Advocates: Leibovitz's Loss

Is the famed photographer the victim of antigay tax laws?

When news of Annie Leibovitz's money woes came to light in March, many wondered why one of the world's most famous photographers would need to borrow $15.5 million and pledge all rights to extensive property and all her work as collateral. The current speculation on the cause of her financial trouble was her inheritance from longtime partner Susan Sontag, who died in 2004. Since same-sex partners do not have the same protections as couples in federally recognized marriages, Leibovitz was required to pay up to a whopping 50% estate tax on several buildings bequeathed by Sontag, whereas a straight married couple would pay significantly less -- specifically, zero . In addition to federal estate taxes, many states also impose a kind of death tax that can be avoided by legal surviving spouses or if the state has a "marriage-like" status. In New Jersey, for example, you can expect to pay 15% on anything over $500 of inherited assets unless you've entered into a civil union. So, depending on where you live and whether you've tied the local knot, your partner may need to turn to the nearest pawnshop after you're gone. Don't forget that these assets will be taxed again upon the beneficiary's death. While a good estate tax plan can slightly mitigate this financial burden, only full federal marriage rights will eliminate it.

Finding the Green in Green
Putting your money where your heart is
Socially conscious investing is an age-old strategy of selecting investments based on one's beliefs. There are organizations and fund companies that will screen investments to suit any value system, finding, for example, companies that have strong antidiscrimination policies or those that don't deal in tobacco. Green investors and those interested in the development of clean and sustainable energy sources have new friends in high places. The federal government is planning significant investment in green technologies. President Obama's economic stimulus plan contains significant spending and tax opportunities for the alternative energy industry. This means that there may be good opportunities for new investors. To find funds that invest in companies pursuing earth-friendly energy options like solar and wind power, geothermal energy, or cogeneration, investors now have a resource in AltEnergyStocks.com .

Jennifer Hatch is owner and president of Christopher Street Financial. To ask a money question, e-mail finance@advocate.com .

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Reader Comments

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Name: Paul
Date posted: 4/16/2009 3:40:00 PM
Hometown: San Francisco

Comment:
Let's not forget that in addition to be double-taxed upon death, same-sex spouses are also excluded from receiving the spousal benefits from Social Security that federally-recognized opposite-sex spouses receive. Honestly, I don't know how can gay people can afford to get old.
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Name: Alec
Date posted: 4/12/2009 12:41:00 PM
Hometown: Athens, Tx

Comment:
It's terrible that Leibovitz would have to experience this over the loss of someone she loved. It would be no different if it were any other person--rich, poor, otherwise. Having said that, I can say I empathize with fred james. He is verbalizing what so many people feel regarding the illusion of greed and selfishness of some of the wealthy in our country. The problem is much deeper. As a whole, our priorities a so off!
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Name: Hilary Smith
Date posted: 4/12/2009 4:10:00 AM
Hometown: Cotati, CA

Comment:
Without the "death tax" a de facto aristocracy is created. If your parents are wealthy you are born with privilege and without the "death tax" that privilege becomes entrenched in your lineage. You automatically don't have to work as hard for your achievements as would a working class person. How does that support the myth of American meritocracy? The estate tax is fair because that money can be used to pay for programs (like college) that hard-working poor people can use to get ahead. Without the "death tax" wealthy families are able to hoard resources, thereby ensuring that their children and grandchildren will have opportunities handed to them. The estate tax is fair. And Diane, by insulting fred james instead of pointing out the flaws in his point of view, you are using an ad hominem argument which is a logical fallacy. It's also lazy. If your position merits consideration, you should at least attempt to defend it.
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Name: diane
Date posted: 4/12/2009 3:30:00 AM
Hometown: novato,

Comment:
I feel so sad that poor you are so ignorant that you don't even get it! What an idiot you are! It's not worth trying to educate you or enlighten you.
Back to top Report Abuse
Name: fred james
Date posted: 4/9/2009 4:33:00 PM
Hometown: guadalajara

Comment:
Gee, too bad, she would have to put up $15 million to inherit $30 million. I feel so sad for the filthy rich.

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