Presenters James R. Brockway, Louis R. Piscatelli and N. Todd Angkatavanich discuss estate and income tax planning after the DOMA ruling.
On June 26, 2013, the U.S. Supreme Court struck down in the Windsor case the Federal Defense of Marriage Act (DOMA), thereby enabling married same-sex couples to enjoy the same legal rights as heterosexual married couples.
Same-sex married couples will now enjoy benefits including:
- Filing joint income tax returns;
- Claiming the marital deduction for gift and estate tax purposes;
- Naming the spouse as the beneficiary under a qualified retirement account and allowing the spouse; "roll over" the account into his own account, electing portability of the deceased spouse's unused applicable exclusion amount;
- Simplifying the basis and contribution rules with respect to jointly owned property;
- Splitting of inter-vivos gifts;
- Eliminating adverse tax consequences for the transfer of property pursuant to a marriage settlement agreement; and
- Granting certain Social Security, Medicare and Medicaid benefits.
This case will have a far-reaching impact on estate planning practitioners. Our presenters will discuss the recent case and what estate planners need to know when advising same-sex couples. The presenters will provide suggestions for immediate action and also discuss the application of the case to various residency scenarios.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
