On June 26, 2013, the U. S. Supreme Court ruled that same sex married couples in states that recognize their marriages must get the same federal benefits that opposite-sex couples receive.  This ruling benefits same sex couples that are legally married under applicable state laws for purposes of income taxes, tax free employee benefits, inherited retirement accounts and federal gift and estate taxes.  However, because it only affects same sex couples who are considered legally married under applicable state law, the decision may not have the expected immediate widespread impact for all same sex couples because the majority of states (including Pennsylvania) do not currently recognize same sex marriage.

In addition, some same sex couples who were legally married in a state that recognizes same sex marriage, now reside in states that do not recognize them. Their situation is uncertain until we receive guidance from the IRS and other federal agencies.

Same sex couples in Pennsylvania still need to address a number of concerns that require careful planning.  These include:

1. Who will be your financial agent if you are incapacitated?
2. Who will be your health care agent if you are incapacitated?
3. How will you pass your property to your same sex partner with a minimum state inheritance tax impact?

None of the above issues are resolved by the U.S. Supreme Court ruling as it pertains to Pennsylvania same sex couples.  They still have a compelling need for careful planning for incapacity and death. Keep in mind that Pennsylvania has a fifteen percent inheritance tax rate for property passing at death to an individual to whom the decedent was not legally married.

For more information and guidance contact Stacey Willits McConnell – Chair of Lamb McErlane’s Estate Planning and Trusts Department. 610.701.4431