Thursday August 14, 2008 - Same Sex Marriages: Estate Tax Planning

[0:00] ..." Gay marriages that's who we're talking about here on WBZ news radio 1030 with certified financial planner -- this week. And today we're focusing"...

[0:21] ..." to really plan in the same holds for same sex couples. Now same sex marriage is only legal in Massachusetts and California and the federal government only recognizes that marriage between a man and a woman. So when you're doing your state planning you need to do double planning to accommodate both the federal and the Massachusetts state tax laws them -- and of course. I -- my new skeptically everything to a spouse free of federal Massachusetts state taxes. But we get hung up on the definition of spouse federally as someone of the opposite sex. From Massachusetts sister same sex partner -- Now federal law allows each of us an exemption that we can give -- two million dollars this year that's an increase to three point"...

[1:51] ..." dollars -- it is no merit of the deduction. But he'll be real estate tax because -- fall below the current exemption. Massachusetts will recognize -- also benefit of marital deduction -- no taxes do. Now that's"...

[0:00]" Gay marriages that's who we're talking about here on WBZ news radio 1030 with certified financial planner -- this week. And today we're focusing on another."

[0:08]" Touchy topic and that's a state tax planning for gay couples you know Anthony the stream of two individuals hand in hand. Into the sunset not realistic and to get the golden sunset everywhere needs to really plan in the same holds for same sex couples. Now same sex marriage is only legal in Massachusetts and California and the federal government only recognizes that marriage between a man and a woman. So when you're doing your state planning you need to do double planning to accommodate both the federal and the Massachusetts state tax laws them -- and of course. I -- my new skeptically everything to a spouse free of federal Massachusetts state taxes. But we get hung up on the definition of spouse federally as someone of the opposite sex. From Massachusetts sister same sex partner -- Now federal law allows each of us an exemption that we can give -- two million dollars this year that's an increase to three point five million next year. And then in 2010. No federal estate tax. And then in -- to 2002011. To one million exemption. I'm not going to go into why that is but let's move on an outlet and I can guarantee you before 2000 and change it'll change -- So -- dollars you know and this affects probably about 10% of our listeners have you got two dollars. You know you're going to have to do some fancy tax planning. Massachusetts. -- head was spinning before business. The exemption up from Massachusetts is no longer the same as the federal you can only give away one million dollars in Massachusetts without incurring estate taxes. So let let me do what if scenario ultimately what is -- okay. You do get married and you do your state planning your everything your spouse in your Wilton. Now let's just say you get two million dollars -- it is no merit of the deduction. But he'll be real estate tax because -- fall below the current exemption. Massachusetts will recognize -- also benefit of marital deduction -- no taxes do. Now that's sounds great but in the second. Dies the survivor. There's going to be taxes do. So you pay the tax men but somewhere belatedly he has somewhere. So you got an estate over two million dollars over one million dollars from Massachusetts go to estate tax attorney. And gets some help on -- quickly and okay check the website WBZ two and thirty dot com more tomorrow here on WBZ news radio -- and there."