The IRS has announced that, under a special new law, donations for typhoon relief in the Phillipines can be deducted on 2013 income tax returns if the donation is made on or before April 14, 2014.
See IR-2014-46 for details.
This is similar to a special law that was enacted following the Haitian earthquake a few years ago.
On March 31, the New York legislature passed Senate Bill 6359 and the identical Assembly Bill 8559, and Governor Cuomo signed them into law, increasing the NY estate tax exclusion from $1,000,000 to $5,250,000 over the next four years. Specifically, the estate tax exclusion will be:
The intention was to bring the NY exclusion into line with the federal exclusion, which was $5,250,000. But the federal exclusion is adjusted for inflation each year, and has changed to $5,340,000 in 2014, so it will certainly be more than $5,250,000 by the time NY reaches that exclusion amount in 2017. DBE
After an account had been filed and before objections, executor petitioned for discovery (specifically interrogatories) from fiduciary of decedent, and court found pre-complaint discovery in civil court analogous and granted petition. Robinson Estate, 4 Fid. Rep. 3d 105 (O.C. Monroe 2014) (Opinion by Williamson, J.)
In petition to remove executor and stop sale of real property for mismanagement, waste, and delay, the court found the executor to be acting reasonably and not wasting or mismanaging estate; petitioners also wanted bond posted as the executor spent a majority of his time out of state, but the court found that the executor’s residence was Pennsylvania and denied bond. Mutchler Estate, 4 Fid. Rep. 3d 107 (O.C. Monroe 2014) (Opinion by Williamson, J.)
Agent under durable power of attorney established irrevocable trust, which denied the right of the principal to the trust’s principal. Principal objected to the trust, and the trust was terminated. Following principal’s death, former agent petitioned to have the trust restored, and the court held that the power of attorney did not explicitly give the power to create an irrevocable trust and that PEF 5603(b) specifically forbids an agent from creating an irrevocable trust, making the trust a legal nullity. In the alternative, the court held that the trust was properly terminated under PEF 5603(b)(2) and that the petitioner is barred by the doctrine of accord, satisfaction or release. Edler Estate, 4 Fid. Rep. 3d 113 (O.C. Lycoming 2014) (Opinion by Lovecchio, J.)
Attorney General Eric Holder has announced that the federal government will recognize the same-sex marriages that were performed in Michigan after the ruling of a federal judge went into effect and before the ruling was stayed, even though Michigan itself will not. This is consistent with the position previously taken on marriages in Utah, and the general recognition by the federal government that same-sex marriages will be given effect if legal when entered into even if the couple lives in a state that does not recognize same-sex marriages. DBE
Agent under power of attorney filed account that included $480,515 in gifts to family, which sister of agent (and one of two beneficiaries under decedent’s will) objected to gifts as beyond the Agent’s power and under Section 5601.2(e) pertaining to prudent estate planning; the court found that all gifts under the federal exclusion proper and all gifts above the federal exclusion dictated by decedent were proper, but a gift by the agent to the agent (Dead Man’s Rule) without third party testimony as to decedent’s intent to gift and use of decedent’s account post death were improper, surcharging the Agent $32,874. Betty J. Fiedler, In re, 4 Fid. Rep. 3d 90 (O.C. Lanc. 2013) (Opinion by Hoberg, J.)
Custodian/mother of minor’s fund held under PA’s Uniform Transfers to Minors Act filed account to which minor’s father filed objections. The court found that custodial funds were properly used to provide for the minor, because the custodian lacked her own funds to pay for the minor’s expenses. Weinberg Estate, 4 Fid. Rep. 3d 86 (O.C. Montg. 2014) (Opinion by Ott, J.)
Disinherited children and grandchildren alleged fraud, undue influence, lack of testamentary capacity, and forgery of probated will, of which a good friend of the decedent was the sole beneficiary. After considerable discovery, sole beneficiary moved for summary judgment, and the court found there was no genuine issue of material fact and granted the motion. Estate of Sheila Curry Sayer, 4 Fid. Rep. 3d 63 (O.C. Del. 2013) (opinion by Kenney, J.), aff’d No. 3150 EDA 2013 (Pa. Super. 4/13/2015) (non-precedential).
Archdiocese of Philadelphia petitioned court to allow rental of church cemeteries to third party company. Court concluded that it had jurisdiction to approve contracts for cemeteries outside of its county, and that rental agreement did not constitute a diversion of property from the purposes, uses, and trusts to which the cemeteries had been lawfully dedicated. Archdiocesan Cemeteries Lease Agreement, 4 Fid. Rep. 3d 76 (O.C. Phila. 2014) (Opinion by Herron, J.)