DOMA Impact on Death Tax

Same sex couples may be under a false impression that they do not have to be concerned with death taxes anymore because of the recent Supreme Court decision, U.S. v. Windsor. The case has essentially equalized married  married homosexuals with heterosexuals. However, the Windsor case does not assist same sex couples with the state death tax. The death tax laws still vary from state to state. The IRS is drafting a post- DOMA document to assist people with the new rules and impact of the recent Supreme Court case.

The following 16 states recognize same sex marriage for spousal benefits: Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, Oregon, New Jersey, New York, Rhode Island, Vermont and Washington. In these states same sex couples are treated the same as heterosexual couples with regard to the state death tax. Despite those states, there are still five states that operate differently. In Kentucky, Nebraska, North Carolina, Pennsylvania and Tennessee upon the death of a partner in a same sex marriage, the death tax is triggered.  

See Ashlea Ebeling, The Same Sex State Death Tax Trap Post DOMA, Forbes, Jul. 1, 2013.