Basking Ridge, NJ- On June 26, 2015, the U.S. Supreme Court has ruled in favor of Same Sex Marriage across the United States. The Key Points of the Ruling:
1 – Same-sex marriage is a right guaranteed by the 14th Amendment.
2 – States must license and recognize same-sex marriage.
3 – States must recognize out-of-state same sex marriages.
Some issues that will be impacted:
- No more conflict between federal and state laws and taxation.
- More same-sex couples can be legally married (in states that previously did not permit it.)
- Relation to the 2013 U.S. Supreme Court decision in Windsor: Windsor recognized Federal benefits for legal same-sex marriage while this case (Obergefell v. Hodges) allows same-sex marriage in all states and in turn allows more same-sex married couples to take advantage of Federal tax benefits.
The following Tax Benefits are now available to same-sex married couples in all states:
- IRA Spousal Benefits- Spousal IRA contributions (or spousal Roth IRA contributions) and Spouses IRA rollovers at death.
- Qualified Plan Benefits-Spousal protection under ERISA.
- Federal Income Tax- Joint tax returns must be filed –couples no longer have to file two returns instead of one and that can save tax preparation fees.
- Federal Estate and Gift Tax Tax free lifetime transfers to the spouse.
Here are some essential planning tips for tax and estates to protect assets of same-sex married couples:
- Update all key legal documents to identify as a “spouse”.
- Check beneficiary forms on all plans and IRAs – primary and contingent beneficiaries.
- Check beneficiary forms for employer benefits, life insurance, annuities.
- Update wills and trusts – check provisions for children – guardians.
- Have proper documents for end of life decisions.
- - Living Wills and Health Care Proxies.
- Provides access to personal health information.
- Powers of Attorney should be updated.
For more clarity on this tax Issue or general information on the Tax code email me at firstname.lastname@example.org or call us 1-877-714-2362.