DLKLawGroup PC has always been a leader in LGBT estate planning. Each of our attorneys understands the many complexities specific to gay, lesbian, bisexual and transgender estate planning and stays abreast of the evolving legal landscape. The firm conducts frequent educational seminars within the LGBT community and consults on a regular basis with institutions regarding important legal developments.
The new California law that requires registered domestic partners to file their state taxes like married people is a symbolic victory for gay couples. But the financial impact won’t always be positive, and most will face new tax-filing and planning headaches when the law takes effect next year.
Late in 2003, Governor Gray Davis signed the groundbreaking legislation known as AB 205, the Domestic Partner Rights and Responsibilities Act of 2003. When this new law went into effect on January 1, 2005, same sex partners who had registered with the state of California as registered domestic partners (“RDPs”) became vested with essentially all of the same rights and obligations that married persons have under California law.
It’s not unusual for people’s eyes to glaze over when the topic of retirement plans comes up. But this is one time when you might want to pay attention because the Pension Protection Act of 2006 (the Act) includes provisions that really are great news for same-sex partners and other unmarried persons. The first important modification is that a non-spouse may now be the designated beneficiary for an eligible retirement plan. The second change is that an employee who designates a non-spouse beneficiary may now tap into the employee’s retirement funds in certain “hardship” situations to help the beneficiary. Each of these provisions is discussed in more detail below. However, in recognition of those glazed looks, some basic information about pension plans will probably be helpful.
The California Franchise Tax Board has published guidelines to help registered domestic partners (RDPs) and their tax practitioners file state income tax returns for fiscal year 2007. This article provides information about who is affected and what to expect from the new law that requires RDPs to characterize their earned income as community property for income tax purposes and to file their state income tax returns jointly or separately “by applying the standards applicable to spouses.”