An Ohio man appeared in court seeking to reverse the 1994 declaration of his death.
The declaration of death (“Declaration”) resulted from his disappearance from his home eight years earlier. Ohio law prevents a court from reversing such a Declaration after three years from its entry. The Ohio man is seeking to reclaim his social security number in order to obtain his driver’s license and sought reversal of the Declaration in order to do so. The man’s former wife objected to the reversal of the Declaration because their children received Social Security benefits as the result of their father’s death. These amounts would have to be repaid and now there are insufficient funds to do so.
There are so many things that follow in taxation that follow as a consequence of death. The consequences and complications of a reversal of a Declaration are incalculable.
Suppose an estate tax return was filed and a QTIP election was made. Would the rebirth of the decedent obviate the tax return or would the Declaration make this a valid testamentary QTIP as of the time of the election? If the Declaration were reversed caused the How does one deal with the Deceased Spouse Unused Exclusion Amount and portability?
In the Ohio case, the wife was accorded the unmarried status as the result of the Declaration. If the Declaration were reversed and she had already re-married, who is her spouse? Would she be prevented from filing joint income tax returns with her current husband? Is bigamy an issue?
Imagine the uncertainty resulting from the Declaration in Generation Skipping Transfer Tax (GSTT) context. Suppose the Ohio man’s father or mother died and his share of their estate passed in trust to the grandchildren. The predeceased ancestor rule would have moved the grandchildren up a generation because of the Declaration. What would happen if the Declaration is reversed if no GST exemption were allocated to the trust? Would all future distributions to the grandchildren become taxable transfers?
Consider the passing of property under a Will or intestacy. Would a claim arise for the return of the property from a recipient? If the man owned property or partnerships that distributed cash during the eight-year absence and post declaration of death, would the man be entitled to receive an accounting or return of the distributions? If there were mortgages, bank loans and personal guarantees, how does one rearrange history.
The period of time that must elapse before a declaration of death may be declared varies by state; however, it is easy to understand why it is five or more years in most states. The old saying is that the only certainties are death and taxes. Obviously, that is not so in this case.
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
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!
