Payback and Termination of an OBRA ‘93 Trust
An OBRA ‘93 Trust is a trust funded with assets within the legal control of a person with disabilities, and which, at the death of such person, a payback to the state or states that provided medical assistance (Medicaid/Public Aid) paid in accordance with the applicable federal medical assistance program (Medicaid Statutes and Regulations) is…
Avoid Losing Part of Your Trust in a Divorce
The Massachusetts Supreme Judicial Court recently issuedits decision in the highly anticipated case of Pfannenstiehl v.Pfannenstiehl providing clarity to the lower courts on whethera spouse’s interest in a discretionary, spendthrift trust is subjectto division as a marital asset in a divorce proceeding. TheSupreme Judicial Court concluded that the husband’s interest inan irrevocable spendthrift trust, created…
Is WANDRY a Game Changer?
In Wandry v. Comm’r, the U.S. Tax Court, in a case of first impression, paved the way for the use of defined value gift clause formulas. The taxpayers (Joanne and Albert Wandry) transferred to their children and grandchildren a defined monetary gift represented by membership interest units in a limited liability company. The amount of…
Tips For Avoiding Business Litigation
In the movie WarGames, the American military’s supercomputer,Joshua, repeatedly simulates global thermonuclear warfare untildiscovering the futility of it all, observing, “A strange game. Theonly winning move is not to play.” The same can almost alwaysbe said of litigation. For a multitude of reasons, the best way towin a lawsuit is to avoid it from the…
Landmark Case Makes It Easier for Condominium Associations to Recover for Construction Defects
A significant new ruling by the Massachusetts Supreme Judicial Court will make it easier and more lucrative for condominium associations to seek redress for construction defects. The case, Wyman vs. Ayer Properties, LLC, concerned a former mill building which was renovated and converted into a mixed-use condominium. [To see a full copy of the decision,…
Special Needs Trust as Distributee of an IRA or Retirement Plan
If an owner of an IRA or other qualified plan dies, it is important to review all options available. Delay or avoidance of electing payment options can be a very costly mistake. IT IS HIGHLY RECOMMENDED THAT YOU SEEK PROFESSIONAL GUIDANCE BEFORE YOU MAKE ELECTIONS. For many families, the IRA is one of the biggest…
Non-Competition and Other Restrictive Covenant Agreements in Community Association Management: What Are They and Are They Enforceable?
Restrictive covenant agreements are frequently relied upon by employers to restrict the future activities of former employees following their separation from employment. These agreements are sometimes generically referred to as a “non-compete,” but there are three types of restrictive covenants that employers commonly use: Restrictive covenant agreements were originally relied on in the business world…
Damages under Tenant’s Breach of Lease
A recent case held that if a tenant breaks a lease before the lease termination date, the landlord cannot seek damages until the lease period ends, because it is impossible to conclusively determine the damages until that point – even if the landlord re-leases the property – because the second tenant could breach too and…
Homestead: Protection for Your Home
“I hereby declare that I own and am possessed and occupy thepremises as a residence and homestead under MassachusettsGeneral Laws Chapter 188, as amended.” The above is a core statement to be made in a homestead filingand for a Massachusetts homeowner, could preserve equityin his or her residence of up to $500,000. The MassachusettsHomestead Act…