Fifteen years ago, at the age of 50, Robert ("Robin") moved from Virginia to Manhattan. He came north to assume a new position teaching English at New York University and to live, finally, as an openly gay man. This was a brave leap for a Southern gentleman who had been married for 30 years and raised six children. After relinquishing the family home in the divorcee, all Robin had to support his new life was a small teacher's pension, which he promptly raided for a down payment on a tiny uptown apartment.

Now 65, Robin has made a new family with his partner of five years, Richard, who is also a father and divorce. Like many same-sex couples, they believe that uniting their lives and expressing commitment to each other includes merging their finances. Robin explains in his soothing drawl, "We wanted to put our money where our mouths were, so to speak."

First, they combined their real estate investments by purchasing an apartment large enough for visits by their combined brood of eight grown children. At the closing, their lawyer had to remind the title company to record their deed as joint tenants with rights of survivorship, instead of joint tenants in common. Richard explains, "if you don't clearly advise title companies on how you want the names to appear, they will presume otherwise. It is a hetero-sexist assumption."

There are significant consequences to the two ways of recording a deed. If an asset is owned with rights of survivorship, the joint owner will inherit the other share automatically upon his partner's death. But as tenants in common, the deceased partner's share will go through the long, arduous process of probate. Then, if a partner's will doesn't name his desired heir, the state will give it to his next of kin. "As you know," remarks Robin's financial adviser, "the state never considers a gay partner kin."

So, of course, the next step for the couple was to draft their wills. J. Rush Barnes a New York City attorney who specializes in a range of gay legal issues, ensured that their wills provided for each other, as well as for their children. Barnes created a simple trust structure that will go into effect upon the death of either partner. When the first man in the couple dies, all of his assets will go into a trust. While the other partner is alive, he can use the trust for his own support. But upon the second man's death, both partners' respective assets and family heirlooms will be distributed to the appropriate children.

Robin is one of the fortunate few to have a disability insurance policy. Many applicants are turned away simply for either (1) any history of back trouble or (2) ever having consulted a mental health professional. These are two conditions for which most people go out on disability, according to the insurance industry. "That, unfortunately, eliminates most of us," jokes Hatch.

On the other hand, almost everyone can qualify for a life insurance policy, Even individuals with "impaired health risks" can get life insurance, albeit at a higher cost. Christopher Street Financial has been able to obtain life insurance for a woman six months after she had cancer surgery, as well as for individuals who are HIV positive.

In 1996, Robin put his disability policy into action after experiencing HIV-related symptoms. As Robin was receiving only partial salary payments, Richard's income became critical to supporting their apartment. Though they owned and maintained it jointly and both contributed to the mortgage and maintenance payments, Richard assumed all the tax benefits. One of the only tax strategies that specifically benefits gay or unmarried couples is deduction shifting. If a couple owns a home jointly but the partners fall into two very different income tax brackets, they can use all of the interest and real estate tax deductions to reduce the income taxes of the higher earner. "It's perfectly kosher," explains Christopher Street Financial's tax expert. "You just have to make sure that the couple doesn't double-dip." In other words, both partners cannot claim the same deductions.

After successfully combining their lives and finances, Robin and Richard took the ultimate romantic step--they made arrangements to be together after life. At Trinity Cemetery, overlooking the Hudson River, they acquired a joint crypt, which is already engraved with both their names.

NFP Securities, Inc. does not offer tax or legal advice.

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