March 18, 2014
When the Supreme Court overturned section three of the Defense of Marriage Act (DOMA) in 2013, it changed the estate planning landscape for same-sex couples.
From a financial planning standpoint, the ruling
means same-sex married couples may be able to take advantage of tax benefits that heterosexual couples enjoy, including gift and estate tax exemptions, joint filing status, personal and dependency exemptions, employee benefits, IRA contributions and many others.
“This is an enormous positive change for married same-sex couples,” says Louise Hildebrand, Regional Trust Manager for The Private Client Reserve.
However, there are still financial and legal issues with which couples need to contend. As of March 2014, only 17 states and the District of Columbia have legalized same-sex marriage, and each has different tax rules and regulations that can potentially impact same-sex couples and their children.