On May 7th, the Appellate Division of the New Jersey Superior Court issued a decision regarding the case of Orlowsky v. Orlowsky. The Court ruled that federally-protected retirement plans can be invaded in order to pay child support, college tuition, and attorney and expert fees. For the full case opinion, click here. Download the full … Continue reading John S. Eory, Appellate Court Permits Invasion of Retirement Accounts to Enforce Child Support Orders
The case of Anthony Hugger v. Lawrence J. Warfield et al. reveals the danger of not carefully tracking days before filing for bankruptcy if you seek to discharge taxes. Mr. Hugger received his discharge in May 2017 after filing a chapter 7 bankruptcy case, only to realize in September 2017 that he had filed too … Continue reading Fogg (Procedurally Taxing), Count Days BEFORE Filing for Bankruptcy
The recent Eleventh Circuit decision on Yerian v. Webber confirmed a judgement that Keith Yerian's self-directed IRA could go to his creditors. According to Peter J. Reily, the judgement is a "big deal" considering the Individual Retirement Account's role both as a tax vehicle allowing an immediate detection and tax-deferred growth or tax-free growth and … Continue reading Peter J. Reily, Florida Man Blows IRA Bankruptcy Protection
In December 2018, various offshore jurisdictions such as Bermuda, the British Virgin Islands (BVI), the Cayman Islands and the Crown Dependencies (Guernsey, Jersey and the Isle of Man) introduced economic substance legislation in response to requests from the European Union. If the jurisdictions did not introduce the new rules, they faced the possibility of being … Continue reading Jennifer Smithson et al. (Macfarlanes), Economic substance – application to trust structures – Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey
Jay Adkisson has summarized the Cleopatra Cameron Gift Trust cases dealing with the enforcement of a California child support order against a South Dakota Trust. Mr. Adkisson's article begins as follows: Through the gifts and subsequent death of her father, California resident Cleopatra Cameron ended up as the beneficiary of two trusts (collectively, the Trust) … Continue reading Adkison, California Child Support Order Not Enforced Against South Dakota Trust In Cleopatra (June 27, 2019).
In Slone v. Commissioner, the Ninth Circuit held that the former shareholders of a broadcasting company were liable for the company's taxes. The asset and stock sale lacked economic substance beyond tax avoidance. Also, reasonable actors in the shareholders' position should have known that the buyer never intended to pay the taxes. Thus, under state … Continue reading Slone v. Commissioner: Shareholders Liable as Transferees, Distribution Was Fraudulent Transfer
Kenneth C. Kettering, has made available for download his article, "The Comments to the Uniform Voidable Transactions Act Relating to Self-Settled Spendthrift Trusts are Correct," published in Tax Management Estates, Gifts, and Trusts Journal, vol. 42, no. 5 (Sept./Oct. 2017). The Abstract is as follows: The comments to the Uniform Voidable Transactions Act (formerly named the Uniform … Continue reading The Comments to the Uniform Voidable Transactions Act Relating to Self-Settled Spendthrift Trusts are Correct by Kenneth C. Kettering