The DOMA case hinged on the issue of federal estate taxes. It involved New York resident Edie Windsor, who sued the federal government over a $363,000 estate-tax bill imposed after her spouse died. Other married couples aren’t liable for estate taxes until the second spouse dies.
Review Gifts
Those who paid levies when their spouse died or made gifts to a partner should review their returns -- even beyond the three-year statute of limitations, said Seaman, whose clients usually have at least $25 million in net worth. The potential refund may be big enough to be worth making a claim, he said.
Married gay couples have started to combine their property, cash and investments even while waiting on IRS guidance before amending or filing federal tax returns, said Alexander Popovich, a wealth adviser in the private bank unit of New York-based JPMorgan Chase & Co.
Some have shifted to joint checking and brokerage accounts or re-titled real estate, he said. Before the court’s decision, couples were advised to keep assets separate because transfers between them could be subject to gift taxes, unlike for opposite-sex spouses.
In states that recognize gay marriage the implications of the court’s decision are clearer, Popovich said. It’s a good time to review the beneficiaries of accounts, titles on property, and clauses in wills or trusts, he said.
“Make sure what you’ve done still makes sense,” he said.