As mentioned in the previous blog I am a trustee in a will, actually several wills. One of my friends is joined to his new partner by a domestic partner agreement. In California, a domestic partner agreement has all the legal meaning of a marriage.
So what happens to Federal inheritance tax? When one domestic partner dies the property would ordinarily be transferred, tax free, to the surviving spouse. If the person is single and has enough property, it would trigger Federal inheritance tax. So how is this treated when a California domestic partnership agreement exists?
Does the Federal government have to recognize California domestic partnerships and let the money move to the partner without paying inheritance tax?