigger a local transfer tax.
• Consult a professional to determine what is the best way to structure your estate and minimize your estate taxes.
The information provided is for general information. It is not intended to be all-inclusive on estate taxes.
Nicholas Burkholder and Joseph Kapp ([email protected]) are registered representatives and investment advisor representatives with Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor, offering insurance through Lincoln affiliates and other fine companies. This information should not be construed as legal or tax advice. You may want to consult a legal or tax advisor regarding this material as it relates to your personal circumstances. The content of this material was provided to you by Lincoln Financial Advisors for its representatives and their clients. CRN201004-2040969
Today, on World AIDS Day, we honor the resilience, courage, and dignity of people living with HIV everywhere especially refugees, asylum seekers, and queer displaced communities across East Africa and the world.
For many, living with HIV is not just a health journey it is a journey of navigating stigma, borders, laws, discrimination, and survival.
Yet even in the face of displacement, uncertainty, and exclusion, queer people living with HIV continue to rise, thrive, advocate, and build community against all odds.
To every displaced person living with HIV:
• Your strength inspires us.
• Your story matters.
• You are worthy of safety, compassion, and the full right to health.
• You deserve a world where borders do not determine access to treatment, where identity does not determine dignity, and where your existence is celebrated not criminalized.
Let today be a reminder that:
• HIV is not a crime.
• Queer identity is not a crime.
• Seeking safety is not a crime.
• Stigma has no place in our communities.
• Access to treatment, care, and protection is a human right.
As we reflect, we must recommit ourselves to building systems that protect not punish displaced queer people living with HIV. We must amplify their voices, invest in inclusive healthcare, and fight the inequalities that fuel vulnerability.
Hope is stronger when we build it together.
Let’s continue to uplift, empower, and walk alongside those whose journeys are too often unheard.
Today we remember.
Today we stand together.
Today we renew hope.
Abraham Junior lives in the Gorom Refugee Settlement in South Sudan.
Commentary
Perfection is a lie and vulnerability is the new strength
Rebuilding life and business after profound struggles
I grew up an overweight, gay Black boy in West Baltimore, so I know what it feels like not to fit into a world that was not really made for you. When I was 18, my mother passed from congestive heart failure, and fitness became a sanctuary for my mental health rather than just a place to build my body. That is the line I open most speeches with when people ask who I am and why I started SWEAT DC.
The truth is that little boy never really left me.
Even now, at 42 years old, standing 6 feet 3 inches and 225 pounds as a fitness business owner, I still carry the fears, judgments, and insecurities of that broken kid. Many of us do. We grow into new seasons of life, but the messages we absorbed when we were young linger and shape the stories we tell ourselves. My lack of confidence growing up pushed me to chase perfection as I aged. So, of course, I ended up in Washington, D.C., which I lovingly call the most perfection obsessed city in the world.
Chances are that if you are reading this, you feel some of that too.
D.C. is a place where your resume walks through the door before you do, where degrees, salaries, and the perfect body feel like unspoken expectations. In the age of social media, the pressure is even louder. We are all scrolling through each other’s highlight reels, comparing our behind the scenes to someone else’s curated moment. And I am not above it. I have posted the perfect photo with the inspirational “God did it again” caption when I am feeling great and then gone completely quiet when life feels heavy. I am guilty of loving being the strong friend while hating to admit that sometimes I am the friend who needs support.
We are all caught in a system that teaches us perfection or nothing at all. But what I know for sure now is this: Perfection is a lie and vulnerability is the new strength.
When I first stepped into leadership, trying to be the perfect CEO, I found Brené Brown’s book, “Daring Greatly” and immediately grabbed onto the idea that vulnerability is strength. I wanted to create a community at SWEAT where people felt safe enough to be real. Staff, members, partners, everyone. “Welcome Home” became our motto for a reason. Our mission is to create a world where everyone feels confident in their skin.
But in my effort to build that world for others, I forgot to build it for myself.
Since launching SWEAT as a pop up fundraiser in 2015, opening our first brick and mortar in 2017, surviving COVID, reemerging and scaling, and now preparing to open our fifth location in Shaw in February 2026, life has been full. Along the way, I went from having a tight trainer six pack to gaining nearly 50 pounds as a stressed out entrepreneur. I lost my father. I underwent hip replacement surgery. I left a relationship that looked fine on paper but was not right. I took on extra jobs to keep the business alive. I battled alcoholism. I faced depression and loneliness. There are more stories than I can fit in one piece.
But the hardest battle was the one in my head. I judged myself for not having the body I once had. I asked myself how I could lead a fitness company if I was not in perfect shape. I asked myself how I could be a gay man in this city and not look the way I used to.
Then came the healing.
A fraternity brother said to me on the phone, “G, you have to forgive yourself.” It stopped me in my tracks. I had never considered forgiving myself. I only knew how to push harder, chase more, and hide the cracks. When we hung up, I cried. That moment opened something in me. I realized I had not neglected my body. I had held my life and my business together the best way I knew how through unimaginable seasons.
I stopped shaming myself for not looking like my past. I started honoring the new ways I had proven I was strong.
So here is what I want to offer anyone who is in that dark space now. Give yourself the same grace you give everyone else. Love yourself through every phase, not just the shiny ones. Recognize growth even when growth simply means you are still here.
When I created SWEAT, I hoped to build a home where people felt worthy just as they are, mostly because I needed that home too. My mission now is to carry that message beyond our walls and into the city I love. To build a STRONGER DC.
Because strength is not perfection. Strength is learning to love an imperfect you.
With love and gratitude, Coach G.
Gerard Burley, also known as Coach G, is a D.C.-based fitness entrepreneur.
Commentary
Elusive safety: what new global data reveals about gender, violence, and erasure
Movements against gender equality, lack of human rights data contributing factors.
“My identity could be revealed, people can say whatever they want [online] without consequences. [Hormone replacement therapy] is illegal here so I’m just waiting to find a way to get out of here.”
-Anonymous respondent to the 2024 F&M Global Barometers LGBTQI+ Perception Index from Iraq, self-identified as a transgender woman and lesbian
As the campaign for 16 Days Against Gender-Based Violence begins, it is a reminder that gender-based violence (GBV) — both on– and offline — not only impacts women and girls but everyone who has been harmed or abused because of their gender or perceived gender. New research from the Franklin & Marshall (F&M) Global Barometers and its report A Growing Backlash: Quantifying the Experiences of LGBTQI+ People, 2022-2024 starkly show trends of declining safety among LGBTQI+ persons around the world.
This erosion of safety is accelerated by movements against gender equality and the disappearance of credible human rights data and reporting. The fight against GBV means understanding all people’s lived realities, including those of LGBTQI+ people, alongside the rights we continue to fight for.
We partnered together while at USAID and Franklin & Marshall College to expand the research and evidence base to better understand GBV against LGBTQI+ persons through the F&M Global Barometers. The collection of barometers tracks the legal rights and lived experiences of LGBTQI+ persons from 204 countries and territories from 2011 to the present. With more than a decade of data, it allows us to see how rights have progressed and receded as well as the gaps between legal protections and lived experiences of discrimination and violence.
This year’s data reveals alarming trends that highlight how fear and violence are, at its root, gendered phenomena that affect anyone who transgresses traditional gender norms.
LGBTQI+ people feel less safe
Nearly two-thirds of countries experienced a decline in their score on the F&M Global Barometers LGBTQI+ Perception Index (GBPI) from 2022-2024. This represents a five percent drop in global safety scores in just two years. With almost 70 percent of countries receiving an “F” grade on the GBPI, this suggests a global crisis in actual human rights protections for LGBTQI+ people.
Backsliding on LGBTQI+ human rights is happening everywhere, even in politically stable, established democracies with human rights protections for LGBTQI+ people. Countries in Western Europe and the Americas experienced the greatest negative GBPI score changes globally, 74 and 67 percent, respectively. Transgender people globally reported the highest likelihood of violence, while trans women and intersex people reported the highest levels of feeling very unsafe or unsafe simply because of who they are.
Taboo of gender equality
Before this current administration dismantled USAID, I helped create an LGBTQI+ inclusive whole-of-government strategy to prevent and respond to GBV that highlighted the unique forms of GBV against LGBTQI+ persons. This included so-called ‘corrective’ rape related to actual or perceived sexual orientation, gender identity, or expression” and so-called ‘conversion’ therapy practices that seek to change or suppress a person’s gender identity or expression, sexual orientation, or sex characteristics. These efforts helped connect the dots in understanding that LGBTQI+ violence is rooted in the same systems of inequality and power imbalances as the broader spectrum of GBV against women and girls.
Losing data and accountability
Data that helps better understand GBV against LGBTQI+ persons is also disappearing. Again, the dismantling of USAID meant a treasure trove of research and reports on LGBTQI+ rights have been lost. Earlier this year, the US Department of State removed LGBTQI+ reporting from its annual Human Rights Reports. These played a critical role in providing credible sources for civil society, researchers, and policymakers to track abuses and advocate for change.
If violence isn’t documented, it’s easier for governments to deny it even exists and harder for us to hold governments accountable. Yet when systems of accountability work, governments and civil society can utilize data in international forums like the UN Universal Periodic Review, the Convention on the Elimination of All Forms of Discrimination Against Women, and the Sustainable Development Goals to assess progress and compliance and call for governments to improve protections.
All may not be lost if other countries and donors fill the void by supporting independent data collection and reporting efforts like the F&M Global Barometers and other academic and civil society monitoring. Such efforts are essential to the fight against GBV: The data helps show that the path toward safety, equality, and justice is within our reach if we’re unafraid of truth and visibility of those most marginalized and impacted.
Jay Gilliam (he/him/his) was the Senior LGBTQI+ Coordinator at USAID and is a member of the Global Outreach Advisory Council of the F&M Global Barometers.
Susan Dicklitch-Nelson (she/her/hers) is the founder of the F&M Global Barometers and Professor of Government at Franklin & Marshall College.
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