Union dues: LGBT seniors risk losing some benefits if they decide to marry
Who could blame senior gay and lesbian couples, who may have waited a lifetime to say “I do,” for wanting to rush to the altar.
South Florida retirement experts, however, say those love birds need to do a reality check before buying the rings. That’s because deciding to wed brings pitfalls as well as benefits, particularly for older adults.
Having a spouse changes an individual’s legal status, regardless if the couple is gay or straight. Inheritance rights, next of kin designation, tax status, and eligibility for benefits such as disability payments and government subsidized nursing home care can be affected.
The pros and cons for legal marriage will vary from couple to couple, depending on their assets, savings, health history and other factors, said Scott Solkoff, an elder-law attorney in Delray Beach, Florida, who has done estate planning for gay and lesbian clients.
For example, Medicaid, the only government program that pays for nursing home care, covers people with limited resources. But the program must consider the assets and incomes of both legally married spouses when determining eligibility – meaning a high-earning partner might disqualify the one with less, Solkoff said.
Other potential downsides to matrimony: A disabled senior could lose Supplemental Security Income payments if a marriage increases his or her income. Increased income post-marriage also could disqualify a couple from housing subsidies, experts say.
In some cases, opting for a non-legal commitment ceremony is a better choice, Solkoff said.
On the upside, having federally recognized marriage rights now allows older LGBT couples to enjoy the same spousal benefits that straight couples are entitled to, Solkoff said. Those include being able to draw on their deceased spouse’s Social Security earnings if greater than their own, qualifying for spousal veteran’s benefits like a burial plot and assistance with care expenses, and inheritance rights to property.
Anthony Timiraos, CEO/president of Our Fund, said the marriage ruling has created a new, uncharted world even for couples who have been together for decades. “It’s a matter of ‘Be careful what you ask for.’ Now (LGBT people) have all the issues involving marriage that straight people do,” said Timiraos.
Our Fund, a nonprofit foundation, is working with other LGBT advocacy groups to create resource directories, Timiraos said, listing health care, financial and other professionals who have had additional training in LGBT issues or a strong track record in the community.
LGBT advocates especially are concerned about senior couples for several reasons, said Michael Adams, executive director of SAGE USA, a national nonprofit serving LGBT elders. One is that making financial mistakes is more devastating for any older person, he said, as they are no longer working.
Seniors also depend more than young adults on things like Social Security, work pensions and veterans benefits, Adams said.
That’s the reason SAGE created “Talk Before You Walk” (down the aisle, that is). The free educational website gives tips on how rights and benefits can change, for better and for worse, for seniors age 65 and older as well as those who are younger. (For more information: talkbeforeyouwalk.org.)
While the LGBT community is at “an amazing moment of celebration” following the marriage equality ruling, “our concern is that people will make a decision based on that excitement instead of taking a step back and considering the implications,” Adams said.