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Showing posts with label Social Security. Show all posts
Showing posts with label Social Security. Show all posts
Monday, December 16, 2013
Social Security To Pay Survivor Benefits To Gay Widows And Widowers
Posted in: 
Saturday, August 10, 2013
Social Security Administration and Same-Sex Marriage
Now known as a "Windsor Same Sex Marriage Claim" in the SSA's Program Operations Manual System, a same-sex couple may apply for social security benefits so long as:
- the applicant couple were married in a state that permits same-sex marriage; and
- the couple is domiciled at the time of the application for benefits in a state recognizing same-sex marriage.
In limbo with the SSA; that's not where you want to be if you've worked for, and are entitled to benefits. We here at the Law Blogger agree with Stanford Law Fellow William Baude's take on the issue, for the Volokh Conspiracy blog:
But the [SSA's policy] decision has the unfortunate effect of ensuring that same-sex couples will be married for some federal purposes and not for others. My view is that one of the important attributes of marriage as a legal matter is the way it functions as a cross-cutting and trans-substantive. [sic] So this is not a good thing. This should be a reminder that Congress really ought to step up and enact a choice of law rule, but I am not holding my breath. [Brackets supplied.]Baude suggests another class of applicants potentially entitled to benefits; civil unions. Lots of litigation will go down before the line eventually gets drawn. And if the federal coffers are not to be depleted, there must be a line somewhere.
Until then, we will be looking for the significant cases to emerge from the federal courts that navigate the tricky intersection of same-sex marriages and social security.
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info@clarkstonlegal.com
Friday, November 30, 2012
Frozen Sperm and the Social Security Administration
In this case, the procedure is as unusual as the fact pattern. The case comes to the Supreme Court on a certified question from the United States District Court for the Western District of Michigan. The case took more than five-years to get to the state court.
The case arose when the Mattisons, a married couple, arranged for Mr. Mattison to bank his frozen sperm in order to preserve it for later impregnation and prior to receiving chemotherapy to treat his cancer. The couple desired to preserve their ability to have children but were worried that Mr. Mattison's chemotherapy would damage his sperm, complicating their efforts to conceive a child.
After actively preparing his wife to receive his frozen sperm, Mr. Mattison died back in 2001. Ms. Mattison subsequently was implanted with her deceased husband's frozen sperm, conceived and gave birth to twins.
Ms. Mattison's application on behalf of the twins for survivor benefits was denied by the Social Security Administration. The SSA took the position that the children did not survive their wage-earner father under the definition of the terms "child" and "survive" in Michigan's probate code; the Estates and Protected Individuals Code.
In listening to oral arguments in the case, it did not appear that the High Court Justices, particularly Justices Robert Young and Stephen Markman, were very receptive to Ms. Mattison's position. Justice Young exhibited palpable irritation that the certified question, which appears to have no statutory support in EPIC, took so long to make it's way to the Michigan Supreme Court.
Although many other states are considering similar questions, we here at the Law Blogger predict that our Supreme Court will decide in this case that the Mattison twins are not entitled to receive the survivor benefits from their deceased wage-earning father on the basis that they simply did not exist at the time of their father's death.
Toward the end of the very brief oral arguments, one of the Justices asked Ms. Mattison's attorney whether he had considered raising the frozen sperm survivorship issue with the Michigan Legislature. We agree with Justice Young when, during oral argument, he wondered aloud whether the certification of this particular question was essentially a violation of the constitutional separation of powers.
Unfortunately for the Mattisons, Courts cannot legislate from the bench.
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info@clarkstonlegal.com
Thursday, August 30, 2012
Ten Tips for Social Security Planning
Here are some things to keep in mind as you approach the age where certain decisions need to be made; and elections need to be taken relative to the mighty Social Security Administration.
Many folks are faced with a bewildering array of options regarding their social security benefit. When should you start taking the benefit? At the earliest possible age of 62; or should you wait [can you afford to wait] until age 70?
These tips are merely general principles, not intended as specific legal advice. Here are some things to consider:
1. Spousal Benefits. If you are married, and at full retirement age [66], you and your spouse, but not both, can elect to receive a spousal benefit while deferring on your retirement benefits, thereby enabling those retirement benefits to grow. If you are the low-earning spouse, however, it could make more sense to take your benefit at the earlier age of 62, then switch to your [presumably higher] spousal benefit upon reaching full retirement age.
In general, there is no advantage to waiting to start collecting either spousal benefits or survivor benefits after you reach your full retirement age.
2. "Start Stop Start" Strategy. Complicated, but worth it, this strategy involves electing to take your social security benefit at an early age, say 62, then suspending the benefit at the full retirement age of 66, if you can afford to do so. Then, at age 70, you start the benefits back up, taking advantage of a much higher [over 30% higher] monthly benefit checks for the balance of your life.
3. One-Year Repay Option. This one is interesting. If you elect to begin taking your benefit, but later decide it was not the right move, you have one year to pay back all the benefits you received. Then you can re-apply for [higher] benefits at a later point in time.
4. Working Into Your 60s. If you are blessed with good health, and are fortunate enough to be in a profession or job you can handle deep into your 60s, the result will be a significantly higher social security benefit when you finally do hang up the cleats. This benefit will also accrue to any spousal and child benefits; so your family will benefit as well. If you opt to receive benefits at an early age [62], you could be locking in on a permanently lower benefit.
5. Divorced? Depending on the length of your marriage, you or your ex-spouse may be able to file for benefits based on each other's work histories. This is beneficial for the divorcee that was married to a high earner.
6. Federal Income Tax Exposure. When it comes to calculating your income for tax purposes, disbursements from a Roth IRA are not counted [because you already paid the taxes], but withdraws from a regular IRA, 401(k) or 403(b) are included as income. Therefore, it may make sense to stage your withdraws on these accounts, taking disbursements from the tax deferred accounts prior to your social security election. Also, as a general principle, it would make sense to deplete your tax-deferred accounts first.
7. Survivor Benefit Election. Widowed? Some folks will want to elect to receive their survivor benefits at age 60, and to take their retirement benefit after full retirement; others will benefit by electing to take their retirement benefit at age 62, and deferring the survivor benefit until full retirement age. The difference depends on individual circumstances and the projected benefits. A careful calculation is needed here and a professional should be consulted in most cases. The differences in strategy could be significant.
8. Beware of the SSA's Benefit Calculator. The SSA's on-line benefit calculator does not adequately handle spousal, divorcee, child, mother, father, widow or widower benefits. Because the benefits calculator does not factor-in wage growth or inflation, a projected benefit output for a younger worker performing a calculation will be distorted; the worker's actual benefit could be much less than anticipated. The best practice is not to rely on these calculations as accurate benchmarks.
9. Children's Survivor Benefits. Provided they are under the age of 18 [age 19 if still in high school], your children can receive a survivor benefit from your deceased spouse, or ex-spouse.
10. Enjoy Your Retirement! This tip is the most important in this post. You have worked your entire life; now it's time to take your foot off the gas and cost a bit; take a look at the scenery. By all means take care of your family, but remember that you cannot take it with you. So be sure to spend at least a portion of your retirement on yourself.
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