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Nysba Summer 2002 | Vol NYSBA SUMMER 2002 | VOL. 35 | NO. 2 Trusts and Estates Law Section Newsletter A publication of the Trusts and Estates Law Section of the New York State Bar Association A Message from the Section Chair It is an honor, privilege Bono Service Award for his September 11-related and pleasure to chair one of efforts and accomplishments. Our ad hoc committee the most productive, hard- on the new Principal and Income Act (with its uni- working and respected Sec- trust component), chaired by Arthur Bongiovanni, tions of the New York State has recently labored on the technical corrections to Bar Association. the Act, which the EPTL-SCPA Legislative Advisory Committee has considered, and will continue to The work of our Section work on any possible future changes in the Act. Our is based upon the committee Technology Committee, chaired by David Goldfarb, system which is very unique is working with the Bar Association in creating a list in its open membership and service for our expanded Executive Committee and unlimited term of service. Any member of the Section can serve on any one or more committees of such member’s choice and serv- ice on any committee can last as long as the member Inside chooses to serve. The Section’s 17 standing commit- tees, which are listed on p. 61 of this Newsletter, are Editor’s Message........................................................................3 diverse and reflect the varied, complex and extensive Disqualification of a Parent—Proposed Legislation ............4 nature of our practice and interests. The committees, (Staci A. Graber) in general, propose affirmative legislation, prepare Irrevocable Life Insurance Trusts: and submit reports on legislation proposed by other Planning Opportunities and Considerations groups, research and publish scholarly reports and After the Trust Is Executed ................................................9 articles, conduct surveys, as well as assist in the (Georgiana J. Slade) preparation and presentation of our Section’s Spring Retirement Plan Assets in Bankruptcy ................................40 and Fall seminars and the many continuing legal (David A. Pratt) education programs and publications sponsored by Of Murder (and Estates and Trusts), She Wrote ................46 the Bar. Members of the committees meet at the (John G. Grall) Annual, Spring and Fall Meetings of the Section and Common Preparer Errors on Form 706................................49 throughout the year depending on the particular project. Recent New York State Decisions ........................................50 (John C. Welsh) Our Section also works through special ad hoc Case Notes—Recent New York State Surrogate’s committees, one of the most productive being the and Supreme Court Decisions..........................................53 Hot Docs® project spearheaded by Wallace Lein- (Ilene Sherwyn Cooper and Donald S. Klein) heardt, in conjunction with Matthew Bender, from Scenes from the Trusts and Estates Section which we have all benefited. Our congratulations to Spring Meeting ..................................................................60 Wally on his being honored with the Bar’s 2002 Pro Section Committees & Chairs ................................................61 ® NYSBA perhaps the entire Section as well as many other proceedings; Gary Carpenter, a Syracuse accountant, technological advances of benefit to our membership. covered the opportunities presented by section 529 plans and alternative educational savings plans; and We urge any member who wishes to serve on a the program ended with Georgiana Slade’s thorough committee to contact either the chair of the commit- presentation on planning opportunities and consid- tee or me. erations after execution of an irrevocable life insur- Our Spring Meeting in Binghamton had the ance trust. greatest attendance in recent years, which is to the We look forward to our Fall Meeting in Boston credit of our exceptional program chairs, Michael H. from October 3–6, 2002, where Gary Freidman and Zuckerman and Kathryn Grant Madigan. Susan Barbara Levitan, as Co-Chairs of the program, have Frunzi provided insight into the complexity of plan- assembled a stellar panel of speakers dealing with ning in view of the potential repeal of the estate and administering the problem estate. We have planned generation-skipping transfer taxes; Richard Rothberg dinners at the JFK Library and Museum and the gave an amusing and informative talk on drafting for Boston Museum of Fine Arts as well as our famous the new Principal and Income Act and the Unitrust; tennis and golf tournaments. I hope to see you all John Spitzmiller spoke on recent estate and trust there. developments; our luncheon speaker, former Section Chair, Surrogate Eugene Peckham provided impor- Arlene Harris tant advice on planning after disability and Article 81 Upcoming Meetings of Interest October 3–6, 2002 New York State Bar Association Trusts and Estates Law Section. Fall Meeting. Boston, Massachusetts. October 29–30, 2002 “Probate and the Administration of Estates” New York State Bar Association. Seven locations throughout the state. It is an evening program run- ning from 5:30–9:30 p.m. each day. September 11–14, 2003 New York State Bar Association Trusts and Estates Law Section. Fall Meeting. Victoria, British Columbia. October 2004 New York State Bar Association Trusts and Estates Law Section. Fall Meeting. Savannah, Georgia. 2 NYSBA Trusts and Estates Law Section Newsletter | Summer 2002 | Vol. 35 | No. 2 Editor’s Message I am very apprecia- Law Section on the NYSBA Web site. This was part tive of all of the authors’ of the NYSBA process of redesigning its Web site and efforts which resulted in providing other related services to its members. The this issue on varied top- new site is a state-of-the-art member resource with ics. systems for homepage personalization (MyNYSBA pages), newsletter management, content manage- This issue includes a ment, discussion groups, members-only Section very detailed article on extranet management, direct third-party content planning considerations delivery, and e-commerce shopping cart technology. after the creation of a life As part of direct third-party content delivery, insurance trust, which Loislaw is providing extra functionality to the Trusts Georgiana J. Slade has and Estates Law Section’s Web site via its LawWatch written for us. Georgiana program. There are plans for online notification to is well versed in this area and is an author of the Section members of new case law (and possibly leg- BNA portfolio on the topic which so many of us use. islative) developments. The Technology Committee David Pratt, who is the Chair of the Life Insurance will be working to design the proper search terms for and Employee Benefits Committee, has written on this function. The NYSBA Web site also has “individ- the topic of bankruptcy and the effect on retirement ualized” Web pages. Members are “tagged” accord- assets. It is a very interesting article which has appli- ing to their areas of interest (Section membership, cation in today’s economic climate. A bill regarding geographical interests) and the tagging of content disqualification of an abusive parent from inheri- allows for the creation of corresponding dynamically tance has been proposed. It is aptly described in an created category-specific Web pages matched to article by Staci Graber and I thank her for taking the members’ particular interests. The Technology Com- time to write. I understand that the legislature may mittee will be developing individualized information expand coverage to exclude any parent whose that the Section would want to provide to our mem- parental rights have been terminated. A new and dif- bers. If any of you are computer persons, David can ferent entry for this Newsletter is John Grall’s topical always use help to complete the projects undertaken book review of the novelist, Sarah Caudwell. Many by the Committee. of her murder mysteries involved London barristers and tax planning. Summer will pass all too quickly, but remember that October brings the Fall Meeting of the Section. Most issues of the Newsletter include a descrip- We will meet in Boston. The program promises to be tion of one of different committees of the Section for enlightening, and Arlene Harris has arranged for your consideration. The success of this Section is dinner in the new Jackie Wing of the J.F. Kennedy due, in part, to the activities of its many standing Library and a cocktail reception at the Museum of committees. In this issue, David Goldfarb, who is Fine Arts. Sports are also being included. Tennis and Chair of the Technology Committee, has advised me golf have been reserved. Mark your calendars for of its projects. October 3–6 and join us in Boston. The Technology Committee worked on the Magdalen Gaynor redesign of the Web page for the Trusts and Estates Notice The American Red Cross is preparing to issue flat gift payments of $45,000 to each of the estates of those killed as a result of the September 11 attacks and has asked for this notice to be sent to those who could provide the infor- mation the American Red Cross needs to reach every estate of those killed in the attacks. Specific information about the executors/executrixes and/or representatives of these estates can be sent to: Daniel Zellman Financial Assistance Program American Red Cross 100 Varick Street New York, NY 10013 [email protected] (212) 875-2019 NYSBA Trusts and Estates Law Section Newsletter | Summer 2002 | Vol. 35 | No. 2 3 Disqualification of a Parent—Proposed Legislation By Staci A. Graber Under the current state of the law, an abusive Social Services Law § 384-b (SSL) and the child was parent, whose rights have been legally terminated by permanently removed from the home due to abuse. a court of competent jurisdiction, is not precluded The proposed amendment to EPTL 4-1.4(a)(2) seeks from inheriting from his or her child’s estate. New to include abuse as grounds for disqualification to York’s Estates, Powers & Trusts Law 4-1.4 (EPTL) preclude an abusive parent from sharing the right of provides for disqualification of a parent who fails or inheritance under such circumstances.
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