How Married Gay Couples Can Benefit Most From Current Tax Law
Thanks to a recent U.S. Supreme Court ruling, gay couples married in a state that recognizes same-sex marriage can now take advantage of a fantastic tax break called portability, which means that these couples - who can transfer up to $5.25 million each without tax - can add their deceased spouse's remaining exemption to their own.
Portability allows couples to move up to $10.5 million from their estate tax-free. To trigger portability, a deceased spouse's executor:
· Is required to file an estate tax return within nine months of the deceased spouse's death or the surviving spouse loses portability rights (an extension of six months may be granted);
· Is required to transfer the remaining exclusion to the surviving spouse.
Current tax law also allows married same-sex couples to share their individual exclusion by "gift-splitting" to give more to any individual free of taxes - which will, of course, reduce the amount that is tax-free upon the death of the surviving spouse.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.