Spectre of Legal Polygamy In Canada Raises Tax, Retirement, Insurance Issues

With a constitutional challenge pending in Canada to British Columbia's anti-polygamy laws (see prior posting), an investment professional is already looking at a number of collateral legal issues that will arise if polygamy is legalized. Morningstar today carries an article by Steven G. Kelman suggesting that changes in pension, retirement plan and income tax laws will be needed. Among the issues that will need attention are whether more than one surviving spouse can receive the now tax-deferred rollover of spousal assets. Meanwhile private insurance companies will need to rethink the premiums and coverage of health insurance that includes spouses.