Cases affect planning for gays

JUN 23, 2013
The Supreme Court could throw out the federal law that bans gay marriage as early as today in one of two decisions due from the nation's top court in the coming days involving same-sex marriage. The 1996 federal Defense of Marriage Act, which states that a marriage must be between one man and one woman, makes it impossible for same-sex couples who were legally married by their state to receive federal income and estate tax deductions that married couples enjoy, as well as other benefits, such as Social Security spousal and survivor benefits.

PROPOSITION 8

The second case revolves around the question of whether a state has the authority to allow or ban gay marriage, centering on California's Proposition 8 law: a voter initiative that requires that a marriage be between a man and a woman. Supporters of gay rights had hoped this California case would result in the outlawing of state provisions banning same-sex marriage, but most legal experts believe that the justices are not ready to take the issue that far. If the court rules in favor of same-sex marriage, financial planning options could change for same-sex couples, and most legal and financial experts think the decisions will provide about 1,100 federal benefits just for those who live in the 12 states and Washington, D.C., where gay marriage is legal. The Census Bureau estimated that there were 646,000 same-sex-couple households across the country in 2010. “For couples who got married in one of the 12 states [that allow same-sex marriage] or D.C., they could now do estate planning like heterosexual couples,” said Janis Cowhey McDonagh, an estate and trust specialist, and East Coast leader of the lesbian, gay, bisexual and transgender practice for Marcum LLP. Gay marriage is legal in Connecticut, Delaware, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Rhode Island, Vermont, Washington and Washington, D.C. Most other states prohibit it in their constitution or have passed laws against it. [email protected] Twitter: @skinnerliz

Latest News

The Stacking Strategy: How Intelligent Allocation Can Create Better Tax Outcomes
The Stacking Strategy: How Intelligent Allocation Can Create Better Tax Outcomes

What if one investment decision could create tax-saving opportunities across your entire portfolio? Chris Vizzi shares how the Stacking Strategy helps investors align tax planning, portfolio construction, and wealth preservation to maximize long-term outcomes while keeping more of what they earn.

AI could drag down RIA valuations, warns Alaris CEO Allen Darby
AI could drag down RIA valuations, warns Alaris CEO Allen Darby

Buyers spending on AI may treat less efficient sellers as overstaffed and price the cost of rightsizing into lower offers

Former Western Asset Management star bond manager fined $3 million
Former Western Asset Management star bond manager fined $3 million

Kenneth Leech pleaded guilty in June to one obstruction charge, and could face six to 12 months ⁠in ​prison.

Morningstar rolls out agentic AI platform built on its research
Morningstar rolls out agentic AI platform built on its research

Launch of Direct AI follows a model portfolio tie-up with Envestnet as advisors juggle AI adoption and private-market due diligence.

Advisor moves: Osaic draws Equitable advisor overseeing $245 million in assets
Advisor moves: Osaic draws Equitable advisor overseeing $245 million in assets

Meanwhile, Cetera's streak of Commonwealth recruitment continues in Washington, and an LPL advisor hops over to Raymond James in Maine.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor