Wills, Trusts & Estates Prof Blog

Daughter and Husband Fight During Zsa Zsa Gabor’s Final Days

Actress Zsa Zsa Gabor has been admitted into hospitals numerous times since last summer and recently was in a coma. As the actress struggles during her final days, Gabor’s only daughter and husband of twenty-five years have been continuously fighting.

Francesca Hilton, Gabor’s daughter, claims that Frederic Prinz Von Anhalt (Gabor’s current and ninth husband) will not speak to her or allow her to visit her mother. Von Anhalt maintains that he is taking impeccable care of the ailing actress and claims that Hilton is only after her mother’s life insurance.

Both individuals have persuaded Gabor to rewrite her will without telling the other party. Recently, Von Anhalt put Gabor’s house on the market for $15 million and auctioned off some of Gabor’s items. In 2005, Hilton and Von Anhalt fought in court over Gabor’s house.

Sadly, when distrust exists between a child and new spouse, this type of feud often follows the incapacitation of the parent/spouse. Even when an effective power of attorney is in place, the other party can, and often will, ask a judge to impose a guardianship to protect the parent/spouse. Seeking the advice of an experienced guardianship attorney can sometimes help conflicting parties resolve these conflicts outside of a courtroom.

See Danielle and Andy Mayoras, Family of Zsa Zsa Gabor Feuds In Actress' Final Days, Financial Planning, Jun. 27, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.

Most Common Malpractice Risks and Ways to Avoid Them

The most common malpractice error that attorneys commit is a failure to know or apply substantive law. However, an attorney's failure to know or apply substantive law does not account for the majority of malpractice claims. In fact, no one claim has a majority over another.

Substantive errors account for over forty-six percent of reported malpractice claims. These claims include failing to know or properly apply substantive law, failing to know or ascertain deadlines, and inadequately investigating or discovering facts. To help avoid these claims, it is important for attorneys to attend continuing legal education courses, especially when practicing outside of their usual practice areas. It is alwo important for attorneys to know their limits. For example, as I previously blogged, though an estate planning attorney may have a basic understanding of asset protection techniques, it does not qualify that attorney as an expert in asset protection.

Administrative errors make up over twenty-eight percent of reported malpractice claims. These errors include clerical and delegation errors, tickler system errors, procrastination, calendar errors, and document errors. These claims are likely the easiest to prevent as long as the attorney maintains good management skills, properly uses a tickler system, ensures that delegated work is done correctly, and keeps an updated calendar.

Client-relation errors make up over twelve percent of reported malpractice claims. These claims include failing to follow a client’s instructions, failing to obtain a client's consent, failing to keep a client informed, and providing poor communications with the client. The best way to reduce the risk of client-relation claims is to continuously communicate with clients, maintain documents that detail instructions and advice given to the client, and creatie confirmations that state what work was completed.

For more information on Malpractice Risks, see Daniel E. Pinnington, Are You At Risk? The Biggest Malpractice Claim Risks and How to Avoid Them, 36 ABA Law Practice 4 (July/August 2010).

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.

American Student Writes Will in Kabul Hotel

Saiz Ahmed, an American Ph.D student studying in Kabul, spent hours huddled in his fourth-floor hotel room at the Hotel Inter-Continental while the hotel was under attack. At one point during the almost six hour ordeal, Ahmed decided to write his last will and testament.

Ahmed later recalled, “I’m sure none of us thought we were going to make it. I wrote my will—just in case.” Following Islamic law, Ahmed wrote down the charities he wished to donate to, and then placed his will in his pocket.

After spending hours in total darkness, Ahmed and the other guests were eventually rescued and safely removed from the hotel.

Prone on the floor, U.S. guest wrote his will in Kabul hotel, CCN Wire, Jun. 29, 2011.

Rhode Island State Senate Approves Civil Unions

Yesterday eveningthe Rhode Island State Senate approved a bill allowing civil unions for gay couples. The bill was fiercely opposed by gay-rights advocates who claimed the legislation was discriminatory. Rhode Island’s House of Representatives already passed the bill, and the state’s governor, Lincoln D. Chafee, has said he will likely sign the bill though he believes its religious protections are overly broad. If Chafee signs the bill, Rhode Island will join Delaware, Hawaii, Illinois, and New Jersey as the fifth state to allow civil unions for gay couples.

Under the bill, gay couples will receive the rights and benefits provided in Rhode Island to married couples, such as hospital visitation, joint bank accounts, and property transfers. However, the bill gives religious organizations the authority to not recognize gay unions. Gay rights advocates claim that this broad religious discretion would, as an example, allow a Catholic hospital to disallow a gay partner from making medical decisions on behalf of his or her partner.

Ray Sullivan, the campaign director for Marriage Equality Rhode Island, has criticized the bill for its overly broad religious protections and has stated that the civil union establishes “a second-class citizenry.”

Marriage Equality Rhode Island had planned to remain neutral on the civil unions bill but came out against it after the “draconian” religious protections were added. Most civil union and gay marriage bills offer some religious protections — allowing a minister not to perform a gay marriage ceremony if he so chooses, for example — but the Rhode Island bill goes much further, Mr. Sullivan said.

Abby Goodnough, Rhode Island Lawmakers Approve Civil Unions, The New York Times, Jun. 29, 2011.

Illinois Man Kills Family, In Part, For $1 Million in Life Insurance

Christopher Vaughn allegedly shot and killed his wife and three children in the family’s SUV on June 14, 2007. A passerby called police after seeing Vaughn injured and on the side of the road. Police on the scene found Vaughn’s wife and children murdered and Vaughn shot in the leg. Vaughn claims that his wife became ill on the way to a water park, and when Vaughn got out of the car to fix the luggage rack, she shot him.

Though his defense team claims that Vaughn’s wife shot the three children before shooting herself, evidence made public by Will County, Illinois judge Daniel Rozak may tell a different story.

Among the evidence is an article allegedly found in Vaughn’s home about staging a crime scene to look like a suicide. Evidence also shows that the night before the murders, Vaughn took the murder weapon to a firing range. Additionally, an exotic dancer’s statements, a $1 million life insurance policy on Vaughn’s wife, and posts Vaughn made online contribute to the now public evidence. If Vaughn is convicted of killing his wife and children, the state’s slayer statute will prevent him from receiving any of the life insurance proceeds.

Vaughn’s trial is currently on hold, but is expected to begin soon.

See Christopher Vaughn Had Article On Staging Murder In His Home: Accused Of Killing Wife, 3 Kids, Huffington Post, Jun. 28, 2011.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.

Man Missing For Fourteen Years Found Buried in Backyard

Authorities found a North Carolina man who had been missing for fourteen years buried in his own backyard. The man’s wife passed away last September in her living room. The Huffington Post’s coverage of this bizarre story is below:

Missing Man Found Buried in Wife's Garden

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.

Carryover Basis vs. Estate Tax

Executors of estates of individuals who died in 2010 have a choice between two systems of estate taxation and asset basis determination. Executors can choose to use the current exclusion or to use the modified carryover basis.

The modified carryover basis rules allow the estate representative to increase the basis of items of property by $1.3 million. The representative cannot increase an item above its fair market value at the time of the decedent’s death, and the $1.3 million limit “is increased by the amount of the decedent’s unused capital loss carryovers and net operating loss carryovers.”

In 2010, the Tax Relief Act provided the current exclusion, setting the estate tax rate limit at 35% and creating a $5 million exemption. The act allows executors of estates of those who died in 2010 to elect to use the modified carryover basis rules instead of using the exemption. Though it seems that executors would have a relatively easy time choosing which system to use (estates over $5 million would make the election, estates under would not), many factors can complicate the decision.

For more information on deciding whether to take the election, see Justin P. Ransome, CPA, J.D. and Frances Schafer, J.D., Estate Tax or Carryover Basis? Practitioners must weigh the better option for estates of decedents who died in 2010, Journal of Accountancy, July 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.

Homeless Man Inherits a “Significant” Amount

Max Melitzer, a homeless man living in Salt Lake City, received life changing news this month—that he inherited a “significant” amount of money from his brother. Melitzer’s family hired detective David Lundberg to locate Melitzer after his brother’s death. After searching for two months, Lundberg found Melitzer in a Salt Lake City park and delivered the bittersweet news.

Though Lundberg declined to disclose the specific amount Melitzer inherited, he did state, “[Melitzer] will no longer be living on the street or in abandoned storage sheds. He’ll be able to have a normal life, and be able to have a home, provide for himself, and purchase clothing, food and health care.”

Private eye tells homeless man of inheritance, The Associated Press, Jun. 18, 2011.

Special thanks to J. Barrett Shipp (The Law Office of J. Barrett Shipp, San Antonio, Texas) for bringing this article to my attention.

Tax-Free Inheritance Using Roth IRAs

Two changes to the tax code now give investors with large 401(k) accounts the ability to give their grandchildren a tax-free inheritance of $400 million or more. Congress created this estate-tax break in two steps last year:

First Congress lifted a $100,000 income restriction on who can convert a 401(k) or IRA to a Roth IRA, allowing even the wealthiest investors to convert. Then late in the year, it raised the generation-skipping transfer tax exemption (GST) to $5 million until 2013. The exemption was previously $3.5 million, and was scheduled to drop to $1 million this year before Congress stepped in.

Converting to a Roth IRA is not for everyone though, as taxpayers must pay income taxes on assets moved to the account. Under Roth rules, assets left in the account can grow tax free, but the heir must take minimum distributions that can be stretched over a lifetime.

With the new GST exemption, the estate planning benefits that can be wrung out of a Roth are eye-popping. Consider an extreme case: A wealthy individual converts a large 401(k) account to a Roth IRA and names a grandchild as the beneficiary. The grandchild, at age 1, inherits the Roth, whose assets have grown to $5 million. Because of the new $5 million GST, the Roth assets would not be subject to estate tax or generation-skipping transfer tax.

Karen Hube, The tax law that could make your grandchildren super-rich,The Washington Post, Jun. 25, 2011.

Special thanks to Jim Hillhouse (Wealth Counsel) for bringing this article to my attention.

Incentive Trusts vs. Results Oriented Trusts

The 2011 and 2012 $5 million lifetime gift tax exemption has given many parents an incentive to transfer large amounts to their heirs now, as opposed to waiting for the probate process to begin. Some parents are funding incentive trusts as a means of ensuring that their heirs are responsible with their windfalls.

In order for beneficiaries to receive funds from an incentive trust, they must meet milestones such as graduating from school, becoming a philanthropist, or obtaining a full-time job. The trust can also promote a strong worth ethic by instructing the trustee to distribute an annual amount equal to a beneficiary’s earned income. Incentive trusts also provide the grantor an effect means of escaping estate taxes and establishing a legacy for younger generations.

These trusts may have unfortunate consequences, however. For example, a beneficiary may attempt to manipulate the system in order to receive his or her inheritance. Additionally, if the distribution is tied to salary, beneficiaries may be punished under the trust for pursing low-paying jobs like teaching or becoming stay-at-home parent.

An alternative to an incentive trust is a results-oriented trust. These trusts focus on and reward desired results as opposed to the process by which the beneficiary achieves them. The grantor can structure a results-oriented trust to focus on any goal, and the trust can define the grantor’s values. This structure allows beneficiaries to develop the skills needed to effectively manage their wealth, while at the same time giving beneficiaries the freedom to make their own life choices.

For mor information on results-oriented trusts, see Shomari Hearn, Do Incentive Trusts Encourage Responsibility?, Palisades Hudson, Jun. 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.

Determining the Basis of Gifted and Inherited Stock

Determining capital-gains tax due on gifted or inherited stock shares can be complicated. The basis of an inherited stock share is generally easier to determine than that of a gifted stock share as the basis for inherited stock shares is based on the stock’s value at the time the bequeathing party died. A taxpayer can locate the basis on a tax return of the estate or by researching the stock’s worth at the time of the decedent’s death. If the estate does not provide the stock’s value at the time of death, then the IRS will generally require brokers to determine the stock’s value and report it on Form 1099-B starting next year.

Determining the basis of a gifted stock can be a bit more complicated as it is based on what the original owner paid for the stock, along with any subsequent company changes (e.g. stock splits). In the best case scenario, the gifted stock will come with an original bank statement showing the amount paid for the shares. If the gifted stock does not come with cost-basis information, then the following steps may make locating the stock’s basis a little less troublesome:

• Review family archives for the original investment statements.
• Look in a Wall Street Journal dated the same as the year on the stock certificate for the company’s old stock symbol.
• Keep in mind that stock splits may cause further complications. Look on the internet and company websites for a genealogical tree listing cost basis affecting events.
• Many CPA firms will research cost basis changes and use software programs to help calculate the adjusted basis for their clients.

Though the IRS has not challenged many taxpayers to date concerning tax basis assertions, challenges may increase once the IRS requires brokers to report cost basis information on Form 1099-B.

The lesson for anyone thinking about making a gift of stock: Give cost-basis information along with it.

Without it, recipients could end up with a lot of detective work to do and a big tax bill if the trail runs cold, especially if they err on the side of caution and pay what they estimate the biggest likely tax bill would be.

Arden Dale, Tips for Solving the Cost-Basis Mystery, The Wall Street Journal, Jun. 20, 2011

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.

Highest Appeals Court in France Rejects Appointment of Guardianship Request for L'Oréal Heiress

The highest appeals court in France rejected Françoise Bettencourt-Meyers’ motion to have her mother, Liliane Bettencourt (daughter of the founder of L'Oréal), placed under legal guardianship. Bettencourt-Meyers claimed that her mother’s advisors were taking advantage of the L'Oréal heiress. The court held that the application was invalid because Bettencourt-Meyer had retracted her formal request the previous year during a settlement with Bettencourt.

See Appeals court rejects request to appoint guardian for Bettencourt, Family Business, Jun. 24, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.

Creditors' Rights to Insurance Proceeds in Illinois

Illinois laws exempt life insurance proceeds from creditors of the decedent-insured, but a number of exceptions allow creditors a chance to claim these proceeds. The Illinois Insurance Code, at 215 ILCS 5/238(a) (“5/238”) has limited language protecting insurance proceeds from creditors.

5/238(a) exempts (i) all life insurance proceeds that are payable either (a) to a wife or husband of the insured or (b) to a child, parent or other person depend upon the insured, and (ii) the cash value of a policy while the insured is still alive from attachment by the creditors of the insured for the insured’s debts and liabilities, except the amount o f premiums paid by the insured in fraud of creditors.

Section 12-1001 has similar language to 5/238, except that Section 12-1001's language is not as limited, allowing the exemption to expand to a beneficiary debtor. Under Section 12-1001, some life insurance proceeds are exempt from attachment by judgment creditors of both the life insurance policy beneficiary and the insured during her lifetime. In In re Ashley, 317 BR 352, 358 (CD Ill 2004), the court concluded that,

[L]life insurance proceeds received by a debtor who was a wife, husband, or dependant of an insured are exempt for the debtor/beneficiary’s creditors’ claims. The court said the same goes for property traceable to life insurance proceeds (i.e., that have been converted into other property), but only to the extent reasonably necessary to support the debtor or his or her dependent…”

Courts tend to interpret 5/238 more favorably toward the policy beneficiaries and 12-1001 more favorably toward creditors.

Under 5/238(a) creditors can still reach premiums paid by the insured in fraud of creditors and receive payment on debts of the estate. Additionally, creditors may have access to the value of a life insurance policy if a living insured names a trust, not a person, as a beneficiary on the policy. Creditors may also have claim to debts where a beneficiary is jointly liable to the creditor, even if the beneficiary is a spouse or dependent child.

Thomas A. Pasquesi and Thomas M. Badenhausen, Life Insurance Proceeds Are Exempt From Creditors—Or Are They?, 99 Ill. Bar J. 254 (May 2011).

Article on Experiential Learning in Trusts and Estates Courses

Gerry W. Beyer (Governor Preston E. Smith Regents Professor of Law, Texas Tech University School of Law) and Mary F. Radford (Professor of Law, Georgia State University College of Law) recently posted their article entitled Experiential Learning in Trusts and Estates Courses (2011) on SSRN. The abstract is below:

The Legal Education Committee of the American College of Trust and Estate Counsel has had extensive discussions about the increasing need for law schools to provide students with opportunities to engage in skills-related or experiential learning courses. Many Committee members observed that, as the large firms are cutting back on their hiring and many lawyers in all sizes of firms are being forced to be more focused on the bottom line, there are fewer and fewer opportunities for new young lawyers to receive the mentoring and training they need. Additionally, given the sad state of the job market, many of us are seeing our students start up their own firms immediately upon graduation.

In addition, the American Bar Association is placing more emphasis on experiential learning in its accreditation process. Standard 302(a)(4) requires law schools to provide each student with, “professional skills generally regarded as necessary for effective and responsible participation in the legal profession.” Interpretation 302-2 provides the following non-exclusive list of programs that fulfill this Standard: “[t]rial and appellate advocacy, alternative methods of dispute resolution, counseling, interviewing, negotiating, problem solving, factual investigation, organization and management of legal work, and drafting.”

Mary F. Radford and Gerry W. Beyer chaired a subcommittee to gather information on what types of experiential learning opportunities are being offered or being considered in our area of the law. The results of this survey are provided in this article. The authors provide contact information for many of the professors using the techniques and encourage you to contact them to learn more about their techniques and to share your own experiences.

CLE on Owning Buy-Sell Insurance Through Partnerships

The American Bar Association Section of Real Property, Trust and Estate Law is sponsoring a 90-minute teleconference and live audio webcast on July 19 entitled Using Partnerships to Own Buy-Sell Insurance. The program description is below:

Clients often prefer a cross-purchase buy-sell agreement but find practical problems often make them more difficult to administer than an entity purchase agreement. Our panelists will discuss a solution to these problems – using a limited liability company or other entity taxed as a partnership to hold life insurance policies used to fund a cross-purchase buy-sell agreement. Such a structure maximizes flexibility as ownership of an operating business changes over time, including the transfers of life insurance to owners entering or leaving the business. It also can provide superior income tax, estate tax, and asset protection results.

They will also cover how the owners should split the costs and benefits of such an arrangement, given differences in cost of insuring and each owner’s ability to contribute and percentage ownership in the business.

The economics, drafting, and tax considerations of three practical models will also be discussed.

Changes Same-Sex Couples Can Expect in New York

Same-sex couples in New York can expect to see changes to their financial lives now that they can legally marry. A list of some of the financial and legal changes couples can expect is below:

• Couples can file a joint state tax return but will have to file separate federal tax returns. For couples who earn less than $65,000 a year jointly, the amount they pay in state income taxes may decrease because they will receive a marriage bonus. Couples in a higher bracket, however, may end up paying more by filing a joint tax return.
• Couples may spend more time and money preparing their tax returns as they must prepare a dummy federal tax return using a married status in order to use that data while filing their state joint tax return.
• New York allows spouses to transfer an unlimited amount of assets at their death; individuals must pay state estate tax on estates over $1 million. (Couples will still be considered as individuals with regard to federal estate and gift taxes).
• Spouses of state employees will be eligible for health insurance, pension survivor benefits, and any other benefits available for state employees.
• For married lesbian couples having a baby, the woman who did not give birth to the couple’s child will also be recognized as a parent on the child’s birth certificate. (It may still be wise to have a formal adoption to secure the child’s legal status to both women).
• For married gay men using a surrogate, only the biological father will be listed on the child’s birth certificate. In New York, the surrogate mother must relinquish her maternal rights before the other father can adopt the child.
• Spouses may now bring wrongful death claims and receive worker’s compensation benefits if their spouse dies in a work-related injury.
• Couples will receive federal benefits if the Defense of Marriage Act (which defines marriage as being between a man and a woman) is ever struck down.

See Tara Siegel Bernard, How Gay Marriage Will Change Couples’ Financial Lives, The New York Times, Jun. 24, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.

Advice on Inherited Jewels

Many people who inherit jewelry do not know where to find advice on what to do with the pieces they inherited. One option is to visit an auction house (the auction house may come to you if the inheritance is valuable enough). The auction house will value and sale your pieces. The advantages of using an auction house are that most estimates are free, appraisers will suggest the appropriate time to sell your jewelry, and your pieces will be exposed to a wide market, including collectors and dealers. The drawback to using an auction house is that premiums for both sellers and buyers have risen. This means that both the buyer and seller will inevitably “lose” on the price. Additionally, a client can pay up to 10% to the company brokering the sale.

Another option is to sell directly to a dealer. Getting advice from a jewelry specialist can help ensure that a dealer does not give you a poor deal. Some of these advisors will advise clients on available offers, opine as to whether the pieces should be sold at auction or privately, and will sometime even educate clients on the art of jewelry.

See Maria Doulton, Maximising assets: Top tips on what to do with inherited jewels, Financial Times, Jun. 10, 2011.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

Same-Sex Marriage Legalized in New York

As I previously blogged, New York Governor, Andrew Cuomo, signed a bill legalizing same-sex marriage on Friday. The marriage bill was approved 33 to 29, and same-sex couples in New York can start legally marrying by late July (the law goes into effect in thirty days). New York joins Connecticut, Iowa, Massachusetts, New Hampshire, and Vermont, along with the District of Columbia, as the sixth state to legalize same-sex marriage. New York is now the largest state that grants legal recognition of same-sex marriages.

Though the Republican party successfully negotiated changes to the bill to protect religious institutions, New York’s Catholic bishops stated, “The passage by the Legislature of a bill to alter radically and forever humanity’s historic understanding of marriage leaves us deeply disappointed and troubled.”

All but one Democrat, Rubén Díaz Sr. of the Bronx, approved the marriage bill. Four Republicans supported the bill: Senators Stephen M. Saland of the Hudson Valley area, Roy J. McDonald of the capital region, Mark J. Grisanti of Buffalo, and James S. Alesi of East Rochester. After Cuomo signed the bill, Gristanti stated, “I apologize for those who feel offended… I cannot deny a person, a human being, a taxpayer, a worker, the people of my district and across this state, the State of New York, and those people who make this the great state that it is the same rights that I have with my wife.”

Supporters of same-sex marriage feel the passage of the bill in New York is particularly symbolic as the June 1969 riot against police in the West Village is known as the foundational moment for the gay rights movement.

Nicholas Confessore and Michael Barbaron, New York Allows Same-Sex Marriage, Becoming Largest State to Pass Law, The New York Times, Jun. 24, 2011; Michael Barbaro, Behind N.Y. Gay Marriage, an Unlikely Mix of Forces, The New York Times, Jun. 25, 2011.

Extra Funding for Medicaid Running Out

In February 2009, Congress approved extra federal financing for Medicaid as part of an economic recovery package. The number of Meicaid beneficiaries has increased since 2009, and the financing runs out at the end of this month. As a result, millions of people will be cut from their benefits.

Many states, in an attempt to reduce costs, are limiting Medicaid recipients’ benefits, increasing beneficiaries’ co-pays, reducing Medicaid payments to hospitals and physicians, and reducing the number of services covered. A recent survey found that twenty-four states reduced or were reducing Medicaid payments to providers, and twenty states limited or were limiting recipients’ benefits in some other way.

Medicaid is more vulnerable to cuts than Social Security and Medicare because its political support is not as broad. According to Senator John D. Rockefeller, IV, Democrat of West Virginia and chairman of the Senate Finance Subcommittee on Health Care, the majority of Medicaid’s population simply do not have the finances needed for lobbying.

Medicaid is very much on the chopping block. Seniors vote. But if you are poor and disabled, you might not vote, and if you are a child, you do not vote — that’s a lot of Medicaid’s population. They don’t have money to do lobbying.

Robert Pear, As Number of Medicaid Patients Goes Up, Their Benefits Are About to Drop, The New York Times, Jun 16, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.

New York Legalizes Same-Sex Marriages

On Friday, June 25, 2011, Gov. Andrew Cuomo of New York signed a bill legalizing same-sex marriage in New York within the next 30 days.

New York now joins Massachusetts, Connecticut, Vermont, New Hampshire, Iowa, and Washington, D.C. in allowing same-sex marriage.

See New York governor signs same-sex marriage bill into law, CNN.com, June 25, 2011.