Jim Nabors saved $4.8 million in taxes by marrying his husband
PITTSBURGH, Dec. 11, 2017 /PRNewswire-iReach/ -- On November 30, 2017, at the age of 87, Jim Nabors, perhaps most famous for his role as Gomer Pyle, died. Jim and his husband, Stan Cadwallader, lived in Hawaii. They married in 2013 one month after same-sex marriages became legal in Washington State, but they had been partners for 38 years.
It is quite eye-opening to look at the tax consequences of their decision to get married. Mr. Nabors died with a $13M estate. Though the terms of his will are not public, at least not yet, for the sake of argument, let's assume he left his estate to his husband.
Because of the marriage, no Federal or Hawaii estate or inheritance taxes are due at death because of the unlimited marital deduction.
If Jim and Stan had remained unmarried partners, Jim's estate would have had to pay just over $3,000,000 in federal estate taxes and over $1,800,000 in Hawaii inheritance taxes for a total of $4,800,000 in taxes. That doesn't even include the income taxes that will be saved because of the longer "stretch" a spouse receives on an inherited IRA or retirement plan.
The moral of the story is that for many life-long partners, gay or straight: Get Married for the Money. Of course, the decision to marry hinges on more than whether marriage is a financially strategic move. But, if you are simply avoiding the formalities, it might make sense to think about the long-term tax consequences on your financial security—for both you and your partner. Furthermore, marriage is usually a big plus for purposes of Social Security, especially if one partner has a much stronger earnings record than the other partner.
For more information visit http://www.outestateplanning.com.To schedule an interview with Jim Lange, please call his office at 412-521-2732 or email [email protected].
James Lange, CPA/Attorney of Lange Financial Group, LLC, is the author of several books on retirement and estate planning, including Live Gay, Retire Rich. His books on retirement strategies have been endorsed by Charles Schwab, Larry King, Jane Bryant Quinn, Ed Slott, and many more. He hosts a weekly financial show on KQV News Radio in Pittsburgh. PA.
Media Contact: Eric Emerson, Lange Accounting Group, LLC, 412-521-2732, [email protected]
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SOURCE Lange Accounting Group
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