Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
DOMA Ruling May Have Estate Tax Planning Implications
Author: Scarinci Hollenbeck, LLC
Date: July 12, 2013
Key Contacts
Back
The U.S. Supreme Court’s landmark ruling that the Defense Against Marriage Act (DOMA) is unconstitutional will have far-reaching benefits that change the paradigm of health benefits enrollment, retirement benefits, and tax planning. Regarding the latter, same-sex married couples may see sweeping changes to their estate tax planning and gift tax rules.
Under current tax rules, individuals can exempt $5.25 million of their estates from taxes, and may gift up to $14,000 in tax free income to as many people as they can afford for the 2013 year. These amounts double for married couples filing jointly. According to the previous law, same-sex couples were prohibited from utilizing the estate tax law to pass assets to spouses or make larger gifts to beneficiaries by filing jointly with a spouse. However, couples who live in states that recognize same-sex marriage will now have the same benefits as heterosexual married couples and may share assets without being subject to gift taxes. As a result, this may give them more flexibility when it comes to estate and gift tax planning.
The changes may also play a role in succession planning, particularly if same-sex married couples choose to pass assets, business interests and property to beneficiaries. Previous tax law would have prevented same-sex couples’ marital status from being recognized by the federal government. Therefore, couples would have been limited to gifting $14,000 in gifts and the $5.25 million estate tax exemption, rather than combining these amounts by filing jointly and passing more on to heirs.
As the ruling is still new and various parties – including employers and benefit providers – attempt to determine how the laws will apply to them, working with a legal professional may help couples navigate the law and make the most informed decisions to plan their estates effectively.
- Practices: Sophisticated Estate Planning & Wealth Preservation, Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.