Yesterday’s Supreme Court ruling affects legally married same sex couples living in California, Connecticut, Delaware, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Rhode Island, Vermont, and Washington, the District of Columbia and five Native American tribes.
The ruling affects the following common financial planning issues:
1) transfer of property to a spouse during one’s lifetime is now allowed without owing federal gift tax.
2) ability to receive property from a deceased spouse without paying federal estate tax.
3) can now file federal taxes jointly.
4) eligible to receive a spouse’s Social Security benefits.
5) now eligible to receive pension survivorship benefits.