Category: Trusts

HIDING MONEY IN THE UNITED STATES: HOW STATE REPEAL OF THE RULE AGAINST PERPETUITIES GUIDED THE UNITED STATES INTO TAX HAVEN DOMINANCE

The 2017 Tax Cuts and Jobs Act, enacted by the Trump administration, created the largest government-sponsored subsidy for urban renewal through the Opportunity Zones program. This tax expenditure is designed to delay and even avoid capital gains taxes to incentivize development in areas deemed to be in economic distress. While the program’s stated intent is to revitalize neighborhoods, build affordable housing, or promote small businesses, the selection of qualified areas is based on the income rate of residents. That is to say, a subsidy program focused on the physical place improvements has based its designation criteria on local resident’s income. While little academic scholarship has focused on this revolutionary program yet, this note finds that the Opportunity Zone approach to urban renewal likely furthers gentrification, is ripe for abuse, and lacks specificity to help the communities it is intended to serve. These statutory effects are seen clearly in a case study of the Opportunity Zones in Charlottesville, Virginia. In particular, the selection of Zones shows ability to manipulate the program to inappropriately subsidize already-occurring development. In response to the structural issues and the results from the Charlottesville case study, this note further provides a framework of policy solutions for state and local governments, as well as stakeholders, to utilize the opportunity for investment dollars while mitigating the negative externalities.

Webb v. Anderson Children Trust

Abstract Case Name: Webb v. Anderson Children Trust, 1st Dist., Hamilton Nos. C-190600, 2020-Ohio-4975.Jurisdiction: Ohio Court of Appeals for the First District.Plaintiffs-Appellant: Kimberly A. Webb, individually and as beneficiary of the Betty S. Anderson Children Trust.Defendant-Appellees: The Betty S. Anderson Children Trust and Michael R. Webb, individually and as Trustee.Concepts: Standard to prove lack of […]

Sage v. Comm’r

Abstract Case Name: Sage v. Comm’r, 154 T.C. No. 12 (2020).Jurisdiction: U.S.T.C.Petitioner: Jason B. SageRespondent: Commissioner of the Internal Revenue Service.Concepts: NOL; Real Estate; TrustsNature of Case: Whether the Petitioner’s transfer of land into liquidating trusts for the benefit of the parcels’ mortgage holders transferred ownership to the beneficiaries within the meaning of the “grantor” trust provisions? […]

Interview: Nathan Pastor on Barefoot v. Jennings

In February 2020 (read: pre-COVID-19-pandemic and the California shelter-in-place order taking hold), I was lucky enough to sit down with Nathan Pastor (JD ’14, LLM ’16, right) to discuss a case that resulted in a seismic shift in California probate law—Barefoot v. Jennings. The audio recording and transcript of that interview, as well as a […]

Sveen v. Melin

Abstract Case Name: Sveen v. Melin, 138 S. Ct. 1815 (2018).Jurisdiction: Supreme Court of the United States.Plaintiff(s): Ashley SVEEN, et al.,Defendant(s): Kaye MELIN.Concepts: Wills; Trusts; Estate Planning; Revocation-on-divorce statutes; Contracts Clause under the Constitution.Nature of Case: Does the retroactive application of a revocation-on-divorce statute to contracts entered into prior to the enactment of the statute violate […]

N.C. Dep’t of Revenue v. Kimberley Rice Kaestner 1992 Family Trust

Abstract Case Name: N.C. Dep’t of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, 139 S. Ct. 2213 (2019).Jurisdiction: Supreme Court of the United States.Plaintiff/Counter-Claim Defendant: Trustee of the Kimberley Rice Kaestner 1992 FamilyTrust.Defendant/Counter-Claim Plaintiff: North Carolina Department of Revenue.Concepts: Taxation of Trusts.Nature of Case: Whether a State can tax a trust income for the benefit of a […]

Salce v. Cardello

Abstract Case Name: Salce v. Cardello, 2019 WL 6247662 (Conn. Sup. Ct. 2019).Jurisdiction: Superior Court of Connecticut on Appeal from Probate Court.Plaintiff/Counter-Claim Defendant: John Salce, son of decedent, Mae Salce.Defendant/Counter-Claim Plaintiff: Joan Cardello, daughter of decedent, Mae Salce.Concepts: Estate Planning; In Terrorem Clause.Nature of Case: Whether either party violated the in terrorem clause as stated […]

Duncan v. Rawls

Abstract Case Name: Duncan v. Rawls  812 S.E.2d 647 (Ga. Ct. App. 2018).Jurisdiction: Court of Appeals of Georgia.Plaintiff(s): Jenifer Duncan, et al.Defendant(s): Olga Rawls, et al.Concepts: Wills; Trusts; In Terrorem Clause.Nature of Case: Whether and under what circumstances Georgia public policy prohibits enforcement of an in terrorem, or no contest, provision of a trust.Lower Ct. Decision:  […]