Case Study

Estate Planning for a Same Sex Couple

A recently retired same sex couple wondered if they should get married, considering the 2013 changes in the Federal law (repeal of portions of DOMA).  While they were comfortable knowing they could retire, they were unsure of the impact of marriage on their financial situation. 

Goals

  • Get Married
  • Move to Delaware in 2-3 years
  • Buy a vacation property now and rent it
  • Sell their current rental property in Maryland as soon as possible
  • Establish an estate plan and create a prenuptial agreement

Consultation Process

After receiving the client as a referral from the local CPA, our firm helped the client transition into retirement.  When it was time to make decisions regarding marriage and estate planning, we referred our clients to an estate planning attorney who works with same sex couples and also has expertise in 1031 exchanges.

Solution

The clients were married in December 2013, and have finalized their estate plan.  In 2014, their goal is to work with their CPA to review their tax situation as well as execute the 1031 exchange on the rental property.  In addition, the marriage provides additional financial stability for the lower wage earner in the marriage, which delivers peace of mind to both partners.