Despite R.I. civil-union law, gay spouses excluded from tax exemption

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http://www.projo.com/news/stategovernment/content/CIVIL_UNIONS_ISSUES_10-10-11_U9QQ4RJ_v57.60a62.html

Susan Gershkoff, a Lincoln lawyer specializing in estate planning, thought that the state’s recently passed civil-union law would allow her gay clients to take advantage of a significant benefit that married couples receive: an exemption from the Rhode Island estate tax.

She was wrong.

The reason is that the tax — currently applicable when an estate exceeds $859,350, but not when an estate is passed on to a surviving spouse –– is closely tied to federal law.

And federal law is subject to the Defense of Marriage Act, in which the federal government defines marriage as a legal union between one man and one woman.

As David Sullivan, state tax administrator, explains: “The starting point for personal income tax is Federal Adjusted Gross Income. … he calculation of these items are based on federal tax laws.”

Gershkoff was shocked. “When I read the civil-union statute over the summer, obviously, this unlimited marital deduction would extend to civilly unionized couples,” she said.

Gay-rights advocates are similarly surprised.