Back on April 18 I wrote about a bill that was passed by the Maryland General Assembly that would exempt the transfer of a primary residence owned in joint tenancy by Maryland domestic partners from the Maryland inheritance tax. Well, Governor Martin O'Malley has signed the bill into law and it became effective July 1, 2009.
Unfortunately, this new law only applies to the transfer of a primary residence to the surviving domestic partner that is owned as joint tenants - all other transfers of property to the surviving partner will be subject to the Maryland inheritance tax.
Married in Canada in 2004. Own house with domestic same-sex partner JTROS. Must we file anything to be eligible for the tax break or is the marriage, title to property and will sufficient?
Hi Pamela, in reading the statute which allows for this specific inheritance tax exemption, it states the following:
“If the domestic partner of a decedent provides evidence of the domestic partnership as described in § 6-101(b) of the Health – General Article, the inheritance tax does not apply to the receipt of an interest in a joint primary residence that:
(i) at the time of death was held in joint tenancy by the decedent and the domestic partner; and
(ii) passes from the decedent to or for the use of the domestic partner. ”
So the evidence described in § 6-101(b) of the Health – General Article is as follows:
“An individual who asserts a domestic partnership under subsection (a) of this section may be required to provide:
(1) An affidavit signed under penalty of perjury by two individuals stating that they have established a domestic partnership; and
(2) Proof of any two of the following documents:
(i) Joint liability of the individuals for a mortgage, lease, or loan;
(ii) The designation of one of the individuals as the primary beneficiary under a life insurance policy on the life of the other individual or under a retirement plan of the other individual;
(iii) The designation of one of the individuals as the primary beneficiary of the will of the other individual;
(iv) A durable power of attorney for health care or financial management granted by one of the individuals to the other individual;
(v) Joint ownership or lease by the individuals of a motor vehicle;
(vi) A joint checking account, joint investments, or a joint credit account;
(vii) A joint renter’s or homeowner’s insurance policy;
(viii) Coverage on a health insurance policy;
(ix) Joint responsibility for child care, such as guardianship or school documents; or
(x) A relationship or cohabitation contract.”
Sincerely,
Julie Ann Garber, Esq.
Your Guide to Wills & Estate Planning
email: wills.guide@about.com
http://wills.about.com
The information contained in this comment is not legal advice or tax advice. For legal advice please consult with an attorney and for tax advice please consult with an accountant.