The Financial Benefits of Marriage

12:58 pm Uncategorized

Most people know that married couples enjoy greater tax benefits just by virtue of the fact they are married.  But are there other financial benefits to being married?  The answer is yes.

A heftier IRA. To be eligible to contribute to an IRA, you must have taxable income.  However, if you are married and do not have taxable income, the spouse who does work is allowed to make an IRA contribution on behalf of his or her nonworking spouse.

Healthcare coverage. Having one spouse covered by the other spouse’s employee health plan can save thousands of dollars every year.

Social Security benefits. A husband or wife is entitled to one-half of each other’s Social Security benefits as well as to death benefits.

Automatic inheritance rights. If a spouse dies without a will in California, the surviving spouse has a legal right to all their community property as well as a portion of any separate property, depending upon the number and relationship of additional survivors.

No estate tax. You can leave an unlimited amount to a spouse without generating any estate tax.

No gift tax. Current law allows exempts spouses from having to pay any taxes on gifts to each other.

Special trusts. There are life estate trusts that are restricted to married couples, including marital deduction trusts, QTIP trusts and qualified domestic trusts (QDOT).

Asset protection is important whether you are married or single.  To ensure that your assets are fully protected now and in the future, consult with a Newport Beach asset protection attorney.

Help is available to you by contacting your Southern California financial planning experts today.

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