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2011 may be a very taxing year for same-sex couples, regardless of marital status

Onerous federal estate tax set to return

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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

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Commentary

Defunding LGBTQ groups is a warning sign for democracy

Global movement since January 2025 has lost more than $125 million in funding

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(Washington Blade photo by Michael Key)

In over 60 countries, same-sex relations are criminal. In many more, LGBTIQ people are discriminated against, harassed, or even persecuted. Yet, in most parts of the world, if you are an LGBTIQ person, there is an organization quietly working to keep people like you safe: a lawyer fighting an arrest, a shelter offering refuge from violence, a hotline answering a midnight call. Many of those organizations have now lost so much funding that they may be forced to close.

One year ago this week, the U.S. government froze foreign assistance to organizations working on human rights, democracy, and development worldwide. The effects were immediate. For LGBTIQ communities, the impact has been severe and far-reaching.

For 35 years, Outright International has helped build and sustain the global movement for the rights of LGBTIQ people, working with local partners in more than 75 countries. Many of those partners are now facing sudden closure.

Since January 2025, more than $125 million has been stripped from efforts advancing the human rights of lesbian, gay, bisexual, transgender, intersex, and queer people globally. That figure represents at least 30 percent of yearly international funding for this work. Organizations that ran emergency shelters, legal defense programs, and HIV prevention services have been forced to close or drastically scale back operations. At Outright alone, we lost funding for 120 grants across nearly 50 countries. We estimate that, without intervention, 20 to 25 percent of our grantee partners risk shutting down entirely.

But this is not only a story about one community. It is a story about how authoritarianism works, and what it costs when we fail to recognize the pattern.

The playbook is not subtle

Researchers at Outright and partners across human rights and democracy movements have documented the same sequence playing out across sectors worldwide: governments defund organizations before passing restrictive legislation, eliminating the groups most likely to document abuses before abuses occur.

In December, CIVICUS downgraded its assessment of U.S. civic freedoms from “narrowed” to “obstructed,” citing what it called a “rapid authoritarian shift.” The message was unmistakable: independent organizations that hold power to account are under growing pressure, in the United States and around the world.

And the effects have cascaded globally. When one of the world’s largest funders of democracy support and human rights work withdraws, it doesn’t just leave a funding gap. It sends a signal to authoritarians everywhere: the coast is clear.

The timing is not coincidental. In the super election year of 2024, 85 percent of countries with national elections featured anti-LGBTIQ rhetoric in campaigns. Across the 15 countries we tracked, governments proposed or enacted laws restricting gender-affirming care, rolling back legal gender recognition, and censoring LGBTIQ expression. The defunding often came first. Governments know that if they can starve the movement, there will be no one left to document what comes next.

Why US readers should care

It may be tempting to see this as a distant crisis, especially at a moment when LGBTIQ rights in the United States are under real pressure. But this story is closer to home than it appears. American funding decisions often help determine whether organizations protecting LGBTIQ people abroad can keep their doors open. And when independent organizations are weakened, no matter where they are, the consequences do not stay contained. The same political networks driving anti-LGBTIQ legislation in the United States share strategies and resources with movements abroad. Global repression and domestic rollback are not separate stories. They are the same story, unfolding in different places.

LGBTIQ organizations are often the first target, but never the last

Why target LGBTIQ communities first? Because we are politically easier to isolate. The same playbook — foreign funding restrictions, bureaucratic harassment, banking access denial — is now being deployed against environmental groups, independent media, women’s rights organizations, and election monitors. When one part of our community is silenced, all of us become more vulnerable. What happens to us is a preview of what happens to everyone.

This is not speculation. It is documented history. In Hungary, the government restricted foreign funding for civil society before passing its “anti-LGBTQ propaganda” law. In Russia, “foreign agent” designations preceded the criminalization of LGBTIQ identity. In Uganda, funding restrictions on human rights organizations came before the Anti-Homosexuality Act. The pattern repeats because it works.

And yet, even as these attacks intensify, victories continue. In 2025, Saint Lucia struck down a colonial-era law criminalizing consensual same-sex intimacy after a decade of regional planning and coalition-building. Courts in India, Japan, and Hong Kong upheld trans people’s rights. Budapest Pride became the largest in Hungarian history — and one of the country’s biggest public demonstrations — despite a government ban. In Thailand, years of patient advocacy culminated in marriage equality becoming law in 2025, the first such victory in Southeast Asia.

These wins happened because our movement built the capacity to survive hostility. Legal defense funds. Documented evidence. Regional coalitions. Emergency response networks. The organizations behind these victories are precisely the ones now facing drastic funding cuts and even closure.

What we are doing and what we need

On Jan. 20, 2026, Outright International publicly launched Funding Our Freedom, a $10 million emergency campaign running through June 30, 2026. We have already secured over $5 million in pledges from more than 150 donors. But the gap remains enormous.

The campaign supports two priorities that must move together. Half of the funds go directly to frontline LGBTIQ organizations facing sudden shortfalls: keeping staff paid, maintaining safe spaces, securing legal support, and continuing essential services. The other half supports Outright’s global work: documenting abuses, training activists, and advocating for LGBTIQ inclusion at the United Nations and other international forums. This is how LGBTIQ people remain seen, heard, and defended, even when governments attempt to erase them.

We structured Funding Our Freedom this way because frontline support without protection is fragile, and global advocacy without frontline truth is hollow. Both must survive.

Funding Our Freedom is not charity. It is how we keep the global LGBTIQ movement alive when governments try to erase it.

A call to those who believe in equality and democracy

If you are part of the LGBTIQ community, this moment is personal. Whether you give, share this work, host a small fundraiser, or bring others into the effort, you become part of what keeps our global community connected and protected.

If you are an ally or simply someone who believes in fairness, free expression, and accountable government, this fight is yours too. The defunding of LGBTIQ organizations is not an isolated decision. It is a test case. If it succeeds, the same tactics will be used against every group that challenges power and defends vulnerable people.

We are not asking for sympathy. We are asking for commitment. The organizations now being forced to close are the ones that document abuses, provide legal defense, support people in crisis, and show up when no one else will. If they disappear, we lose more than services. We lose the ability to know what is happening and to respond.

Authoritarians understand this. That is why they target us first.

The question is whether the rest of us understand it in time.

Maria Sjödin is the executive director of Outright International, where they has worked for over two decades advocating for LGBTIQ human rights worldwide. Learn more at outrightinternational.org/funding-our-freedom.

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Commentary

The power of no

Pick one priority this year, not 10

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(Photo by Damian Palus/Bigstock)

January arrives with optimism. New year energy. Fresh possibilities. A belief that this could finally be the year things change. And every January, I watch people respond to that optimism the same way. By adding.

More workouts. More structure. More goals. More commitments. More pressure to transform. We add healthier meals. We add more family time. We add more career focus. We add more boundaries. We add more growth. Somewhere along the way, transformation becomes a list instead of a direction.

But what no one talks about enough is this: You can only receive what you actually have space for. You don’t have unlimited energy. You have 100 percent. That’s it.  Not 120. Not 200. Not grind harder and magically find more.

Your body knows this even if your calendar ignores it. Your nervous system knows it even if your ambition doesn’t want to admit it. When you try to pour more into a cup that’s already full, something spills. Usually it’s your peace. Or your consistency. Or your health.

What I’ve learned over time is that most people don’t need more motivation. They need clarity. Not more goals, but priority. Not more opportunity, but discernment.

So this January, instead of asking what you’re going to add, I want to offer something different. What if this year becomes a season of no.

No to things that drain you. No to things that distract you. No to things that look good on paper but don’t feel right in your body. And to make this real, here’s how you actually do it.

Identify your one true priority and protect it

Most people struggle with saying no because they haven’t clearly said yes to anything first. When everything matters, nothing actually does. Pick one priority for this season. Not 10. One.  Once you identify it, everything else gets filtered through that lens. Does this support my priority, or does it compete with it?

Earlier this year, I had two leases in my hands. One for Shaw and one for National Landing in Virginia. From the outside, the move felt obvious. Growth is celebrated. Expansion is rewarded. More locations look like success. But my gut and my nervous system told me I couldn’t do both.

Saying no felt like failure at first. It felt like I was slowing down when I was supposed to be speeding up. But what I was really doing was choosing alignment over optics.

I knew what I was capable of thriving in. I knew my limits. I knew my personal life mattered. My boyfriend mattered. My family mattered. My physical health mattered. My mental health mattered. Looking back now, saying no was one of the best decisions I could have made for myself and for my team.

If something feels forced, rushed, or misaligned, trust that signal. If it’s meant for you, it will come back when the timing is right.

Look inside before you look outside

So many of us are chasing who we think we’re supposed to be— who the city needs us to be. Who social media rewards. Who our resume says we should become next. But clarity doesn’t come from noise. It comes from stillness. Moments of silence. Moments of gratitude. Moments where your nervous system can settle. Your body already knows who you are long before your ego tries to upgrade you.  

One of the most powerful phrases I ever practiced was simple: You are enough.

I said it for years before I believed it. And when I finally did, everything shifted. I stopped chasing growth just to prove something. I stopped adding just to feel worthy.  I could maintain. I could breathe. I could be OK where I was.

Gerard from Baltimore was enough. Anything else I added became extra.

Turning 40 made this clearer than ever. My twenties were about finding myself. My thirties were about proving myself. My forties are about being myself.

I wish I knew then what I know now. I hope the 20 year olds catch it early. I hope the 30 year olds don’t wait as long as I did.

Because the only way to truly say yes to yourself is by saying no first.

Remove more than you add

Before you write your resolutions, try this. If you plan to add three things this year, identify six things you’re willing to remove. Habits. Distractions. Commitments. Energy leaks.

Maybe growth doesn’t look like expansion for you this year. Maybe it looks like focus. Maybe it looks like honoring your limits. January isn’t asking you to become superhuman. It’s asking you to become intentional. And sometimes the most powerful word you can say for your future is no.

With love always, Coach G.


Gerard Burley, also known as Coach G, is founder and CEO of Sweat DC.

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Commentary

Honoring 50 queer, trans women with inaugural ‘Carrying Change’ awards

Naming the people who carry our movements forward

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Dear friends, partners, and community:

We write to you as two proud Black and Brown queer women who have dedicated our lives to building safer, bolder, and more just communities as leaders, organizers, policy advocates, and storytellers.

We are June Crenshaw and Heidi Ellis. 

June has spent almost 10 years guiding the Wanda Alston Foundation with deep compassion and unwavering purpose, ensuring LGBTQ+ youth experiencing homelessness have access to stability, safety, and a path forward. Her leadership has expanded housing and support services, strengthened community partnerships, and helped shift how Washington, D.C. understands and responds to the needs of queer and trans young people. In her current role with Capital Pride Alliance, June advances this work at a broader scale by strengthening community infrastructure, refining organizational policies, and expanding inclusive community representation.

Heidi is the founder of HME Consulting & Advocacy, a D.C.–based firm that builds coalitions and advances policy and strategy at the intersection of LGBTQ+ justice and racial equity. Her work spans public service, nonprofit leadership, and strategic consulting to strengthen community-driven solutions.

We’re writing because we believe in intentional recognition — naming the people who carry our movements forward, who make room for those who come next, and who remind us that change is both generational and generative. Too often, these leaders do this work quietly and consistently, without adequate public acknowledgment or what one might call “fanfare,” often in the face of resistance and imposed solitude — whether within their respective spaces or industries.

Today, we are proud to introduce the Torchbearers: “Carrying Change” Awards, an annual celebration honoring 50 unstoppable Queer and Trans Women, and Non-Binary People whose leadership has shaped, and continues to shape, our communities.

This inaugural list will recognize:

  • 25 Legends — long-standing leaders whose decades of care, advocacy, and institution-building created the foundations we now stand upon; and
  • 25 Illuminators — rising and emerging leaders whose courage, creativity, and innovation are lighting new paths forward.

Why these names matter: Movement memory keeps us honest. Strategy keeps us effective.  Recognition keeps us connected. By celebrating both Legends and Illuminators side by side, we are intentionally bridging histories and futures — honoring elders, uplifting survivors, and spotlighting those whose work and brilliance deserve broader support, protection and visibility.

Who will be included: The Torchbearers will represent leaders across a diverse range of sectors, including community organizing, public service, sports, government, entertainment, business, education, legal industry, health, and the arts — reflecting the breadth and depth of queer leadership today. They include organizers providing direct service late into the night; policy experts shaping budgets and laws; artists and culture workers changing hearts and language; healers and mutual-aid leaders; and those doing the quiet, essential work that sustains us all. 

Intersectionality is our core commitment: identity in its fullness matters, and honorees must reflect the depth, diversity, and nuance of queer leadership today. 

How you can engage: Nominate, amplify, sponsor, and attend. Use your platforms to uplift these leaders, bring your organization’s resources to sustain their work, and help ensure that recognition translates into real support — funding, capacity, visibility, and protection.

We are excited, humbled, and energized to stand alongside the women and non-binary leaders who have carried us, and those who will carry this work forward. If history teaches us anything, it’s that the boldest change happens when we shine light on one another, and then pass the flame.

YOU CAN MAKE A NOMINATION HERE

June Crenshaw serves as deputy director of the Capital Pride Alliance. Heidi Ellis is founder of HME Consulting & Advocacy.

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