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Wednesday, March 14, 2012

T&E Litigation Update - Rivera v. Mackoul; Boyle v. Weiss; Cassell v. Christian Science Board of Directors

Author:
Mark E. Swirbalus, Esq., Day Pitney LLP

The T&E Litigation Update is a recurring column summarizing recent trusts and estates case law. If you have question about this update or about T&E litigation generally, please feel free to e-mail the author by clicking on his name above.

Rivera v. Mackoul


In Rivera v. Mackoul, Case No. 10-P-1663, 2012 Mass. App. Unpub. LEXIS 120 (Feb. 3, 2012), a decision issued pursuant to Rule 1:28, the Appeals Court affirmed a judgment in favor of an estate planning attorney for fees incurred in a will contest, where the will was determined to be invalid pursuant to an agreement for judgment. The executors and heirs of the estate claimed that the attorney's negligence in preparing the will led to the will contest. 
 
The decision is largely devoid of facts, but the Appeals Court expressly relied on the decision in Logotheti v. Gordon, 414 Mass. 308 (1993), where the Supreme Judicial Court held that (1) the mere foreseeability of harm was insufficient to impose a duty owed to potential heirs by an attorney who drafted a will where the potential heirs would be disinherited by the will, (2) the attorney's duty in drafting the will was to the decedent as his client, and (3) the attorney owed no duty to the heirs, who only inherited by intestate succession, because imposing such a duty would create conflicts of interest. The Appeals Court noted that the law in this area is clear in Massachusetts, and further noted that cases in other jurisdictions reaching the opposite conclusion involved a commonality of interest among the testator and all the devisees that has been frustrated by the attorney's failure to achieve the agreed objective of the testator. 
 
Boyle v. Weiss

In Boyle v. Weiss, Case No. SJC-10933, 2012 Mass. LEXIS 33 (Feb. 16, 2012), the Supreme Judicial Court answered the following certified question: "May the holder of a beneficial interest in a trust which holds title to real estate and attendant dwelling in which such beneficiary resides acquire an estate of homestead in said land and building under G.L. c. 188, § 1?" Confining its answer to the 2004 version of the homestead statute, the Court answered NO. 
 
First, under the 2004 version, the beneficiary is not an "owner," as that term is defined in the statute, because she is not a sole owner, joint tenant, tenant by the entirety or tenant in common. Therefore, she holds no direct ownership interest in the property. Second, her beneficial interest in the trust holding title to the property does not indirectly endow her with an ownership interest. Rather, her beneficial interest, which gives her a right to a share of trust income, is a personal property interest. Third, the language in the statute pursuant to which an estate of homestead may be acquired by someone who rightfully possesses the property "by lease or otherwise" does not give the beneficiary, who is occupying the property as a tenant at will, the privilege of claiming a homestead exemption. 
 
Finally, the Court rejected the beneficiary's argument that the 2010 version of the homestead statute, which expands the definition of "owner" to include holders of life estates and holders of beneficial interests, was a mere clarification of the 2004 version. Instead, the Court held that this expanded definition is a change in the law to which the beneficiary could not avail herself, because she filed her homestead declaration one year before the 2010 version went into effect. 
 
Cassell v. Christian Science Board of Directors

In Cassell v. Christian Science Board of Directors, Case No. 11-P-453, 2012 Mass. App. Unpub. LEXIS 173 (Feb. 15, 2012), a decision issued pursuant to Rule 1:28, the Appeals Court affirmed the probate court's dismissal for lack of subject matter jurisdiction. 
 
Plaintiff was excommunicated from the First Church of Christ, Scientist. She filed suit in probate court against members of the church's board of directors, seeking reinstatement and an affirmative injunction that the board "abide by all terms and conditions of the Governing Documents, including the Deeds of Trust and Church Manual." Plaintiff argued that probate court was the proper forum for her complaint because Mary Baker Eddy founded the church as a trust, pursuant to a deed of trust, and thus that the board consists of trust fiduciaries. 
 
The probate court disagreed, and the Appeals Court affirmed, holding that Mary Baker Eddy's deed of trust was for the purpose of conveying land, not to establish judicial policing of church membership. The Court also held that excommunication is a form of internal discipline covered by the "church autonomy doctrine," which provides that both congregational and hierarchical churches are entitled to autonomy over church disputes touching on matters of doctrine, canon law, policy, discipline and ministerial relationships, and that the First Amendment forbids courts from interfering with a church's internal governance or the excommunication of its members.
 
The Boston Bar Association Trusts & Estates Section Blog provides information as a service to its users and BBA members. Neither the Trusts & Estates Section nor the Boston Bar Association are a law firm and do not represent clients in any way. Although the information on this site is about legal issues and informational services it is not legal advice. Use of this blog does not in any way create a lawyer-client relationship. If you need a lawyer, the Boston Bar Association Lawyer Referral Service can refer you to a qualified attorney. http://www.bostonbarlawyer.org/ or call 617-742-0625.

Wednesday, March 7, 2012

IRS Notice 2012-21 Extends Form 706 Due Date for Certain Estates

On February 17, 2012, the IRS released Notice 2012-21, granting a 6 month extension to file Form 706 to qualifying estates that did not file a Form 4768 before the due date. Qualifying estates are those where the decedent died after December 31, 2010 and before July 1, 2011, where the decedent was survived by a spouse, and where the decedent’s gross estate does not exceed $5 million.

In October 2011, the IRS released Notice 2011-82, instructing an executor of a deceased spouse to file a Form 706 within 9 months of the decedent’s date of death in order to make a portability election. As a result of the late date of the Notice, executors of estates where the decedent died in early 2011 did not have the benefit of guidance on electing portability and executors of estates valued at less than $5 million would have had no reason to file a Form 706 or to request an extension to file. Accordingly, executors of qualifying estates, as described above, now have until 15 months after the decedent’s date of death to file a Form 706 if the executor files Form 4768 no later than 15 months after the date of death and references Notice 2012-21 thereon.

Monday, March 5, 2012

March 12th MUPC "Resource Desk" Volunteer Lawyer Training

Trusts & Estates Section members,

As you may know, the Massachusetts Uniform Probate Code, G.L. c. 190B (MUPC), a significant change in Massachusetts probate law and procedure, is slated to take effect on March 31, 2012. While the justices of the Probate Court Department and their staff have worked hard to prepare for the new world of the MUPC, there remains a significant opportunity for those of us who have attended one of the many CLE's last fall to assist the Court during this transition over the next several months.

How can you help?
Members of the BBA, MBA, and attorneys from the Probate Court have been working together to develop ways in which volunteer attorneys can be most useful to the Probate Court, attorneys, and pro se petitioners. As a volunteer attorney you will staff the "MUPC Resource Desks" that will be located in the Probate Court registries around the Commonwealth, including Suffolk, Middlesex and Norfolk Counties. We hope that the Resource Desks in each of the participating registries will be staffed one to two days a week, for at least two hours each day. Volunteer attorneys will answer questions concerning the MUPC that are posed by other attorneys, as well as pro se petitioners, helping them understand the new substantive rules (e.g., identifying heirs at law and persons interested in an estate) and the new Probate Court forms.

Resource Desk Volunteer Training: March 12 at the BBA
In order to make sure we are ready to assist the court and community adequately, we will be conducting a training session at the Boston Bar Association (16 Beacon Street, Boston) on Monday, March 12, from 12:00 PM to 1:30 PM. At the training volunteer attorneys will learn how the "Resource Desks" will be staffed, the questions to expect from attorneys and the public, and various practical issues in connection with the project (e.g., how to sign up, what courts will be participating, etc.). There may be additional training opportunities at a later date, however we encourage you to join us on March 12th if you are available.

For more information and to register for the training session, please click here.

Thank you for your help.

Sincerely,
The Boston Bar Association