The United States Tax Court recently decided a case where the issue was the role that a tax return due to the decedent played in overall estate tax liability. The Estate of Russell Badgett, Jr. et al v. Commissioner, T.C. Memo 2015-226 (Nov. 24, 2015) dealt with a very large…
STRICT ADHERENCE TO FORM On March 3, 2015 the Eighth Circuit Court of Appeals, sitting in Denver, Colorado, rendered an opinion in the case of Draper v. Colvin, where it explicitly admitted that it drew “a hard line” when it upheld the decision of the Social Security Administration that denied…
VALUABLE ASSET A residential lease in New York City or any desirable locale can provide many benefits. Some people wait years to get into a rent stabilized apartment. There is even a Seinfeld episode where Elaine quips that some people scan the obituaries to see if someone in a…
QTIP TRUSTS – WHAT IS IT? In our society, with divorces as common as it is, many people would likely benefit from a qualified terminable interest property (QTIP) trust. The QTIP trust gives a stream of income produced from a trust to a surviving spouse. That money passes without payment…
PROTECT ASSETS FROM CREDITORS The Domestic Asset Protection Trust is becoming more and more popular lately in various jurisdictions. Alaska created the first such law, effective April 2, 1997, with Delaware’s law going into effect on July 9, 1997. Since that time, 13 additional states adopted some form of an…
GIFT TAX LIABILITY Gift tax liability and estate planning sometimes intersect. The tax Court case of Steinberg v. Commissioner, 141 T.C. No. 8 (Sept. 30, 2013) deals with an interesting issue, if tax law can ever be interesting, where gift tax liability and estate tax liability intersect. It is important…
WITNESS ADVOCATE RULE In New York, as well as perhaps every other jurisdiction, an attorney may not serve as an attorney as well as a witness in the same case. Rules of Professional Conduct, Rule 3.7 is mandatory and not permissive. It does not matter if it is a bench…
SELL NOW OR PASS ON The issue of how to deal with the collection of fine art that you amassed over the years should be dealt with now rather than allowing your heirs decide for you. Perhaps your heirs do not have any appreciation for your original Ansel Adams or…
INHERITANCE RIGHTS AND OTHER RIGHTS There are many reason why people decide to adopt an adult, but there is essentially only one legal effect: the adopted child is legally treated as if they were a biological child. Most people would be right to think that the primary legal result is…
Say you live here in New York and made significant plans to avoid probate. You have a will, own a business that you pass on and even set aside significant assets for your grandchildren. You worked hard to put your financial house in order. Now you find out that you…