Financial

LGBT community needs long-term care

Published

13 years ago

April 19, 2012

WBadmin

By MICHAEL GLASSMAN
Special to the Blade

There is a huge need for long-term care insurance in the LGBT community simply because most members of the LGBT community do not have children to look after them in their older age. An article that appeared on Businesswire.com states:

“Having choices and protecting retirement assets and personal savings from long-term care costs should be important to everyone, however, it may be especially significant for the LGBT community. The reality is the LGBT community lacks the traditional support that married heterosexuals enjoy and as a result face a greater need for long-term care insurance.”

What unique considerations do gay and lesbian couples need to take into account when buying Long Term Care Insurance? Mainly, insurance companies have specific requirements for recognizing gay and lesbian partnerships. However, many blue-chip Long Term Care Insurance carriers offer the married, partner or spousal discount to gay and lesbian couples provided they have been in a committed relationship for at least one to three years (this varies from company to company). The married, partner, or spousal discount is significant with companies like Massachusetts Mutual Life Insurance Company (MassMutual) offering a 30 percent premium discount. Typically, discounts apply to each policy when both people meet the criteria for the covered partner discount. Generally, both partners must be approved and both must maintain coverage beyond the free look period. To be eligible for a covered partner discount, certain criteria must be met. Discounts are subject to state approval and may not be available in all states

You have likely seen the statistics that talk about the risk of needing long-term care as you age. And like most, you’ve told yourself “It will never happen to me.” You may very well be right. But what if you’re not? Rather than focus on the risk of an event happening to you, take a moment to consider the consequences that providing care over an extended period of years would have on the emotional, physical and financial well-being of those you have promised to take care of.

Many people believe that Medicare, Medicaid or the VA if they are veterans will pay for their care. These programs primarily cover medical procedures or rehabilitative care.

Long-term care requires custodial care. This is defined as the assistance or supervision that a person who is physically or cognitively impaired needs to get through the day. With few exceptions, no federal or state program will pay for custodial assistance over an extended period of years. Therefore, the family has to pay out of pocket.

No one can guarantee that you won’t need care. But you can create a plan that will protect your partner and family.

The plan should preserve your family’s emotional and physical well being by allowing them to hire professionals to provide care:

The plan should allow you to preserve your retirement portfolio.

Once this plan is in place, long-term care insurance can be an effective solution.

Implemented correctly it provides a stream of income that pays for professionals to help keep you at home and/or residential alternatives such as assisted living facilities or nursing homes.

This allows the following:

• Your family to supervise rather than provide your care, helping to protect their emotional and physical wellbeing.

• Your retirement income to keep funding your lifestyle, therefore allowing you to keep your financial promises

• Helps you preserve the financial viability of your surviving partner or children who may need an inheritance.

Long-term care describes the care you need if you become incapacitated, either physically or cognitively, due to a degenerative disease or incident such as Parkinson’s, stroke, diabetes, or Alzheimer’s.

These conditions severely compromise your ability to get through the most basic of daily routines. In reality, the need for long-term care is a safety issue that requires 24 hour a day attention.

Since you are no longer safe, those you love are forced to reorient their lives to make sure that you are. This change can have a devastating impact on their emotional and physical well-being.

There are unique tax advantages that long-term care insurance offers business owners and/or their employees.

If you have a C-Corp you have the following benefits:

• 100 percent of the premium is deductible as an ordinary business expense for all employees regardless of percentage of ownership. IRC 162(a).

• The company can also deduct 100 percent for the employee’s spouse (check with your CPA) and the couple’s tax dependants, whether or not they are considered employees. IRC 162(1),162(1)(2), 213(d)

• The premium is excluded from the employee’s income and therefore not subject to federal income tax withholding, social security, Medicare and federal unemployment taxes. IRC106(a), 105(b)

• The company is not subject to anti-discrimination rules; it can discriminate by class, offering long-term care to some employee classes but not to others. Treasury regulation 1.105-5, 1.106-1

If you have a Subchapter S-Corp:

• Your company can pay and deduct the actual long-term care premium IRC 162(a)

• The premium is considered income to the insured so a W-2 and 1120S is issued. Revenue ruling 91-26

• The shareholder/insured includes the W-2 amount on the 1040 and pays self-employed taxes. He than can deduct the eligible premium and pays taxes on the balance. IRC 162(1), 213(s)(1)(D), 213(d)((10)

• The company is not subject to anti-discrimination rules; it can discriminate by class, offering long-term care to some employee classes but not to others. Treasury regulation 1.105-5, 1.106-1

If you have a Partnership:

• The partnership can pay the actual premium and deduct it as a normal business expense. A K-1 for the amount is issued to the partner who includes it on form 1040 for self employment taxation. IRC 162(a), 707(c)

After paying self-employment tax, the insured deducts the eligible premium based on age. The balance is subject to taxation. IRC731(a)(1)

Partnerships can discriminate by class, offering long-term car insurance to some employee classes but not to others because group long-term care insurance plans are not subject to nondiscrimination rules like other plans. Treasury regulation 1.105-5, 1.106-1

Self-Employed Individuals/Sole Proprietors:

• Your company can pay the long-term care insurance premium and fully deduct it. IRC 162(1)

• The actual premium is reported on your 1040 and subject to self employment tax. IRC 162(1)(2)(c), 213(d)

• After paying self employment tax you deduct the eligible premium based on your age; the balance, if any, is considered income.

You can deduct the premiums paid for employees from business income. IRC 162(a)(1)

The Sole Proprietor can discriminate by class offering long-term care insurance to some employee classes but not to others. Treasury Regulation 1.105-5, 1.106-1

Non-self employed individuals:

• The eligible premium is based on your age.

• You must file an itemized return and list the eligible premium as a medical expense.

• The first 7.5 percent of your adjusted gross income must be subtracted from the total medical expenses listed on your return. The balance, if any, is deducted from your gross income. IRC 213(d)(10)

• The eligible premium can be paid from a Health Saving Account or a Health Reimbursement Account without itemizing and without being reduced by the adjusted Gross Income exclusion. IRC 223(d)(2)(A), IRC Notice 2002-45 for HSA

Your employer can pay the actual premium for your long-term care insurance policy with pre-tax dollars and the premiums are excluded from are excluded from income. Benefits are also tax free.

The value of long-term care insurance

It is the ability to protect the emotional, physical and financial wellbeing of your family should you ever become frail and need care over a period of years.

It does so by providing a stream of income that pays for that assistance, allowing those you love to supervise rather than provide physical care—a great relief during a truly difficult time.

Talk to anyone who has had the experience with long-term care and he or she will tell you that providing direct care can be very emotionally and physically stressful.

Since care is now paid for, there is no need to reallocate your income, so it remains in place to pay for the financial commitments you have taken into retirement. Just as important, your investment portfolio remains intact allowing your tax plan to execute properly and preserves the estate for your surviving partner children or others.

(The information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Special thanks to the Corporation for Long Term Care Certification CRN 201404-159476)

Real Estate

Pride, patriotism, and prosperity

Real estate plays role in honoring servicemembers’ legacy

Published

6 days ago

May 25, 2025

Valerie Blake

(Photo by 1photo/Bigstock)

As the calendar turns to late May and early June, several powerful movements and celebrations converge in a profound and colorful tapestry of remembrance, Pride, and progress.

Memorial Day in the United States honors the sacrifices of military personnel who gave their lives in service. Simultaneously, WorldPride and Black Pride commemorate both the historical struggles and enduring strength of LGBTQ+ communities worldwide.

Though these observances may seem distinct, they share powerful commonalities — solemnity, resilience, and the pursuit of equity. When viewed through the lens of real estate and community development, their intersection reveals the critical importance of space, ownership, and inclusion.

Memorial Day is more than a barbecue, a long weekend, or the unofficial start of summer. It is a solemn remembrance of those who laid down their lives for the ideals of freedom and democracy. Many of these fallen heroes came from marginalized backgrounds, including a rainbow of LGBTQ+ Americans who served valiantly, often without recognition or equal rights at home.

LGBTQ+ service members have fought in silence for decades, only gaining the right to serve openly in recent years and then having that opportunity for some individuals snatched back simply because of who they are. Memorial Day is a chance not only to honor their service but also as a reminder of the injustices they endured.

Real estate plays a role in their legacy. For decades, returning veterans used the GI Bill to buy homes and build generational wealth; however, discriminatory practices like redlining and restrictive covenants denied Black veterans the same opportunities, contributing to the racial wealth gap that persists today. Similarly, LGBTQ+ veterans and their partners often faced housing discrimination with little legal recourse. These systemic barriers underscore how access to safe and equitable housing is part of the fight for justice.

Black Pride events emerged in response to racism within the broader LGBTQ+ movement, asserting that Black queer lives matter and deserve visibility. Held in cities across the globe, Black Pride is not just a festival — it is a political and cultural declaration. It amplifies voices at the intersection of race and sexuality, advocating for people who are disproportionately impacted by housing insecurity and gentrification.

Many urban neighborhoods that were once cultural havens for queer communities are being transformed by rising rents and redevelopment. While revitalization can bring economic opportunity, it must be done equitably, with safeguards in place to ensure that long-standing residents are not displaced. Real estate, in this context, becomes a tool for resistance and renewal.

WorldPride, a global event celebrating LGBTQ+ rights and visibility, is hosted by a different city every few years. It draws millions of participants, shines an international spotlight on LGBTQ+ issues, and highlights disparities in rights and protections worldwide. In countries where queer identities are criminalized, safe housing can be a matter of life and death.

Even in more progressive regions, LGBTQ+ individuals often face subtle yet persistent discrimination from landlords, real estate agents, and lending institutions. In the real estate industry, advocacy groups are working to increase representation, offer training, define ethical responsibilities, and advocate for inclusive policies to ensure housing is truly accessible to all.

The convergence of WorldPride with Memorial Day and Black Pride invites deeper reflection: What kind of world are we building in memory of those who came before? How can we ensure that freedom, the very principle so many fought and died for, includes the right to live openly and securely, regardless of race, gender, or sexuality?

The real estate industry has a unique role in shaping the future. From urban planning to homeownership policy, to income-based downpayment grants, it directly influences who has access to stability and opportunity.

Developers, policymakers, and community leaders must work together to address housing disparities. This includes funding affordable housing, protecting tenants from discrimination, and investing in communities that have been historically excluded. It also means respecting cultural legacies and ensuring that neighborhoods reflect the diversity of the people who live in them.

Memorial Day reminds us of the cost of freedom. International Pride events remind us that the fight for freedom is ongoing. As we honor the fallen, let us also honor the living – those who continue to fight for their right to exist, to love, and to call a place home. Whether waving a flag at a Pride parade, laying a wreath at a soldier’s grave, or signing a first-time homebuyer agreement, these moments are connected by the enduring belief that everyone deserves dignity, safety, and a place to belong.

Valerie M. Blake is a licensed Associate Broker in DC, MD & VA with RLAH @properties. Call or text her at (202) 246-8602, email her at DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.

Real Estate

Tips for buying a house in Rehoboth Beach

And why it’s a great fit for the LGBTQ community

Published

2 weeks ago

May 18, 2025

Justin Noble

Rehoboth Beach, Del. (Washington Blade photo by Daniel Truitt)

If you’ve ever dreamed of owning a charming beach house where flip-flops are considered formalwear and sunsets are your daily entertainment, Rehoboth Beach, Del., might just be your dream come true. It’s not just a beautiful coastal town—it’s also a long celebrated safe haven and vibrant hub for the LGBTQ community. Let’s dive into why Rehoboth Beach is a fabulous choice and how to make a savvy beach house purchase.

Why Rehoboth Is a Vibe (especially for the LGBTQ community)

1. A Welcoming, Inclusive Community

Rehoboth Beach has been lovingly nicknamed the “Nation’s Summer Capital,” and it’s not just because of its proximity to D.C. For decades, Rehoboth has built a reputation as a warm, inclusive, and LGBTQ-friendly destination. From gay-owned businesses to LGBTQ events and nightlife, this is a town where you can truly be yourself.

2. Packed Social Calendar

Poodle Beach, the LGBTQ beach hangout just south of the boardwalk, is always buzzing in the summer. Events like Rehoboth Beach Bear Weekend, Women’s FEST, and CAMP Rehoboth’s myriad of social and wellness events bring people together all year round. That’s right—you’ll never be bored here unless you want to be.

3. Small Town Charm Meets Big City Culture

You get art galleries, drag brunches, live theater, eclectic cuisine, and adorable boutiques—basically everything your soul craves—without the chaos and crowds of major cities. It’s quaint but never boring. Think: Key West vibes with a Delaware zip code.

Tips for Buying Your Dream Beach House

1. Know Your Budget and Think Long Term. Beachfront and near-beach properties come at a premium. Expect to pay a bit more for proximity to the sand and ocean views.

2. Choose Your Neighborhood Wisely. Do you want to be walking distance from the action on the boardwalk? Or do you prefer something more secluded in areas like North Shores or Henlopen Acres?

3. Rental Potential. If you’re not living there full time, your beach house could work overtime as a vacation rental. Rehoboth Beach has a healthy short-term rental market, especially in peak summer. Often times LGBTQ travelers actively seek inclusive, affirming places to stay.

4. Weather the Weather. Like all coastal areas, Rehoboth comes with a side of salt air and occasional storms. Invest in a good home inspection, especially for older homes, and be prepared for the maintenance that comes with beachfront living (yes, that includes sand everywhere).

5. Work With a Local Real Estate Agent. Look for an agent who knows Rehoboth inside and out and understands the unique needs of LGBTQ buyers. This isn’t just a house — it’s your happy place. You want someone who sees that and says, “Let’s find your sanctuary.”

Buying a beach house in Rehoboth Beach isn’t just about real estate — it’s about finding a space that reflects your lifestyle, values, and need for both community and calm. Whether it becomes your full-time home, your weekend escape, or your Airbnb side hustle, Rehoboth welcomes you with open arms (and maybe a mimosa).

Want personalized tips on navigating the Rehoboth Beach real estate market? Let’s chat! I’ll bring the listings if you bring the sunscreen.

Justin Noble is a Realtor with The Burns & Noble Group with Sotheby’s International Realty, licensed in D.C., Maryland, and Delaware. Reach him at [email protected] or 202-234-3344.

Real Estate

Impact of federal gov’t RIF on D.C.’s rental market

A seismic economic change for local property owners

Published

3 weeks ago

May 11, 2025

Scott Bloom

President Trump’s plan to cut the federal workforce presents challenges to local landlords. (Washington Blade file photo by Michael Key)

In a move that could redefine the federal government workforce and reshape the economic fabric of Washington, D.C., President Donald Trump has announced his intentions to significantly reduce federal government spending as well as the number of people the federal government employs.

Calling the federal bureaucracy “bloated” and “out of control,” Trump has repeatedly expressed his desire to cut thousands of federal jobs. While these cuts align with his long-standing push to “drain the swamp,” they come with potential and real collateral damage, especially for landlords in the D.C. area who have relied on government employees as some of their most reliable and long-term tenants.

The potential reduction of thousands of jobs in a city built around government work is not just a political shift—it’s a seismic economic change for the city government as well as for local property owners who have invested in the predictability of a near-constant demand for workers in the federal government agencies, government contractors and the economic ecosystem they sustain.

For landlords, government workers have represented ideal tenants: strong income, long-term leases, and responsible rental histories. Now, that foundation is being shaken in a battle by the Administration against a workforce which is the backbone of the Washington area’s overall economy, and especially its rental market.

With uncertainty looming, landlords are left in a difficult position. If widespread layoffs come to fruition, rental vacancies could spike, rental prices would drop, and previously secure investment properties might become financial liabilities. The sudden shift forces landlords to consider their next moves: how to support tenants facing job losses, how to adapt to a changing market, and how to ensure their own financial stability amid the uncertainty.

For D.C. landlords, this isn’t just about policy shifts or budget cuts, it’s about economic livelihood. The challenge ahead isn’t about just reacting to change, but proactively preparing for it, ensuring they can weather the storm of political maneuvering.

Potential Consequences for D.C. Landlords

1. Increased Risk of Non-Payment of Rent
- Job losses may lead to late or missed rent payments
- As affected tenants struggle financially, they may ask to break their lease to live elsewhere or even move out of the region
- Eviction lawsuits may rise, leading to a long and expensive process for landlords, all while not being able to rent their property to paying tenants.

2. Higher Vacancy Rates

If many government employees leave the D.C. region in search of work elsewhere, the rental demand could decline significantly
Rental properties may sit empty longer, requiring landlords to lower rents to attract new tenants and creating even more financial loss

3. More Competition from Other Landlords

As many more units are vacant on the market, all competing for the same pool of potential tenants, older and smaller rentals, and those located further out from the core of the city will all struggle to find quality renters.
Landlords will need to offer other ways to attract and retain tenants, such as incentives, which could quickly overwhelm the finances of smaller landlords who cannot keep up.

Proactive Strategies for Landlords

To mitigate risks and ensure future rental success, landlords should consider these defensive measures:

1. Strengthen Tenant Relationships and Communication

Encourage tenants to communicate if they anticipate financial hardship due to job loss.
Work out temporary payment plans or partial payments to prevent full non-payment or eviction.
Provide guidance on rental assistance programs available in D.C.

2. Offer Flexible Lease Terms

Consider shorter-term leases than a full 12-month term to accommodate the needs of tenants who may be uncertain about their long-term employment status.
Offer lease renewals at the same rent amount to keep stable tenants and avoid turnover

3. Diversify Tenant Base

If a large portion of tenants are government workers, a landlord may want to market to a broader audience or professionals in private industries.
Advertise on platforms that cater to diverse tenant pools, including students and international workers.

4. Adjust Screening Criteria Thoughtfully

While it’s important to ensure financial stability, consider creditworthiness, assets, and rental history rather than just employment status.
Consider alternative income sources, like family members assisting, part-time work or freelance gigs.

5. Protect Cash Flow with Rent Guarantee Options

Explore rental insurance policies or rent guarantee services to cover losses in case of non-payment.
Consider co-signers or guarantors on leases for new tenants in vulnerable industries, just in case.

6. Adjust Rental Pricing to Stay Competitive

Monitor the D.C. rental market and adjust pricing accordingly to attract new tenants.
Consider offering move-in incentives as a way to stand out. Be creative! Sometimes things you can offer are different and may catch someone’s eye

Long-Term Planning for Rental Success

Build reserves to cover expenses during potential vacancies or rent shortfalls.
Invest in property upgrades to make rentals more attractive to a broader audience, such as young professionals or remote workers.
Consider diversifying property holdings to include areas that are less reliant on government employment.

By taking proactive steps, landlords can safeguard their investments while supporting tenants through economic uncertainty, ultimately leading to a more stable and resilient rental business.

Scott Bloom is owner and senior property manager at Columbia Property Management. For more information, visit ColumbiaPM.com.