Tuesday, January 21, 2014
Suppose a widower in Massachusetts wants to give $20 million to his 20-year-old unmarried grandson, but also wants to avoid the gift tax, generation-skipping tax, and estate tax.
Perhaps he could just marry his grandson and then give his spouse/grandson a tax-free spousal gift of $20 million. A few years later, he could then get a no-fault divorce.
Under current Massachusetts law, a man is prohibited from marrying his granddaughter, but the law makes no mention of grandsons. Is this scenario possible in Massachusetts where same-sex marriage is legal and recognized by the federal government?
See Philip Greenspun, Grandfather Could Marry Grandson to Avoid Estate and Generation Skipping Tax?, Philip Greenspun’s Weblog, Jan. 20, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.