Rhode Island, Same Sex Divorce and Portability: Imperfect Together

more+
less-

Rhode Island, Same Sex Divorce and Portability: Imperfect Together

by James F. McDonough, Jr. on August 13, 2013

Rhode Island Governor Chafee issued an executive order directing the state to recognize same-sex marriages performed out-of-state. The executive order does not, however, permit same sex divorce. Society is in a state of limbo where executive orders can address some, but not all, of the issues.

How does one address the use of the Federal Estate Tax Exemption, currently

$5,250,000, for same-sex couples in states that do not recognize same-sex marriage? If A

and B marry in a state that permits same-sex marriages and then move to a state that does

not recognize same-sex marriage, are they married for state death tax purposes?

Typically, a couple must be married under state law before they are eligible for the

marital deduction. Whether they are married is of critical importance for federal estate tax

purposes where marital deduction, the $5,250,000 Exemption and the portability of the

Deceased Spouse Unused Exclusion Amount (“DSUEA”) are the pillars of estate

planning. Portability is where the surviving spouse adds the exemption of the first-to-die

to his or her own. In states that have an estate tax that follows federal law, there may be

new impediments that prevent consistency.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© James McDonough, Scarinci Hollenbeck | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×