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The Law Office of Jane Frankel Sims
YOUR Estate Matters
Third Quarter
Edition 2
Welcome to the third quarter edition of our newsletter!

This issue contains updates about the firm in the news and in the community, discusses the effect of the United States v. Windsor Supreme Court decision overturning DOMA, introduces our new team member, and more...

If you filed an extension for your 2012 Federal Gift Tax return, your return is due to the IRS by October 15, 2013.

The Law Office of Jane Sims blogs regularly on topics related to estate planning, trusts and estate administration.  Our previous blogs can be found at www.janesimslaw.com/blog.
Last month, the Supreme Court ruled in United States v. Windsor that
1 U.S.C. 7, also known as Section 3 of the Defense of Marriage Act ("DOMA"), is unconstitutional because it violates the due process protections of the Fifth Amendment of the U.S. Constitution, the concept of equal protection as applied to the federal government and principles of Federalism.  


 The text of Section 3 of DOMA reads:


In determining the meaning of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States, the word "marriage" means only a legal union between one man and one woman as husband and wife, and the word "spouse" refers only to a person of the opposite sex who is a husband or a wife.


The practical result of United States v. Windsor is that, in states where marriages between same-sex couples are legal, the federal government can no longer deny federal benefits to any married couple.  Federal benefits include income tax, gift tax, estate tax, veterans' benefits, Social Security, Medicare, Medicaid and the Family Medical Leave Act, among others.


For the clients of the Law Office of Jane Frankel Sims, we are most concerned with updating you on the status of your tax benefits, since estate and gift taxes are two of our practice areas.  Also, our firm practices in three states that have recognized same-sex marriage at the state level, Maryland, D.C. and New York.  


1. Revisit your estate planning documents, especially if your state has a state-level estate tax, such as Maryland, D.C. and New York.  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.


2. Confer with your income tax professional.  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.


3. 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.  However, regulations have not yet been issued by the IRS to address this, so your employer may wish to wait for further guidance.  


4. If you filed gift tax returns recording gifts to your spouse in the past three years, contact the person who filed those returns for you and request that the returns be amended.  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.


5. Please be aware that you now can make unlimited gifts between spouses for federal gift tax purposes.  This means that if your same-sex spouse is on your employer-sponsored health insurance plan, the premium payments now fall under the unlimited gifts that you can give to your spouse.  


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.


The constitutionality of Section 2 may be open to challenge, but it underscores the uncertainty of having a same-sex marriage respected outside of the state that issued the marriage certificate.


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.  In fact, it is still not clear whether or not the federal government will recognize as married a couple who married in Maryland but live in Pennsylvania.  We encourage our same-sex married clients to consider the impact of a move to a state that does not recognize same-sex marriages.


If you have questions about how Windsor may affect your estate planning, please contact the Law Office of Jane Frankel Sims.




More information for federal workers can be found here:



The National Center for Lesbian Rights has also produced fact sheets about how Windsor affects various government programs:  


Megan Wilt Please help us welcome our new Law Clerk, Megan Wilt, to the Law Office of Jane Frankel Sims!  Megan is a 3rd year law student at the University of Baltimore School of Law.  She obtained her undergraduate degree in International Business and Japanese at Towson University in Towson, Maryland.  Megan loves spending time with her dog, Spencer Reid, and she expects to complete her law school studies in December, 2013.

Welcome Megan!
This year, two of our firm's attorneys, David R. Forrer and Laura Lynn Thomas, participated in the Maryland State Bar Association's Law Day.  On Law Day, volunteer attorneys deploy across the state to prepare Advance Medical Directives for senior citizens.  David assisted seniors in Baltimore County, and Laura assisted in Howard County.  We thank them both for their commitment to community service!
Through Lawyers.com, you can help other Baltimoreans find out about the great work we do at the Law Office of Jane Frankel Sims!  Follow this link
to let us know how our office is doing.  You can also rate our attorneys by clicking their names below:

Jane Frankel Sims
John C. Robinson
Laura Lynn Thomas
David R. Forrer
We thank you for your business and support for our firm. Feel free to call us at 410-828-7775 with any estate planning questions or concerns, and as always we are most grateful for your referrals. 


Thank you,
Jane's Jane

Jane Frankel Sims
Founder/Managing Attorney

The Law Office of Jane Frankel Sims


In This Issue
Reminders for our Clients
United States v. Windsor (DOMA case)
Firm News
Pro Bono
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