Philadelphia Family Law and Estate Planning Legal Blog

Readers may be aware of the fairly recent news involving the estate of singer Whitney Houston. According to reports citing court documents in the case, attorneys for the estate won a significant victory by reaching an agreement with the IRS to pay $2 million in taxes. The IRS had sought $11 million, alleging that the estate had undervalued the worth of certain Houston assets such as royalties, residuals and the value of her name. A term that applies to many of the items on that list is "intangible assets".

The Houston case and others like it reflect the challenge that intangible assets held by individuals and businesses can present in terms of solid estate planning and probate litigation in Pennsylvania.

Who needs an estate plan? I don't have an estate.

Sadly, this is a widely held misconception, which is why the topic comes up so often in forums such as this post.

The truth is that an estate can be made up of all sorts of things. Big-ticket items, such as your primary residence, your vacation home, a boat or car, count. But small things with sentimental value deserve to be counted as well. Things such as a deceased loved one's wedding or engagement ring and photographs that have special significance can have value And where value is attached, there's reason to include it in an estate plan.

When you buy a product, you have a responsibility to use it as the maker intended and according to instructions provided by the manufacturer. On the other side of the equation, the manufacturer has an obligation to ensure that its product is safe, works as advertised and to educate users. If it does not, there is a risk of injury. If you fall victim to such negligence, you have a right to seek recovery for pain and suffering.

Drugs can have serious side effects. Batteries in electronic devices can explode with harmful consequences. Automotive equipment can degrade to the point of being hazardous and medical devices designed to save your life can kill. Deficient construction can cause injury or death. What follows is a brief review of Pennsylvania law on this issue. To secure maximum possible compensation requires the aid of highly experienced counsel.

In a blog post we wrote in November 2017, we discussed the potential impact that proposed reforms in the Tax Cuts and Jobs Act of 2017 could have on alimony payments.

The act was signed into law last month and includes new rules for alimony, which will go into effect in 2019. More specifically, the new tax law eliminates the deductions for alimony payments and no longer requires alimony recipients to report payments as taxable income.