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ESTATE PLANNING ALERT: Repeal of the Federal Estate Tax

The failure of Congress to address the federal estate tax before the start of this year has generated a host of major and complex legal challenges for many existing estate plans!

As you likely know from widespread media reports, estates of individuals dying in 2010 will owe no federal tax under the law as it currently stands. But some sentiment has been expressed in Congress to impose a retroactive tax to cover the estates of even those who passed away before any such change in the law has taken effect. Legal challenges to retroactivity are likely to last for years – with no certainty as to outcome. The current law also provides that the federal estate tax will be back in effect on January 1, 2011, with higher rates and lower exemptions.

Due to this uncertainty, our firm is taking the unprecedented step of strongly recommending that everyone review their estate plan immediately to take into account the alternative possibilities of either (a) no federal estate tax in 2010 or (b) enactment of a retroactive estate tax that may be subject to protracted litigation.

Attachment
Repeal of the Federal Estate Tax in 2010 - What Does This Mean for You?
(Spring 2010 Firm Newsletter)

(January, 2010)


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Case Summaries

Family Law

[02/07] Perry v. Brown
In a challenge to Proposition 8, a California ballot initiative approved by the voters amending the state constitution to eliminate the right of same-sex couples to marry, the district court's judgment invalidating the initiative is affirmed, with the following rulings: 1) the proponents of Proposition 8 had standing to bring the appeal on behalf of the State of California, whose people must be allowed to defend in federal courts the validity of their use of the initiative power; 2) however, Proposition 8 violated the Equal Protection Clause of the federal constitution, as the people may not employ the initiative power to single out a disfavored group for unequal treatment and strip them, without a legitimate justification, of a right as important as the right to marry; and 3) the district court properly denied a motion to vacate the judgment, as the trial judge, who had been in a same-sex relationship for ten years, had no obligation to recuse himself or to disclose any personal conflict.

[02/03] In re Gabriel K.
On appeal from an order of the juvenile court declaring minors to be dependent children and denying the request of their mother for reunification services, the order is affirmed, where: 1) the juvenile court's denial of further reunification services to the mother for her younger son was consistent with the legislative intent and thus, fell within the spirit of the reunification services statute; 2) the evidence before the juvenile court supported its conclusion that the mother failed to make reasonable efforts to treat her drug issues; and 3) the mother demonstrated no basis for setting aside the juvenile court's decision to deny reunification services.

[02/02] Southerland v. City of New York
In a suit under 42 USC Section 1983 asserting that a New York City children's services caseworker entered the plaintiffs' home unlawfully and effected an unconstitutional removal of children into state custody, the district court's grant of summary judgment to the defendant caseworker is: 1) affirmed with respect to the dismissal of the father's substantive due process claim; but 2) vacated with respect to the father's and his children's Fourth Amendment unlawful-search and Fourteenth Amendment procedural due process claims and the children's unlawful-seizure claim, where the district court wrongfully concluded that the caseworker was entitled to qualified immunity with respect to all of the claims against him.

[02/02] Marriage of Walker
In a family court proceeding in which the recipient of a California State Teachers' Retirement System (CalSTRS) disability allowance challenged earlier family court orders awarding a community property interest in the allowance to his former spouse, the family court's denial of the appellant's motion to set aside the earlier orders is reversed, where the family court erred as a matter of law in concluding that the recipient had made "no mistake" in agreeing that his spouse had a community property interest in his disability allowance and thus should not have denied his motion on this basis.

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