Now, in light of Windsor, high net worth married SSCs can enjoy the estate tax deferral that comes with the unlimited marital deduction.

On August 29, 2013, the U.S. Department of the Treasury issued its first major guidance on how the Windsor case impacts federal tax law.

In addition, we aim to serve our clients for years to come, and the new firm structure will allow Sims & Campbell to thrive even after Frank and I have retired.”, “Jane and I have always admired each other’s firms and recognized the need to provide even greater depth and breadth of focused expertise to help families amass and protect their wealth from generation to generation,” said Frank Campbell. Among the sweeping effects of the Windsor decision are its federal tax consequences. The Annapolis office is currently located at 716 Melvin Avenue, and is moving to 181 Truman Parkway in August, 2019. Beware: United States v. Windsor did not change Section 2 of DOMA, which reads: No State, territory, or possession of the United States, or Indian tribe, shall be required to give effect to any public act, record, or judicial proceeding of any other State, territory, possession, or tribe respecting a relationship between persons of the same sex that is treated as a marriage under the laws of such other State, territory, possession, or tribe, or a right or claim arising from such relationship. civil unions or registered domestic partnerships, Travelogue Part Two: Encounter with an “Engagement Employee”, Indiana Legislature Bans “Ban the Box” Ordinances, Court Extends Massachusetts Wage Act Coverage to Out-of-State Employees. The text of. Windsor may impact other aspects of married SSCs’ federal income tax liability. Amending previous year returns may result in a refund or it may result in additional tax. Accordingly, please do not send us any information about any matter that may involve you unless we have agreed that we will be your lawyers and represent your interests and you have received a letter from us to that effect (called an engagement letter). Syllabus . The National Center for Lesbian Rights has also produced fact sheets about how Windsor affects various government programs: http://www.nclrights.org/site/PageServer?pagename=DOMA_FAQ_2013. TOWSON, Md. Amending the returns to reflect that the gifts were made to a spouse, not an unrelated person, will preserve your lifetime gift and estate tax exemption for use upon your death. You can file amended income tax returns for the previous three (3) years if you and your income tax professional determine that you would have owed less money if you were treated as a married couple instead of two single persons. Alert your employer that they may not have to withhold federal income tax on health care premiums paid out of your paycheck for your spouse. More information for federal workers can be found here: http://www.chcoc.gov/transmittals/TransmittalDetails.aspx?TransmittalID=5700. All copies must include this copyright statement. The U.S. Department of Treasury and the IRS have clarified that married SSCs may (but are not obligated to) file amended returns for open tax years (usually the previous three years) if their married status would result in a refund.

United States v. Windsor as a landmark case outlined the federal definition of marriage as between members of the opposite sex, for purposes of tax benefits, as unconstitutional. Same-sex couples (“SSCs”) were awarded a major victory by the U.S. Supreme Court in 2013 when Section 3 of the Defense of Marriage Act (“DOMA”) was declared unconstitutional in the case of United States v. Does the employer have a position regarding the extension of benefits to same-sex couples, and does it wish to extend benefits beyond those required by law?

We encourage our same-sex married clients to consider the impact of a move to a state that does not recognize same-sex marriages.

Windsor represents a paradigm shift for married SSCs with respect to federal income and estate tax. The combined firm will be named Sims & Campbell and have offices in Towson, Md. Essentially, the IRS stated that any reference to “spouse” in the Internal Revenue Code (the “Code”) would include individuals married to persons of the same sex, so long as the couple is married under state law, and any reference to “marriage” in the Code would include a marriage between individuals of the same sex. Review how each plan defines “spouse” and whether same-sex spouses fall within the current definition. Therefore, if a same-sex couple marries in Maryland, New York, or D.C. and then moves to another state that does not recognize same-sex marriage, such as Virginia, Pennsylvania or New Jersey, the new state may not have to recognize the marriage. There are state and federal estate tax postponement strategies that you and your estate planning attorney can employ to reduce the estate tax burden upon the death of you and your spouse. For many years, the Defense of Marriage Act (DOMA) defined marriage under federal law as a legal union between one man and one woman. On August 29, 2013, the U.S. Department of the Treasury issued its first major guidance on how the Windsor case impacts federal tax law. Some artwork provided under license agreement. Further, married SSCs who file jointly (as do the vast majority of opposite-sex married couples) may also be subject to new tax brackets that will either increase their tax liability (the so-called “marriage penalty”) or reduce their tax liability (the so-called “marriage bonus”). The most recent statistics from the Government Accountability Office show more than 1,100 U.S. statutory provisions that factor marital status into the equation.

On October 18, 2012, the Second Circuit issued an opinion striking down the so-called "Defense of Marriage Act" in the ACLU and NYCLU's Windsor v. United States case. The Court held that this definition violated the Due Process Clause of the Fifth Amendment and put the nation one step closer to the national recognition of same-sex marriage.

For more information, visit www.simscampbell.law.

Revisit your estate planning documents, especially if your state has a state-level estate tax. ESTATE OF SPYER, ET AL.

Manage the risk of litigation through the use of thoughtful, honest communications with employees who inquire about benefits while the company is assessing its options. 12–307. Noting the traditional authority As a result, there are many estate-planning opportunities now available to high net worth married SSCs that were not previously available. No.

In Windsor, the Supreme Court held that Section 3 of DOMA was unconstitutional because it violated the constitutional principles of equal protection. Federal benefits include income tax, gift tax, estate tax, veterans’ benefits, Social Security, Medicare, Medicaid and the Family Medical Leave Act, among others. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT . In June 2013, however, in the case of United States v. Windsor, the Supreme Court of the United States declared this DOMA provision (known as “Section 3”) to be unconstitutional.

Please be aware that you now can make unlimited gifts between spouses for federal gift tax purposes.

Federal benefits include income tax, gift tax, estate tax, veterans’ benefits, Social Security, Medicare, Medicaid and the Family Medical Leave Act, among others. The Court held that Section 3 of the Defense of Marriage Act (DOMA), which denied federal recognition of same-sex marriages, was a violation of the Due Process Clause of the Fifth Amendment. However, the Indiana General Assembly recently passed a bill that prohibits local governments from adopting such ordinances in Indiana. (April 26,2019)  Frankel Sims Law and Holden & Campbell have jointly announced the merger of their firms to create a boutique Trusts & Estates law firm providing comprehensive services in the fields of Estate Planning, Estate Administration, Trust Administration and Charitable Giving.