R.C. Lim, Attorney and Counselor at Law

Elderly Gay Couple In Sonoma County Wrongfully Separated

For those gay couples looking for a cautionary tale of what can go wrong as you get older, the recent story of an elderly couple who were wrongfully separated and deprived of their assets is chilling. In brief, the fall of an eighty year old man led county employees to visit the home and admit the couple. The county employees admitted the couple to different nursing homes. In the case of the younger partner, it was entirely against his will. The older partner who had fallen spent the final two months of his life alone and away from his partner of twenty years. Despite the fact that documents had been prepared giving each other powers of attorney, healthcare directives, and wills, county officials went into court claiming that the two longtime partners were just roommates and asked for a court order to sell their stuff.

This couple evidently had already done the estate planning to prepare themselves for such an event. Worse still, these ugly acts were committed by county employees under the color of law. It shows in yet another glaring fashion why prohibiting gay marriage is wrong.

Point - Counterpoint

A NY Times Op-Ed piece by Ray Madoff argues that there needs to be an exemption to any new estate tax for family farmers and small business owners.

Others disagree stating that it’s money that can scarcely be lost from the Treasury and that the exceptional amounts involved only include families with very large farm or business operations.

Since one of the complaints of the estate tax is that it distorts wealth distribution and encourages individuals to pursue diseconomy, this can scarcely be called a cure. Would Sam Walton’s children be permitted to take free of tax as heirs to a “family business”? On the other hand, what of a family farm in California that gainfully employs four or more heirs in comfortable but not extravagant lives? This is the complicated debate that awaits Congress after they finish bickering about Afghanistan, health care, and the environment.

National Heritage Foundation files Bankruptcy

Founded on the premise that it’s not only the bona fide charitable organizations that should be able to overpay their employees, the National Heritage Foundation has been in a battle to defend the idea that all citizens should be able to create their own mini-charities and then take both the tax deductions AND salaries. Too agressive in its strategy and execution, the National Heritage Foundation first fought the IRS and then state court on fraud charges and lost. Now the NHF is in bankruptcy, and those eager to save a few dollars on their tax bill are learning the hard way the costs of overzealous planning. Annuitants owed as much as $165,000 per year will be forced to do without payment until NHF emerges from bankruptcy.

http://query.nytimes.com/gst/fullpage.html?res=9805E4DF1338F93BA35756C0A9669C8B63&sec=&spon=&partner=permalink&exprod=permalink

http://www.forbes.com/2009/01/28/charitable-gift-annuity-personal-finance-taxes_0127_gift_annuity.html