Share

IL Estate Planning Blog

Tuesday, October 18, 2016

Planning for Same-Sex Couples

Excerpts taken from WealthCounsel Quarterly Volume 10 Issue 2 by Scott Squillace, JD

 

WHETHER TO WED?

Putting aside love, commitment, societal, family and religious issues - what are the legal and tax issues a same-sex couple should consider in making the decision to marry?

 

PROS TO MARRIAGE:

1. Taxes

  • Ability to file jointly on income tax (but watch community property states and the "marriage penalty")
  • Deductibility of alimony from income in case of divorce
  • Ability to transfer money and property to spouse during life and after death without tax consequences
  • Possible tax refunds for past returns and for employer related health benefits
  • Health insurance benefits no longer imputed income
  • Deceased Spousal Unused Exclusion (DSUE) raises the amount excluded from estate tax of a married couple's estate to $10.9 million, as opposed to 5.45 million for an individual

2. Real Estate

  • Capital gains from the sale of a primary residence exclusion amount increased from $250k to $500k for married couple
  • Garn St. Germain Act - Due on Sale Clause not triggered by funding primary or secondary residence into a revocable living trust

3. Social security, including retirement, disability and SSDI

4. Medicaid planning - But maybe other strategies available?

5. Private pension/retirement plans

6. Federal employee benefits

7. Military personnel & veteran's benefits

8. Immigration - Green cards now available for non-citizen same-sex married couples

9. Bankruptcy - Spouses can now file jointly, instead of separately, to save on filing fees

10. Copyright revision

 

CONS TO MARRIAGE:

1. Income Tax (possible "marriage penalty" for higher income earners)

2. Limit on home mortgage interest deduction (up to $1 million mortgage - single or couple)

3. Medicaid (spousal impoverishment)

4. Family Attribution Rules - IRC

5. Bankruptcy

  • Married couples can become co-obligors of his or her spouse's debts

6. Student Loan Eligibility

7. Family attribution for political contributions

8. Family attribution for ethics rules for political office and governmental appointments

 


Archived Posts

2019
2018
2017
2016
2015
2014
2012
2011
2010


With two offices in Oak Lawn and Oak Brook, Stephen M. Sutera assists clients throughout Cook County, DuPage County and Will County IL including Chicago, Hometown, Barrington, Burbank, Burr Ridge, Chicago Ridge, Darien, Downers Grove, Evergreen Park, Geneva, Worth, Bridgeview, Palos Park, Palos Hills, Palos Heights, Hickory Hills, Midlothian, Willow Springs, Oak Forest, Orland Park, La Grange, Brookfield, Berwyn, Tinley Park, Hinsdale, Villa Park, Clarendon Hills, Westchester, Westmont, Lombard, Elmhurst, Western Springs, Berkeley, Downers Grove, Fox Valley, Glen Ellyn, Willowbrook, Aurora, Addison, Lisle, Forest Park, Bensenville, Wheaton, River Forest, Itasca, Shorewood, Frankfort, Mokena, Naperville, Crest Hill, Homer Glen, New Lenox, Bollingbrook, Schaumburg, Channahon and Woodridge.



© 2019 Law Offices of Stephen Sutera | Disclaimer
4927 W. 95th Street, Oak Lawn, IL 60453
| Phone: 708-857-7255
2021 Midwest Road, Oak Brook, IL 60523
| Phone: 630-396-6800 | 708-857-7255
250 Monroe Avenue Northwest, #400, Grand Rapids, MI 49503
| Phone: 616-717-5752 | 708-857-7255

Estate Planning | Advanced Estate Planning | Asset Protection | Pet Trusts | Special Needs Planning | Probate / Estate Administration | Elder Law | Business Law | | DocuBank | Staff Certifications | Legacy Plan | Healthcare Guides | Our Unique Process

FacebookLinked-In Company

Attorney Website Design by
Zola Creative