Taxation & Estate Planning

Bo Schembechler Trust Battle

Posted on November 17, 2009
Andrew Mayoras posts a good story here about Bo Schembechler’s son suing his step-mom over his dad’s trust. Andrew writes: From an estate planning perspective, Bo did everything right to avoid a family fight after he passed.  He created a living trust, which was quite detailed and left the income from his assets to his wife, Kathryn, passing [...

Ohio Fells Another Trust Mill ? UPDATE

Posted on November 01, 2009
My last post pointed to a Columbus Bar Association press release about Columbus Bar Assn. v. Am. Family Prepaid Legal Corp., Slip Opinion No. 2009-Ohio-5336, (available here as a PDF).  In that case the Ohio Supreme Court found that “American Family Prepaid Legal Corporation (?American Family?) and its various allied entities and associates ? after [...

Ohio Fells Another Trust Mill

Posted on October 19, 2009
From a Columbus Bar Association press release last Wednesday: The Columbus Bar Association announced today that the Supreme Court of Ohio, in a unanimous decision in Columbus Bar Assn. v. Am. Family Prepaid Legal Corp., Slip Opinion No. 2009-Ohio-5336, (available here as a PDF) took a momentous step to protect Ohio?s citizens from illegal trust mills [...

Income From Restricted Endowment Can Be Used For Construction Project at Cleveland Museum of Art

Posted on October 08, 2009
The Cleveland Museum of Art’s Endowment fund may use the income from four “art-purchase funds” to contribute to the cost of renovating the museum even though such use is against the original intent of such funds, the Cleveland Plain Dealer reported this morning...

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The Case That Will Never End ? Anna Nicole Smith Investigated in Murder Plot

Posted on October 08, 2009
I thought all elements of this case had been covered…  Oh how naive I can be. This article muses about Mrs. Smith’s possible involvement in a plot to kill her late husband’s son while they were battling over her husband’s estate...

The Future of The Estate Tax ? Rumor Round-Up

Posted on October 06, 2009
Much has been written of late about our evolving federal estate tax so I thought it prudent to aggregate the claims, guesses and rumors that are out there.  I don’t know if this is meant to assist you with planning decisions or just to get a sense of which way the prevailing winds are a-blowin’ [...

New ?Asisted? Suicide Case in Austrailia

Posted on August 16, 2009
CNN reports that an Australian man, Christian Rossiter, recently won his right to die, by refusing food and water, from the Australian Supreme Court.  The case is interesting for two reasons: 1) Chief Justice Wayne Martin wrote “Mr. Rossiter is not a child, nor is he terminally ill, nor dying...

An Update on The New Michigan Trust Code

Posted on August 15, 2009
The below is from a Plant Moran email blast that my dad forwarded to me this morning…  Thought it was important enough to share. The MTC was signed into law by Governor Granholm on June 18, 2009 and will become effective April 1, 2010.  However, the MTC will have immediate impact as individuals create or amend [...

The CBO ? Estate Tax Alternatives

Posted on August 08, 2009
The Congressional Budget Office has published the creatively titled:  The Estate Tax and Charitable Giving. (warning, link is a PDF) The preface reads in pertinent part: This paper by the Congressional Budget Office (CBO) [...] examines the effect that changing the estate tax would have on donations to charity...

A Worst Case Scenario For The Estate Tax

Posted on August 08, 2009
Greg Herman-Giddens of the North Caroline Estate Planning Blog cites inside sources in the U.S. Senate for the following prediction:  Congress will do nothing to reform the present estate tax laws.  Rather, they will pass a one year extension of the status-quo and let the exemption fall to $1 million per person – which will [...

Heir to IBM Fortune Adopts Her Lesbian Parter in Maine ? Supreme Court Upholds Adoption?s Validity

Posted on July 24, 2009
This seemed as good a topic as any to ease myself back into the blog-o-webs, so here goes: According to this story at 39online.com (a CW network affiliate out of Houston), Maine’s highest court gave a legal victory Thursday to a woman who stands to stake a claim to a share of one of America’s premier business [...

Been a while

Posted on July 24, 2009
Coming soon…  New Posts!!! I know.  You’re excited.  Its ok to admit how you feel, no one will judge you here.

Maryland Authorizes Pet Trusts

Posted on April 18, 2009
On April 14, 2009, Maryland’s Governor O’Malley signed into law House Bill 149 which authorizes statutory pet trusts. Professor Berry gives us some of the key features of the statute in this post: The animal must be alive during the settlor’s lifetime...

To Restate Or Not To Restate - That Is The Question

Posted on April 18, 2009
Professor Berry tangentially raises the above question in a post today on the Wills, Trusts & Estates Prof Blog via his telling of the case of Soefje v. Jones, 270 S.W.3d 617 (Tex. App.?San Antonio 2008, no pet. h.). The case pits brother against sister in a dispute over the meaning of a trust amendment to [...

Gay marriage, by legislature, in Vermont

Posted on April 07, 2009
Someone asked me the other day:  Michael, why are so many of your blog posts about gay marriage?”  “Well”, I replied, “Because tyranny, like hell, is not easily conquered.” I know, I’m pretty awesome right?!  Well, in truth, I am only that which Thomas Paine made me...

The Estate Tax = Smart (The Universe In Balance)

Posted on April 06, 2009
Well, maybe not the universe, but at least this blog. Balancing my earlier post on why the estate tax is bad comes this April Fools Day Editorial in the NYT:  The Forgotten Rich.  I don’t think the rich have been entirely forgotten recently even though many of them wish they had been, but the article makes some [...

Senate Passes Amendment to Reduce Estate Tax & Raise Exemption

Posted on April 03, 2009
Lots of movement on this in the last week. This morning Brad Wrightsel wrote here about the Senate having passed “a nonbinding but symbolically important amendment” rasing the exemption to $5 million and lowering the rate to 35%. The Hill, The New York Times, Fox News and the Wall Street Journal all carry their own versions of the [...

Iowa Supreme Court Strikes Down Gay Marriage Ban

Posted on April 03, 2009
This is what happens when I schedule early morning meetings…  Everyone else gets the good stories out first. The ABA Journal, The Volokh Conspiracy and Professor Berry’s ever-timely Wills, Trusts & Estates Prof Blog all wrote this morning to report on the Iowa Supreme Court striking down the state’s ban on same-sex marriages...

The Estate Tax = Stupid

Posted on April 02, 2009
Professor Beyer beat me to it…  He found this great article on why the estate tax is dumb/evil.  He credits Patrick Sylvester of The Sylvester Law Firm, PC, and its really so good that I had to thank Mr. Sylvester in this post as well.  The Good Professor excerpts the following and I thought it [...

Estate Tax News: Proposed Exemption Fixed at $3.5 Million

Posted on March 28, 2009
From this story (3/26): Senate Finance Committee Chairman Max Baucus (D-Mont.)today announced legislation that would make existing tax breaks permanent for working families and individuals including the child tax credit, marriage penalty relief, and lower middle-income tax rates among other provisions...

Reverse Mortgages After The Obama Stimulus - More Options

Posted on March 26, 2009
I wrote previously about reverse mortgages and their uses, but this seemed worth commenting on.  Looks like the stimulus package has beefed up the loan amounts available and capped some of the fees: Reverse mortgages have been around for a while, but because of recent changes now look more appealing...

Oops?

Posted on March 19, 2009
Big ups to Saul Elnadav of Vishnick McGovern Milizio LLP!  Saul is the pulbisher of the New York Trusts & Estates Law Blog.  Saul wrote me last night to let me know that my RSS feed wasn’t working properly, which I was completely unaware of...

Dana-Faber Cancer Institute Says: Pious Fight Death Hardest

Posted on March 18, 2009
An interesting article from Slashdot today linking to this BBS story: A US study suggests that people with strong religious beliefs appear to want doctors to do everything they can to keep them alive as death approaches. The study, following 345 patients with terminal cancer, found that ‘those who regularly prayed were more than three times [...

Anna Nicole Smith Case Update(s)

Posted on March 13, 2009
Special thanks up front to Professor Berry for these updates.  Without his lasting diligence I would have been forced to get my news from other, much less reputable places ;). 1.   Linking to this post at The Daily News, the Good Professor reports that a writ was filed before the U...

Best. Law Review. Title. Ever!

Posted on March 13, 2009
Is It Really Possible to Do the Kessel Run in Less than Twelve Parsecs and Should It Matter? It looks to be a great article about the myriad little inaccuracies in sci-fi films and what happens when we accept these inaccuracies  as fact.   The sub-title is Science in Film and its Policy Implications...

AMT TidBits

Posted on March 08, 2009
Fairmark:  “AMT Deficit” Goes On-Budget; Change Has Profound Implications, by Kaye A. Thomas: The Obama administration is poised to make a stunning change in budget policy. The change will add over $1 trillion to the projected federal debt ? and that’s good...

Another Ohio T&E Blog!

Posted on March 05, 2009
Bradley B. Wrightsel has been a friend and collegue for a number of years and has apparently been posting his own blog (The Ohio Estate Planning, Trust & Probate Law Blog) for a few of those years.  And I had no idea!  I’m so embarassed. Brad and his father Doug Wrightsel have been practicing together for [...

Debts Owed By A Decedent/Their Estate

Posted on March 04, 2009
An interesting, and disappointing article this morning from the NYT, “You?re Dead? That Won?t Stop the Debt Collector.”  I’m not disappointed in the NYT, its a fine article I guess, rather, I’m disappointed by the number of people who are apparently willing to pay the debts of their deceased relative(s): The people on the other end [...

This Is A Good Idea

Posted on March 03, 2009
Gutsy.  And a good idea.

Giving Property To Your Children - Talk To Someone First

Posted on March 01, 2009
What could go wrong? If you give property to a child, it could be at risk if that child is sued or files for bankruptcy. If you put money in your child’s name that they plan to hold on to for your future use, this could count against them if they need to apply for financial aid [...

Not T&E Law - But Seriously Rush, Maybe You Should Read That Which You Purport To Revere

Posted on March 01, 2009
At CPAC, Mr. Limbaugh exuberantly declared the following: We want every American to be the best he or she chooses to be. We recognize that we are all individuals. We love and revere our founding documents, the Constitution and the Declaration of Independence...

Adopting The Dead

Posted on March 01, 2009
Leave it to Michigan… ENROLLED HOUSE BILL No. 5828:  (1) Beginning January 1, 2004, if an application for adoption has been filed under this chapter and all the requirements of subsection (2) for entering an order of adoption under this chapter have been met, the probate court may enter an order of adoption, even if the adoptee is [...

Attorney Layoffs Hitting Close to Home

Posted on February 20, 2009
…  Gotta go.  Gotta bill. Meanwhile, the Cleveland Plain Dealer reports on these layoffs by firms in its area: ? Thompson Hine is laying off 12 lawyers, five paralegals and 29 administrative workers. ? Roetzel & Andress is laying off 13 associates and 18 staffers...

I’m Having A Hard Time…

Posted on February 14, 2009
I’m having a hard time remembering when have been this incensed. With Judge Conahan serving as president judge in control of the budget and Judge Ciavarella overseeing the juvenile courts, they set the kickback scheme in motion in December 2002, the authorities said...

The American Recovery and Reinvestment Act of 2009 - House vs Senate Comaprison

Posted on February 12, 2009
An uber-thanks is due to Greg Herman-Giddens of the North Carolina Estate Planning Blog for the below chart.  Best I’ve seen yet, thanks Greg.  Its a “side-by-side comparison of the tax provisions in the House and Senate versions of ?The American Recovery and Reinvestment Act of 2009...

Eluana Englaro Update

Posted on February 10, 2009
Eluana Englaro, 38, died in the middle of a debate about her right to die last night after doctors stopped feeding her. It is probably more accurate to say: “after the withdrawawl of artificially supplied nutrition and hydration.”  Details...

Estate Tax Changes? (aka: No One Has Any Real Idea What’s Going To Happen)

Posted on February 10, 2009
Notwithstanding one’s belief in mythical orthodonture-bartering fairies, we all need to keep an eye on where the estate tax is going.  JLM of the Trust & Wealth Management Marketing Blog gives us the following three possibilities: Stay the same...

Abraham Lincoln’s 200th Birthday

Posted on February 08, 2009
The bi-centenial of Lincoln’s birth was yesterday.  In honor thereof I thought to post a couple of my favorite pieces of writing by him. The Bixby Letter: In 1864, Massachusetts Governor John Albion Andrew wrote to President Lincoln concerning one Mrs...

Suing Your Estate Planning Attorney For Malpractice in Ohio

Posted on February 08, 2009
I have written before about some pretty poor estate plans; some so bad that I can’t imagine them having ever done anyone any good such that they now seem only to serve as wanton conduits for human despair.  And I have also often commented that someone ought to sue such’n’such attorney for malpractice...

Same-Sex Spouse To Inherit Deceased Partner’s Estate

Posted on February 05, 2009
Saw this yesterday and its making its predictable rounds (here and here and here) today.  The actual decision was hard to find so I offer it to you here (PDF).  I enjoy these decisions; the ones whose menial size belies the hefty weight of their potential impact...

The Ever-Present Need For Living Wills and Health Care Proxies… Schiavo, Englaro and Many More

Posted on February 04, 2009
I’m reminded of the terrible case of Terry Schiavo when I see stories like this one on CNN this morning.  I’m also reminded that this unfortunate collision between the perceived intent of the disabled individual and, well, any other force, can be so easily avoided...

Avoiding Probate vs Avoiding Taxes vs Medicaid Eligibility

Posted on February 02, 2009
This morning’s post is kind of a follow up to one of yesterday’s posts where I tried to elucidate the differences between planning to avoid probate and planning to “avoid” taxes.  I was inspired this morning to write this brief follow up by Michael J...

Dead vs. Mostly Dead

Posted on February 01, 2009
It just so happens that your friend here is only MOSTLY dead. There’s a big difference between mostly dead and all dead. Mostly dead is slightly alive. Miracle Max made this important distinction in The Princess Bride…  Professor Beyer sparked this memory this morning when he asked if technically dead is dead enough...

Where Not To Die

Posted on February 01, 2009
couldn’t not steal that title from Forbes The above states (and the District of Columbia) are the remaining states that still impose their own estate tax.  Eight states (shaded in orange) impose an inheritance tax, meaning the tax rate (in black) depends on who gets the money...

The Trustee’s Duty to Disclose

Posted on February 01, 2009
Professor Beyer this morning pointed to an article by this (jolly looking) associate at McGuire Woods LLP, called, Navigating the Trustee?s Duty to Disclose, Prob. & Prop., Jan./Feb. 2009, at 40. He intros his article thus: Parents are rightfully concerned about the possible negative effects of inherited wealth on the lives of their children...

Obama & The Estate Tax

Posted on January 12, 2009
I’ve touched on this before but the news is making the rounds yet again this morning: President Obama plans to retain the estate tax and is looking to fix the individual exemption at its current level of $3.5 million per person.  There had been some talk during the campaign about perhaps making the exemption portable, but [...

Required Minimum Distributions (RMD) Update

Posted on December 24, 2008
Yesterday I wrote about the very small amount of time left that you (as a beneficiary of a 401k) have to take your required minimum distributions…  And then this morning President Bush signed HR 7327 “which delays required minimum distributions from certain retirement accounts for” 2009…  So there you go!  Mystery solved...

Washington Changes Its Mind & You Have 8 Days Left (in 2008) To Comply

Posted on December 23, 2008
According to these various & sundry stories, it looked like Washington was going to act to suspend the minimum distribution requirements for 401ks for 2008 and 2009.  No idea what I’m talking about?  Michael Keenan can help: RMD’s are a specific amount of money, based on your life expectancy and the balance in the account, that [...

Ohio man who tried to kill parents may get their $500,000 estate

Posted on December 22, 2008
Is it odd that I live in Ohio and I heard about this story from a guy who lives (and blogs) in Illinois?  Anyways… This very friendly looking guy apparently tried to murder his adoptive parents when he was 17.  First, he laced their tea with cyanide and Second (as if you needed a second), he shot [...

Wouldn’t This Be Nice

Posted on December 22, 2008
Joel Shoenmeyer writes here about the (relatively) new Illinois law (Public Act 95-0784) that allows an individual to name a beneficiary of a car thus allowing it to pass outside of probate…  This would be great. There is only so much work one can do in Ohio to assitt clients with avoiding probate but there’s always [...

Not Trusts or Estates… But A Cure For HIV

Posted on November 09, 2008
From this story today on Slashdot comes the remarkable cure of a patient with HIV: “HIV is the virus that causes Acquired Immune Deficiency Syndrome (AIDS). Until now, HIV has no cure and has led to the deaths of over 25 million people. However, a possible cure has appeared...

Washington State’s New Death With Dignity Act

Posted on November 07, 2008
This Tuesday Washington State became the second state (after Oregon) to allow doctors to prescribe lethal doses of medication to terminally ill patients. From the Elder Law Prof Blog: Initiative 1000 was leading in most counties across the state Tuesday...

VOTE NOW!

Posted on November 04, 2008
Just do it.  And when you’re done you can come back and watch this funny little video.  If you have already voted then you can watch it now.  But, seriously, if you haven’t voted, you don’t get to watch it.  Google is watching you right now, so I’ll know if you didn’t vote but you [...

Sarah Palin Fact Check: Obama Will Endanger Special Needs Trusts

Posted on October 31, 2008
The McCain/Palin ticket is really reaching now. In Pittsburgh on Friday, Oct. 24, Gov. Sarah Palin noted that parents of children with special needs often set up trusts to help ensure long-term assistance. “Many families with special needs children or dependent adults” are concerned that Sen...

Increasing the Gift Tax Annual Exclusion

Posted on October 16, 2008
The IRS has announced their annual inflation adjustments for 2009 which includes an increase in the annual gift exclusion.  The annual gift tax exclusion for present interest gifts will be $13,000. Thanks to Greg Herman-Giddens of the North Carolina Estate Planning Blog for the heads up...

Estate Taxes: Obama vs McCain

Posted on October 15, 2008
From today’s WSJ and the Tax Prof Blog comes this comparison of the estate tax schemes under the two leading Presidential candidates: They agree on more than you might think: Raising the Individual Exemption: For 2008, the basic federal estate-tax exemption is $2 million per person, and the top estate-tax rate is 45%...

McCain Calls for Suspension of Minimum Distribution Rules

Posted on October 14, 2008
I would have thought this was a bigger deal than McCain would lead us to believe having buried its announcement a third of the way through his stump speech, but I am kind of a geek: [On October 10,] John McCain called for suspension of the requirement that retirees must begin liquidating their retirement accounts when they [...

FDIC Insurance & Trust Beneficiaries

Posted on October 13, 2008
The news regarding FDIC insurance limits and trust beneficiaries has been making the rounds this morning, both here and here…  But I thought it needed a little more context. First, a little background: The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or [...

Reverse Mortgages, Probate Liquidity and Medicaid Eligability

Posted on July 19, 2008
One of my favorite bloggers, Joel A. Schoenmeyer of the Death & Taxes Blog writes here about “the reverse mortgage probate problem and liquidity.” A reverse mortgage results from a home owner age 62 or older converting the equity in their home into tax-free income without having to sell the home, give up title, or [...

Not T&E, but, SHOCKING: Cutting Taxes = Less Money To Government

Posted on July 19, 2008
Forgive my sarcasm but I can’t abide our government’s woeful ignorance of history, especially economic history: From Paul L Caron of the TaxProf Blog comes a report by the Center on Budget & Policy Priorities on their finding that That Tax Cuts Lose Revenue: The claim that tax cuts ?pay for themselves? ? i...

A Piece of History From James Brown’s (messed up) Estate

Posted on July 19, 2008
I’ve written on Mr. Brown’s troubled estate before.  Mark Jakubik brings us the most recent update with news of the recently approved auction of his personal property. A South Carolina judge on Monday cleared with the way for an auction of James Brown’s possessions to be held later this week, giving fans a chance to bid [...

Dr. Martin Luther King & Corretta Scott King Estate Litigation

Posted on July 11, 2008
From today’s CNN comes this distressing story… Bernice King and Martin Luther King III, two of Dr. Martin Luther King’s children are suing their brother, Dexter, the Executor of their father’s estate, accusing him of wrongfully taking money from both of their parents’ estates...

Not T&E Law: Blogger’s Guilt

Posted on July 04, 2008
Having happily emerged from my Catholic sarcophagus a mere 17 years ago, I found this subject intriguing. This post provides the verbose definition of Blogger’s Guilt: ?A fit of guilt, physical discomfort or dysphoria that occurs when one is too busy with an actual social or professional life to properly update one’s livejournal...

All About Me!

Posted on July 04, 2008
My new bio is up at the new firm. So far everyone has been great, from the IT staff to our new office manager. It feels like a good fit and, despite the few unavoidable hiccups, things are going very well so far.

CNN: Obama Likes $3.5 Million For Estate Tax Exemption

Posted on June 28, 2008
The last section in this story by CNN today: Obama favors maintaining the estate tax, which is scheduled to be repealed in 2010 for one year. But he would limit its reach.Obama would freeze the estate tax exemption amount at $3.5 million - up from its current $2 million level and the $1 million level it’s [...

Financing Your Life Insurance Premiums

Posted on June 26, 2008
This interesting idea comes to us today by Greg Herman-Giddens of The North Carolina Estate Planning Blog.  Greg writes: Many of us could use more insurance for estate planning  purposes, such as financial security  for loved ones or payment of estate taxes...

Antipsychotics Increase Risk of Death in Dementia Patients, FDA Warns

Posted on June 21, 2008
FDA ALERT [6/16/2008]:  FDA is notifying healthcare professionals that both conventional and atypical antipsychotics are associated with an increased risk of mortality in elderly patients treated for dementia-related psychosis. In April 2005, FDA notified healthcare professionals that patients with dementia-related psychosis treated with atypical antipsychotic drugs are at an increased risk of death...

Northwestern to Offer 2-Year J.D. Program

Posted on June 21, 2008
This one was just everywhere. According to NU’s press release, “Northwestern University School of Law will offer an accelerated JD program starting in 2009[.]“ NU will be the first top tier law school to offer such an accelerated program...

Heath Ledger may have more than one child

Posted on April 04, 2008
I was afraid this was not going to go well. I was dismayed to hear about Mr. Ledger’s demise and its only getting worse. In a follow-up to my earlier post on Heath’s estate troubles, Professor Berry links to this article about one of his uncles speculating (and it sounds like he’s only [...

$10 Million? Nope, still not rich

Posted on April 04, 2008
So what does it take for a comfortable retirement? Well, according to Yahoo finance: Yes, it takes more than $10 million to be seen as rich these days. It takes more like $25 million. Not only is that the minimum for the red-carpet treatment at a growing number of banks, it is also, in the view of [...

New Link Added

Posted on April 03, 2008
J. Michael Young of Sanders, O?Hanlon, & Motley, PLLC in Sherman, Texas just started The Texas Probate Litigation Blog. And in the brief time since the site’s inception he already has an impressive list of posts including: Failure to disclose justified removal of independent executor...

Man Declared Dead Update

Posted on March 25, 2008
So after speaking with my wife (who is a good deal smarter than I am - and whose mom is a nurse) I learned that the “under the fingernail test” is the usual course in cases like this… who knew? Well, besides my wife and the entire medical community I mean Please [...

CNN: Man declared dead, says he feels ‘pretty good’

Posted on March 24, 2008
After doctors in Oklahoma City had pronounced Zach Dunlap brain dead and as his family was paying their last respects, someone drew a pocket-knife across Zach’s foot which drew a response… His foot moved. Later his hand also moved when the family apparently applied pressure “under a fingernail...

Feuding Over Heath Ledger’s Estate

Posted on March 21, 2008
According to this post in today’s Wills, Trusts & Estates Prof Blog and this post at Yahoo (omg.yahoo.com), Heath Ledger’s family is embroiled in a battle over the control of Heath’s estate: Heath’s Uncles are less than satisfied with Heath’s father’s (Kim’s) ability to care for Heath’s assets claiming that they’re only interest is that Heath’s [...

Is There More Conflict Inherent In People’s Estate’s Than Back In “The Good Old Days”?

Posted on March 21, 2008
The premise of this post is that, because of the decline in “traditional family values” (e.g. the “loosening”of the traditional nuclear family due to “[t]hings that used to be taboo - divorce, children born out of wedlock” etc...

Top 12 Tax Scams

Posted on March 21, 2008
This list from the California Tax Attorney Blog (my other lists can be found here and here) is of the Top 12 Tax Scams. Check out Mitchell’s post for the full list. 6. Frivolous Arguments Promoters of frivolous schemes encourage people to make unreasonable and unfounded claims to avoid paying the taxes they owe...

What Not To Say In A Pleading To A State Supreme Court Investigating Your Possible Disciplinary Charges

Posted on March 21, 2008
While I can imagine any number of things that fit on this list, Florida Attorney and Anti-Video Game Blow-Hard, Jack Thompson recently filed #1: “Make my day.” Seriously. He said this, not just to a court, but to the Florida Supreme Court as they were investigating disciplinary charges against him… Wow...

Retaining The ‘Lost Generation’

Posted on March 16, 2008
The “Lost Generation” are those associates in large firms who are running for their lives in alarming, and growing, numbers. Why they leave is an easy question to answer: They’re given mostly drudge work, they face unceasing pressure to produce and they’re kept in the dark about firm finances and the broader strategies [...

Goodbye Medicare Part D - April 1, 2008?

Posted on March 16, 2008
From the Center for Medicare Advocacy comes the following: The Social Security Administration (SSA) has begun mailing “SSA Medicare Prescription Drug Assistance Notice of Termination” letters to some beneficiaries who are currently receiving the low-income subsidy (LIS) or “Extra Help...

The Future Of The Estate Tax

Posted on March 16, 2008
[I know!, I just borrowed another title! I’m so ashamed.] I don’t think Professor Berry will mind though if I give him proper attribution. Thanks Professor! He writes in this post about the various suggestions being made to congress on ways to overhaul the US’ tax system...

Another Attempt By A POA Holder To Modify A Trust

Posted on March 16, 2008
David Goldman writes here about Gurfinkel v. Marmor December 12, 2007, 32 Fla. L. Weekly D2931 (Fla. 3rd DCA) (PDF). A case out of Florida where “[t]he decedent?s trust beneficiaries challenged a pre-death “amendment” executed by the decedent?s spouse as attorney in fact pursuant to a valid Durable Power of Attorney...

New Hope for the Rich

Posted on March 16, 2008
I don’t usually prefer to rip off other’s titles, but this one from Friday’s NYT on the estate tax was too good to pass up. As proof that Americans are getting poorer, the article offers the following: In 2007, home equity fell below 50 percent for the first time on record since 1945...

I’m Back!

Posted on March 16, 2008
Sorry for the conspiscous lack of posting this last week. I took a little break in the Napa Valley but I’m back now… So much to talk about too! I just didn’t feel it right to start posting again without some mention of my brief absence...

IRS Allows Favorable Gift Treatment for S Corp

Posted on March 07, 2008
Greg Herman-Giddens (of the North Carolina Estate Planning Blog) notices us in this post to a recent revenue ruling (Rev. Rul. 2008-16; 2008-11 IRB 1) that gives favorable treatment to charitable gifts of appreciated property by a Subchapter S corporation...

Charities Lose Out on $8 Million

Posted on March 07, 2008
In this post today, David M. Goldman of the Florida Estate Planning Lawyer Blog writes: Only five weeks before his death Leonard R. Brener made a change to his will. (I think we can see where this is going.) He decided to change his beneficiaries form four local charities to his niece and her [...

Disability Planning and The Pope

Posted on March 05, 2008
According the CNA here, on February 25, 2008, Pope Benedict reiterated the Church’s opposition to all forms of euthanasia… The Pope said that death ?concludes the experience of earthly life, but through death there opens for each of us, beyond time, the full and definitive life...

California Supreme Court Hears Gay Marriage Case

Posted on March 05, 2008
In oral argument yesterday that took over 4 hours, “the California Supreme Court heard arguments in the most important same-sex marriage case since Massachusetts?s highest court allowed gay and lesbian couples to marry there more than four years ago...

Anna Nicole Smith Update - no, we’re not done yet

Posted on March 05, 2008
According to this story at Reuters, a judge in LA today “ruled that the baby daughter of deceased model Anna Nicole Smith is the sole heir to her estate, meaning 18-month-old Dannielynn could inherit a multimillion-dollar fortune.” In case you forgot (and if you’re reading this blog its not likley that you did), “Smith, a former [...

?I am revoking my trust.? Courts says: “So what”

Posted on March 02, 2008
The settlor sent a letter to the corporate trustee of her revocable lifetime trust stating , ?I am revoking my trust.? (Seems pretty clear right?) The settlor made statements indicating that she intended to revoke the trust but also made statements to a bank officer and an attorney which led them to conclude that she intended only to remove the bank as trustee and the attorney prepared documents to do so...

New Proposed Regulations for 529 Plans

Posted on March 02, 2008
Thanks to Greg Herman-Giddens of the North Carolina Estate Planning Blog for his link to the IRS’ new proposed regs governing 529 College Savings Plans. The new regs will include: 1. an anti-abuse rule (to prevent using 529 Plans to skirt gift tax rules); 2...

Ted! Yes!

Posted on February 26, 2008
I’ve been watching Scrubs for years… Even the re-runs. And I’ve always loved Ted. Therefore, from The Billable Hour comes: The Best of Ted Click Here to share this post with other social netowrking sites

The Problem with Joint Property - Fund Your Trust People!

Posted on February 24, 2008
Another one from Greg Herman-Giddens of The North Carolina Estate Planning Blog that reminds me of one of my other posts: Greg writes here about The Problem Of Joint Tenancy. His post is well-written and informative and explains the pros and cons of holding property jointly (sometimes with survivorship)...

What Not to Say to The IRS

Posted on February 24, 2008
A little while ago Mitchell Port of The California Tax Attorney Blog posted about Hairbrained Tax Schemes. He linked to this article (PDF), called The Truth about Frivolous Tax Arguments which is “the [IRS?s] response to anyone who contemplates arguing on legal grounds against paying their fair share of taxes...

This Blog is Not Political… But…

Posted on February 20, 2008
Lawrence Lessig is considering running for congress and I couldn’t be happier about it. As a geek in my former life I have followed Mr. Lessig’s career (and read all his books) and have been consistently impressed by his obviously stunning intellect...

Power of Attorney Holder Could Not Modify Trust

Posted on February 16, 2008
This post by Charles Rubin of the Rubin On Tax Blog is an interesting one because it touches on a running debate in my firm, which is: To what extent should one of court client’s durable powers of attorney be able to modify their trust? Some don’t like the extent of the power granted by our durable POA because it essentially allows the POA holder to completely restate or even revoke the Grantor’s trust...

In Terrorem Clauses - An Important Distinction

Posted on February 16, 2008
In Terrorem clauses are often used by estate planner’s to coerce someone (usually a beneficiary, or someone who thought they should have been a beneficiary) to not sue the trust or estate. They can be useful but as this post by Professor Berry illustrates, they don’t prevent all actions against Trustees...

Tolkien Trust Sues New Line - May Kill “Hobbit”

Posted on February 12, 2008
From today’s Slashdot: “The AP is reporting that the Tolkien Trust and HarperCollins are suing New Line Cinema for $150 million in compensatory damages, unspecified punitive damages, and a court order revoking New Line’s rights to produce any more films on Tolkien properties...

Kaplan’s Top Ten Myths of Social Security now available via SSRN

Posted on February 11, 2008
From The Elder Law Prof Blog and Kim Dayton comes a link to Dick Kaplan’s Top Ten Myths of Social Security: (1) there is a trust fund, (2) Social Security does not increase the federal budget deficit, (3) retirees are only recovering their own money, (4) Social Security will not be there when one retires, (5) retirement benefits are proportional to one’s lifetime earnings, (6) Social Security favors two-income married couples, (7) Social Security favors long-lived marriages, (8) one could do better investing directly, (9) working after retirement makes financial sense, and; (10) retirement benefits are taxed more heavily than other pension payments...

Gettin’ Some Press!

Posted on February 08, 2008
Columbus’ Business First is running an article today (available here in PDF) by Brent Wilder called Columbus law firms waking up to blogs as client development tool and it (kind of) features yours truly! The caption under the picture in the article isn’t quite right, but it’ll do I guess...

Same-Sex Marriage Round-Up

Posted on February 08, 2008
Both of the below articles come from my good friend Professor Beyer over at the Wills, Trusts & Estates Prof Blog. New York Recognizes Same-Sex Marriages From Other Jurisdictions On February 1, 2008, a New York appeals court that same-sex marriages that are valid in the jurisdiction where performed are entitled to recognition in New York...

The Problem of Sloppy Drafting

Posted on February 01, 2008
This one is really too bad… A testator?s will poured the residue of his estate over to his lifetime trust which directed the trustee to distribute certain parcels of real property to certain persons. However, the parcels were owned by a corporation of which testator was sole shareholder...

Larry King and Ohio Substitute House Bill 404

Posted on January 30, 2008
A while ago I blogged here (with an update here) on Larry King suing an adviser of his for a life settlement Mr. King apparently didn’t like (or at least regretted afterwards). In this article in Columbus’ Business First we learn that “Ohio insurance regulators are taking aim at a method of buying life insurance policies from consumers, which they argue is hurting the industry in the state...

“Living Trust Mills Update”

Posted on January 26, 2008
The Connecticut Elder Law Blog picked up on Dave Goldman’s post here listing recent Living Trust Scam Articles and resources on his blog. Its a great list that I’m very glad David took the time to put together. David emailed me after I posted here to thank me for linking to his original article on the same subject...

New Poverty Guidelines Will Affect Medicare/Medicaid Eligibility

Posted on January 26, 2008
As if it wasn’t bad enough already for those relying on Medicare/Medicaid: New federal poverty level (FPL) guidelines published January 23, 2008 will affect eligibility levels for many public benefits, including health benefits for older people and people with disabilities...

Pet Trusts In California

Posted on January 26, 2008
Professor Beyer writes here about SB 685 being considered by the California legislature. At one time, California was a leader in the pet trust field when it passed Probate Code § 15212 providing that “[a] trust for the care of a designated domestic or pet animal may be performed by the trustee for the life of the animal, whether or not there is a beneficiary who can seek enforcement or termination of the trust and whether or not the terms of the trust contemplate a longer duration...

A Different Set of Tax Rules for Non-U.S. Citizen Spouses

Posted on January 26, 2008
Thanks to Michael Keenan of the The Connecticut Elder Law Blog for this post warning those couples who are not both US residents. When you have two spouses who are both U.S. citizens, then upon the death of the first spouse there is never any tax regardless of how large your estate is...

9 Out of 10 CPAs Say Their Clients Are Concerned About…

Posted on January 25, 2008
1. Retirement 2. Health Care Costs 3. Education Costs In responding to an open-ended question, nine out of 10 CPAs surveyed said their individual clients were concerned about retirement. Costs associated with health care and education were ranked by respondents as the second (59 percent) and third (47 percent) financial concerns of clients...

Not Trusts & Estates But…

Posted on January 25, 2008
… it is about Ohio… and blogging… And blogging in Ohio. The Ohio State Journal of Criminal Law has its own blog now. You can find it here. Click Here to share this post with other social netowrking sites

Elder Abuse Roundup

Posted on January 25, 2008
No one wants to talk about it but it happens all the time… Much more than is actually reported. Loved ones of residents need to be constantly on the look-out for signs of abuse as reflected by their behavior. The growing issue of elder abuse in [Western North Carolina] This article contains some good (and scary stats)...

Living Trust Scams/Trust Mills/Elderlaw Planning Seminars - STAY AWAY!

Posted on January 21, 2008
A living trust scam is typically where [older] couples are drawn to a seminar (of some kind) at which they are sold a one-size-fits-all estate plan that almost always involves some kind of a trust. However, there is no such thing as a one-size-fits-all estate plan...

Legacy Trusts For The EveryMan/Woman/Couple

Posted on January 19, 2008
This NYT Article by Hillary Chura on January 5, discusses the benefits of legacy trusts for “regular people” - aka, those of us who don’t have millions of dollars: ONCE only for the superrich, dynasty trusts now provide a way for the rest of us to leave money to loved ones, preserve wealth for future generations and even control how an inheritance is used once donors die...

A Challenge to Wasington’s Slayer Statute

Posted on January 19, 2008
From The Wills, Trusts & Estates Prof Blog a few days ago. (direct link here) Washington’s slayer statute is like others in that its designed to prevent those who are guilty of killing someone from collecting from their estate. Apparently though, the Washington State’s statute is notoriously vague...

Child Support Obligations of Sperm Donors

Posted on January 13, 2008
From The Volokh Conspiracy comes this post on Ferguson v. McKiernan, 2007 WL 4555436, Pa., December 27, 2007 (available here in PDF). A man (McKiernan) agrees to provide sperm to an unmarried woman (Ferguson) who wishes to become a single parent but wants to use the sperm of someone she knows rather than an anonymous donor...

Twins Marry in England

Posted on January 13, 2008
This story at CNN a few days ago is wild: Two British twins who were separated at birth, grew up apart, fell in love, and married. It was not until later that they discovered they were related and the marriage annulled. The article does not reveal how long they were together before discovering the truth...

Naming Your Trust as Beneficiary of Your IRA/401k, etc.

Posted on January 13, 2008
In a post today called “Leaving IRA Money to a Minor”, David Goldman of The Florida Estate Planning Lawyer Blog (which is chock-full of good and sensible advice), links to this article at Fox Business about leaving your IRA to a trust and the benefits of doing so...

Organ Donation in Great Britain - Opt Out, Not In.

Posted on January 13, 2008
In a move that runs counter to the way we do it on our side of the pond, “Gordon Brown has thrown his weight behind a move to allow hospitals to take organs from dead patients without explicit consent.” Writing in The Sunday Telegraph, the Prime Minister says that such a facility would save thousands of lives and that he hopes such a system can start this year...

Medicare Part D Wins; The Budget Loses

Posted on January 10, 2008
And I’m ok with that. This good news came out in this post from Mr. Keenan at The Connecticut Elder Law Blog. Citing this article in the Chicago Tribune, Mr. Keenan says: Believe it or not, a full year has gone by since the establishment of Medicare Part D (Medicare drug benefit), and after a highly confusing start to the sweeping program, the Chicago Tribune reports in this article that out-of-pocket expenses for patients dropped by 13...

“Decanting” Trusts in Ohio

Posted on January 04, 2008
A recent and interesting development in trust administration has made its way to Ohio, that of allowing a trustee to distribute the assets of one trust into another trust with substantially similar administrative provisions and beneficiaries, called “Decanting...

Ohio vs. The Feds re Expanding Medicaid to Cover More Children

Posted on January 04, 2008
According to this article in today’s NYT “[t]he Bush administration is imposing restrictions on the ability of states to expand eligibility for Medicaid, in an effort to prevent them from offering coverage to families of modest incomes who, the administration argues, may have access to private health insurance...

An Ohio Lawyer’s Duty of Safekeeping Funds

Posted on January 04, 2008
On December 7, 2007, the Ohio Board Of Commissioners On Grievances And Discipline issued Opinion 2007-7 (Word) addressing what duties a lawyers has when holding a client’s funds that the lawyer “knows” may belong to third persons. It is this latter part - the “third persons” part - that is especially vexing for us as fiduciary practitioners because of the potential ethical liabilities that creates...

Trust Beneficiary Rights in Ohio - 3 questions by 3 potential clients

Posted on January 02, 2008
During the course of the last three months I have received three inquiries from potential clients all concerned about the same thing: What right do I have as a beneficiary of a [Ohio] trust? Usually I find the potential client just wants to see a copy of “their” trust but their Trustee is being difficult… This is easily cured...

A Good Example Of Fiduciary Duty - And Of Its Breach

Posted on December 31, 2007
Joel A. Schoenmeyer of The Death & Taxes Blog writes here about an oft-repeated issue: How do you define fiduciary duty? This question is obviously important when a client comes to you alleging that such a duty has been breached. Wikipedia has 11 relationships in which a fiduciary duty is commonly found but then it follows those up with additional “possibilities”… Its not exactly a science...