by John Darer CLU ChFC CSSC RSP CLTC
Same-sex couples, legally married in jurisdictions that permit same-sex marriage, will receive equitable income tax, gift tax and estate tax treatment. according to a joint ruling issued August 29, 2013.
The ruling provides certainty and clear, coherent tax filing guidance for all legally married same-sex couples in the USA, and access to benefits, responsibilities and protections under federal tax law.
More information Revenue Ruling 2013-17
IRS FAQ on Tax Treatment of Lawfully Married Same-Sex Couples
At least one company that issues structured settlement annuities, Berkshire Hathaway Life Insurance Company of Nebraska and First Berkshire Hathaway Life Insurance Company, which operates in New York, has indicated that they will issue joint life annuities to same sex couples that are lawfully married.
Companies that subscribe to services such as quote in the box and other proprietary quoting software distributed to structured settlement brokers may have to make software adjustments to accomodate same-sex joint life structured settlement quotes.
In an annuity context, Joint life means that annuity payments continue to a survivor for a contracted period, which can be a fixed period of years or even the lifetime of the survivor. Joint Life annuity payments can be at 100% of the level that payments were prior to the death of the first annunitant (joint and 100%), or they can be a smaller percentage (e.g. joint and 2/3).
Related reading
Does Gender Affect Structured Settlement Annuity Pricing? (4structures.com)
Last updated October 18, 2023
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