This Section and its working committees (Guardianship / Conservatorship Project and Elder Law) deal with all issues relating to estate planning and the probate of decedents' estates, the avoidance of probate, and the protection of incompetents and their assets through guardianships and conservatorships.

Beverly Hills Bar Association Legislative Updates California Court of Appeal

Estate of Goyette (2004 SOS 5539) Decedents’ Holographic will left “my money” to one beneficiary and the residuary to another. Decedents assets included cash, CD’s, Treasury Bills, Money Market Accounts, Government Reserve Funds. Issue – which are “my money” and which belong to the residuary beneficiary. The court held that the INTENT of “my money” would include all “financial assets” and none passed to the residual beneficiary. Estate of Turner USCA 03-3173 IRS’s newest victory on overturning FLP on §2036 grounds. Same old bad Facts Different Day. A securities partnership with a corporate GP. The decedent transferred almost all of his liquid assets to the FLP, leaving him with insufficient means to pay for his personal expenses. The tax court invalidated the FLP since, given his live expectancy he did not retain enough money to support himself. Menard, Inc. v Commr 2004 TCM 207 Corporation paid its CEO/Owner salary plus 5% profits. For 1998, this was $20 million. The IRS’s auditor found this to be excessive and found part as a constructive dividend. The corporation quoted §1.162-7 which is presumption of reasonableness. The Tax Court looked at the Independent Investor Test which looks at the compensation of CEO’s of publicly-traded companies for similar duties. As a result, the Tax Court agreed with the IRS and held that it was a disguised dividend but allowed $7 million of fair compensation.