Wells Fargo’s Accredited Domestic Partnership Advisor Program

Kyle D. Young, CFP® Vice President – Investment Officer Accredited Domestic Partnership Advisorsm Wells Fargo Advisors

DiversityInc Innovation Fest! – New York Sept. 12, 2012

Supporting the LGBT Community for 25 years!
 Workplace Equality:
– Sexual orientation added to our non-discrimination policy in 1987 and gender identity added in 2004. – Benefits extended to spouses of team members extended to domestic partners of team members since 1998. – Wells Fargo’s PRIDE Team Member Network has 37 chapters and more than 3,500 members across the company. – Top 10 Companies for LGBT Employees (DiversityInc, #1 in 2012) – Top 50 Companies for Diversity (DiversityInc, #33 in 2012) – Perfect Score of 100 on Corporate Equality Index: Rating American Workplaces on LGBT Equality (Human Rights Campaign, 2012, 9 years in a row) – National Gay and Lesbian Chamber of Commerce (NGLCC) Pinnacle Award (2011) – Gay, Lesbian and Straight Education Network (GLSEN) Corporate Champion Award (2011) – GLAAD Advertising Award, Best Print Ad (2011) – GLAAD Media Awards in Advertising for our Advocate Money Minute segments (2010) – – – – – – – – Gay, Lesbian & Straight Education Network (GLSEN) Gay & Lesbian Alliance Against Defamation (GLAAD) Human Rights Campaign National Center for Lesbian Rights National Gay & Lesbian Chamber of Commerce (Founding Member) Out & Equal Point Foundation Reaching Out MBA

Recent External Accolades:

LGBT Community Support:

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Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them work toward succeeding financially.

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My work with the Lesbian, Gay, Bisexual and Transgendered Community

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Marriage…Civil Unions…Domestic Partnerships…

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Spouse v. Non-Spouse

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Uncovering a Need

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Defense of Marriage Act (DOMA)
Federal law that defines Marriage as a legal union between one man and one woman for federal and inter-state purposes. Enacted September 21, 1996

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So what…?

1,138 statutory provisions in which marital status is
a factor in determining benefits, rights and privileges…

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Unlimited Marital Deduction
Federally-recognized married couples have the ability to pass an unlimited amount of assets between them both during life and upon death

Non-Spouse couples are NOT eligible for this benefit
May have major tax implication…

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Triggering Gift Taxes
Title change of real property

Payment of household expenses
Separation or Divorce Settlements

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Gift Taxes
Annual Exclusion of $13,000 Lifetime Exclusion and Gift Tax Rate
2012 Exclusion Max Rate 2013

$5,000,000 $1,000,000 35% 55%

Wells Fargo Advisors is not a tax or legal advisor.

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Estate and Inheritance Taxes
Same-sex partnerships do not provide any of the federal benefits associated with marriage
•The unlimited marital deduction does not apply to same-sex couples, creating a host of estate planning issues •Applies to estates over a set asset level (varies depending on state of residence) •Estates left to non-family members are taxed at a set level (varies depending on state of residence)
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Federal Estate Tax

State Estate Tax

Inheritance Tax Gift Tax
Wells Fargo Advisors is not a tax or legal advisor.

Federal Estate Tax
Exemption Amount and Max Estate Tax Rate
2012 Exemption Max Rate 35% 2013 55% $5,000,000 $1,000,000

** Lack of Portability for Non-Spouse Partners **

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Tax Filing
Federal Income Tax Filing
Must be filed separately due to the Defense of Marriage Act (DOMA)

State Income Tax Filing
Dependent upon state of residency and whether that state recognizes LGBT couples
Wells Fargo Advisors is not a tax or legal advisor.

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Imputed Income

Health Insurance Benefits
Imputed Income and the impact it has on benefits A non-issue for our married colleagues (tax-free fringe benefit)

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Company Sponsored Qualified Retirement Plans
Historically, not estate planning friendly to non-spouse beneficiaries Plans fall under ERISA/Federal guidelines and can change at any time Plans are restrictive!

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Defined Benefit Plans (Pension Plans)

Many company Pension Plans are NOT eligible for rollover to non-spouse beneficiary upon the passing of the employee partner!! Default death benefit payout options utilize ERISA guidelines and are NOT advantageous to nonspouse beneficiaries

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Insurance Protection
Proper titling of policies
- Owner

- Insured
- Beneficiary

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Social Security
Social Security is a Federally mandated program which does not recognize non-spouse partners

-Lost retirement benefits
-Lost inheritance benefits

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Specialized Designation Program
Accredited Domestic Partnership Advisor sm The need for a standard for all advisors working with the LGBT Community

Program created in collaboration with the College for Financial Planning in 2009

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Accredited Domestic Partnership Advisor sm
Prerequisite
- Creating a base of knowledge around broader planning Course of Study - Wealth Transfers

- Federal Taxation
- Retirement Planning

- Financial and Medical End-of-Life Planning
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Accredited Domestic Partnership Advisor sm
125+ Accredited Domestic Partnership Advisors designees at WFA 50-75 additional outside advisors hold designation

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To Identify a Need… To Create a Solution… To Innovate!
… satisfy ALL our customers’ financial needs and help them work toward succeeding financially!

© 2012 Wells Fargo Bank, N.A. All rights reserved. For public use.

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