
James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Author: James F. McDonough
Date: August 6, 2013

Of Counsel
732-568-8360 jmcdonough@sh-law.comThe Court of Appeals for the Third Circuit filed a decision in Capato v. Commissioner Social Security, on July 24, 2013, that highlights the need for a legislative solution in providing benefits under federal programs. The Court held that twins, conceived after the death of their biological father through assisted reproductive technology, were not entitled to Social Security benefits.
The Court reversed a previous ruling in this matter. Social Security legislation enacted in 1939 provided for survivor’s benefits for children of wage earners. The hot-button issue at that time was children born out of wedlock. In the 1960s, children of unwed parents were extended social security benefits survivor’s benefits. The test used to determine if the children were eligible for benefits was whether the children would qualify as heirs of the deceased parent under the laws of the state where the decedent was domiciled at the time of his or her death.
Fast forward to 2013, and a test created in the 1960s operates in an unanticipated manner. In the instant case, the Court ruled that the decedent-father was domiciled in Florida, where state law provides that a child conceived from eggs or sperm of a person or persons who died before the transfer of eggs, sperm or pre-embryos to a woman’s body shall not be eligible for a claim against the decedent’s estate unless the child has been provided for by the decedent’s will. Fla. Stat. Ann §742.17(4). The result might have been different if the decedent-father died in another state. If the twins were born within 300 days of the decedent’s death, New Jersey law would presume the decedent-husband was the father.
N.J.S.A. §9:17-43. There is an issue of fairness where two families, with virtually identical facts, could receive a different outcome for purposes of a federal benefits program because of the differences of law in their respective states of residence. Consider the possibility that the class of heirs may never close if eggs and sperm remain available indefinitely to assisted reproductive technology. Imagine the impact upon the Rule Against Perpetuities, the Generation Skipping Transfer Tax, or estate probate and inheritance.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro

Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins

Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano

Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher

Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher

The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!