The Supreme Court’s recent ruling on DOMA opens new possibilities for using PlanLab with same sex couples who are legally married and living in a state that recognizes same sex marriage. The DOMA ruling will give these couples the same Federal benefits received by traditional married couples. The benefits affected in PlanLab include Social Security spousal and survivor benefits and federal estate tax calculations.
States that recognize same-sex marriage
If your clients are married and living in a state that recognizes same sex marriage as legal, you may simply check the Married box in Detailed Analysis or PlanFacts. PlanLab will then calculate Social Security benefits as married, with survivor and spousal benefits included. Any presentation with federal estate taxes displayed will use the unlimited Marital Deduction and the Deceased Spousal Unused Exclusion Amount for the estate tax calculations. State inheritance taxes if applicable will also reflect the married status.
States that recognize civil unions or domestic partnerships
For clients living in states that recognize civil unions or domestic partnerships but not same sex marriage, federal benefits for married person will not be available. In this case do not check Married.
Other states
If your clients live in a state that does not recognize same sex marriage, do not check the Married box. Estate Tax Analysis will not be available for non-married clients; however, Estate Tax Concepts could be used for a quick calculation of potential estate taxation issues.
PlanLab presentations and effects of DOMA ruling
Presentation | If clients are legally married in their residence state |
Estate Tax AnalysisWealth Distribution Analysis | To illustrate as married in Detailed Analysis check Married in Household Information. Note, you cannot change back to unmarried in Detailed Analysis.Both Social Security benefits and federal estate taxes will reflect married status. |
Quick ETA | Check Married to illustrate Federal estate tax benefits of unlimited marital deduction. Single (Married not checked) may be used to show potential problems if clients move to a state that does not recognize the marriage.Both Social Security benefits and federal estate taxes will reflect the appropriate marital status. |
Estate Tax Concepts | Check Married to illustrate Federal estate tax benefits of unlimited marital deduction. Single (Married not checked) may be used to show potential problems if clients move to a state that does not recognize the marriage. |
QPDAAnnuity Strategies | Check Married in household information section for Federal estate tax and IRD tax treatment for objectives that demonstrate wealth transfer. |
Financial Needs Analysis | Check Married in household information to illustrate Spousal and Survivor Social Security benefits. |
Life Goals | Check Married in household information to illustrate Spousal and Survivor Social Security benefits. |
Retirement Road Map | Check Married in household information to illustrate Spousal and Survivor Social Security benefits. |