Latest Post: Tenants-By-The-Entirety and Federal Tax Liens Revisited

A recent Maryland tax court case increased a widow’s death taxes by over $400,000 because she relocated from Michigan to Maryland after her husband’s death and was the beneficiary of a QTIP ¹ trust created in Michigan. The facts in Taylor v. Comptroller, 2015 WL 530 5936 (Md. Tax)(9/3/15), are simple: prior to Mr. Taylor’s […]

Estates & Trusts § 1-208(b) provides a rule to determine the paternity of a child born to unmarried parents. The statute declares that the child is the child of the mother but is considered the child of the father if certain circumstances exist. One such circumstance is if the purported father subsequently marries the mother […]

By Fred Franke Franke, Sessions & Beckett LLC Maryland courts and commentators traditionally recommend against joint wills. Shimp v. Shimp, 287 Md. 372 (1980) (Footnote 1: “… (joint wills) are more apt to invite litigation than separate independent reciprocal wills.”) Indeed, the Court of Appeals hoped that its decision, “will discourage the use of such […]

By Fred Franke Franke, Sessions & Beckett LLC Effective October 1, 2015, the Maryland Trust Act provides statutory limitations on the presentation of claims against the decedent’s revocable trust. Current statutory law does not address this issue. Many assumed that the general claims statute of Estates and Trusts §8 – 103 applied. Others believed that […]

A U.S. District Court case is a useful reminder that a personal representative can become personally liable for the decedent’s income tax debt. Although a slam-dunk for the IRS, the case highlights how to preserve funds for the family allowance and/or administrative expenses and, more importantly, how not to become individually liable for the tax […]

This is a “heads-up” to an important development that may impact your practice. Maryland Rule of Professional Conduct 7.4 generally precludes a lawyer from holding himself or herself out as a specialist. [The exception being for patent attorneys.] This rule is undoubtedly unconstitutional. The “granddaddy” of lawyer advertising cases is, of course, Bates v. Arizona, […]

A recent, and controversial, bankruptcy case permitted a creditor to take assets in a trust despite the spendthrift clause. This decision has caused quite a stir in the estate planning/asset protection community. Whether such a reaction is justified depends on how one interprets the decision. In the case, a mother established an inter vivos trust […]

The Court of Appeals recently took the “opportunity to more clearly illustrate when and how” the testamentary exception to the attorney-client privilege applies. Zook v. Pesce, 438 Md. 232, 91 A.3d 1114 (05/16/14). In that case, the decedent, Mr. Zook, left his 3 children equal one-third shares of the property in his “living” trust. Two […]

The 2014 General Assembly outdid itself by passing significant estates and trusts legislation. One major enacted change increased the Maryland estate tax threshold.   Although the federal estate tax threshold is $5 million indexed for inflation (currently $5.34 million), the Maryland estate tax threshold has held steady at $1 million for over a decade.   […]

Recently, a state appellate court decided the first reported case in the United States involving the role of a “trust protector.” Many modern trusts provide for a trust protector in addition to a trustee.   The concept originated with offshore asset protection trusts as a hedge against ceding complete control to a foreign trustee.   […]

A new Court of Appeals case illustrates a general maxim: It is not pretty when the world of estates and trusts collides with that of family law. By statute, a divorce voids any will provision benefitting a former spouse “unless otherwise provided for in the will or decree.” Est. & Trusts § 4-105(4).   The […]

We are, hopefully, limping back from the Great Recession.   It is no surprise that fiduciaries (trustees and personal representatives) face difficult challenges in managing assets during the downturn and that those challenges continue. Against this backdrop comes a significant case from the Court of Special Appeals examining the power of the Circuit Court to […]