Latest Post: New Claims Statute for Revocable Trusts

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 […]

Ah Fall!   Halloween candy starts to show up, kids go back to school, the leaves start to change and all the stuff the Maryland General Assembly foisted on us becomes law. This year nestled among the usual prosaic fare is a real gem:   a new code section (Est. & Trusts Art. § 14-116, […]

On June 26, 2013, the United States Supreme Court held in U.S. v. Windsor, 570 U.S. _____ (2013) that the surviving spouse of a same-sex couple was eligible to take the marital deduction on the federal estate tax return (I.R.S. Form 706) and that the federal Defense of Marriage Act (“DOMA”) was unconstitutional to the […]

The Slayer’s Rule arose from common law based on the principle that one should not profit from his or her wrongful act. Although fairly straightforward in theory, the operation and effect of the Slayer’s Rule has not been easy to implement. The vast majority of jurisdictions have a statutory Slayer’s Rule. The Restatement (Third) Prop.: […]

“The key to winning baseball games is pitching, fundamentals, and three run homers.”   Earl Weaver. In law, like baseball, the fundamentals are, well, fundamental.   Piercing the corporate or LLC veil is tough to do in Maryland, if you cross the proverbial “Ts” and dot the “Is”.   A new Court of Special Appeals […]

Death taxes, and political arguments over such taxes, rival death itself as one of life’s certainties. In 21st Century America, of course, the federal estate tax is a perennial political hot potato in most national elections. But didn’t we just resolve the federal estate tax issue by making the last round “permanent?”   Not so […]

As mentioned in an earlier blog, ATRA made two elements of the law in effect for 2011 and 2012 “permanent:” (i) portability, and (ii) the $5 million federal tax threshold amount, indexed.   The indexing results in an effective threshold of $5.25 million for federal estate tax purposes this year. For Marylanders, however, the state […]

THE NEW TAX ACT As you undoubtedly know, the so-called “fiscal cliff” was avoided by the passage of the American Taxpayer Relief Act of 2012 (“ATRA”). The same basic issues, of course, will reappear within the debt-limit/government-shutdown debate coming up in February and March. With the passage of ATRA, the focus of that debate will […]

By referendum, Maryland voters retained the expansion of the definition of “marriage” contained in the 2012 Act to include same sex couples, effective for marriages occurring in Maryland after the first of the year. Even before that vote, Maryland recognized same sex marriages from other jurisdictions. The Court of Appeals recognized an out-of-state same sex […]

When a personal representative or a trustee makes the final distribution to the beneficiaries, they want to be done.   They do not want those beneficiaries raising questions later about the management of the estate or trust.   A common practice is for personal representatives and trustees to require a release before making the final […]