This blockbuster Adjudication, written by Judge Mark L. Tunnell is 212 pages long, and deals with many issues, but very significantly, with the issue of the appropriateness of attorney, accountant and executor’s fees.  Judge Tunnell’s opinion is very thorough, very organized and very compelling.  Unfortunately it is too long to be printed in the Fiduciary…

Estate of Powell v. Commissioner, 148 T.C. No. 18 (May 18, 2017). Hold on to your seat!  This case has a huge impact on Family Limited Partnership (FLP) planning.  And yes, it creates a new “doughnut hole.” For the very first time, the Tax Court held that where a decedent owned only limited partnership…

If you’re spending your childrens’ money, you are probably breaking the law.  Parents often overstep their authority when dealing with their children’s money as shown in this case:  Werner v. Werner 2016 PA Super 2210. Mother was custodian for two accounts for the benefit of her daughters under the Pennsylvania Uniform Transfer to…

The Supreme Court of Delaware, on appeal from the Court of Chancery has emphatically upheld spendthrift protection in trusts in the case of Mennen v. Fiduciary Trust International of Delaware. The Chancery Court opinion can be found here. The Supreme Court affirmed here . A judgment of $88 million was placed against a trust…

In Koons v. Commissioner  Case No. 16-10646 (4/27/2017) the 11th Circuit denied the interest deduction for interest on loan to pay estate tax. Decedent’s revocable trust included a 70% interest in an LLC which had over $200 million in liquid assets.  The estate’s liquid assets were insufficient to pay the estate tax.  The executors…

 Estate of Agnew v. Ross, 152 A.3d 247 Individuals who are not named in an executed testamentary document do not have standing to bring a legal malpractice actions against testator’s attorney, as purported third-party beneficiaries. In November 2003, the testator Robert Agnew retained defendant-appellant Daniel Ross, Esquire, to draft various estate planning documents.  Over…

 Estate of Agnew v. Ross, 152 A.3d 247 Individuals who are not named in an executed testamentary document do not have standing to bring a legal malpractice actions against testator’s attorney, as purported third-party beneficiaries. In November 2003, the testator Robert Agnew retained defendant-appellant Daniel Ross, Esquire, to draft various estate planning documents.  Over…