Wealth management update *

USA - June 1 2012
The June § 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 1.2%.

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New York and Florida joins sixteen other states in enacting formula clause fixes *

USA - September 7 2010
State legislatures are catching the ball that the Federal legislature dropped in permitting the Federal estate and generation-skipping transfer ("GST") taxes to lapse in 2010.

Co-authors: Henry J. Leibowitz.

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Florida enacts new Florida statutes Section 736.0902, non-application of prudent investor rule, that limits duties and liabilities of trustees with respect to life insurance *

USA - September 7 2010
Florida has enacted a new statute that virtually eliminates trustee liability with respect to (1) insurable interest issues related to the ownership of life insurance and (2) investing in life insurance policies.

Co-authors: Henry J. Leibowitz.

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New Jersey Federal District Court finds that the IRS abused its discretion in disallowing extension of time to file estate tax return *

USA - September 7 2010
In Estate of Proske v. United States, Civil Action No. 09-CV-670 (DMC) (USDC D.N.J. May 25, 2010), the New Jersey District Court found that the IRS abused its discretion in disallowing the estate an extension of time to file its Federal estate tax return.

Co-authors: Henry J. Leibowitz.

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New York Court of Appeals finds that legal fees incurred by fiduciaries in the defense of actions related to an estate or trust are to be equitably allocated among beneficiaries *

USA - September 7 2010
In Matter of Hyde, 2010 NY Slip Op 05676 (June 29, 2010), the New York Court of Appeals held that New York Surrogate's Court Procedure Act ("SCPA") Section 2110 "grants the trial court discretion to allocate responsibility for payment of a fiduciary's attorney's fees for which the estate is obligated to pay either from the estate as a whole or from shares of individual estate beneficiaries."

Co-authors: Henry J. Leibowitz.

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