Justia Government & Administrative Law Opinion Summaries

Barry Ackerley died in 2011. In 2008 and 2010, Ackerley made substantial gifts of money. On these inter vivos gifts, Ackerley paid the required federal gift taxes, which amounted to over $5.5 million. Upon his death, Ackerley was required under the federal estate tax code to include the value of the gift taxes paid in his federal taxable estate because he died within three years of making the gifts. Ackerley's estate thus included the gift taxes in its federal estate tax return. But when Ackerley's estate filed his Washington estate tax return, it did not include the $5.5 million in federal gift taxes paid as part of the Washington taxable estate. The Department of Revenue issued a notice of assessment, notifying Ackerley's estate that it owed additional Washington estate taxes on the amount of federal gift taxes paid. The Estate and Transfer Tax Act, chapter 83.100 RCW, made clear that calculating a Washington taxable estate begins with the federal taxable estate and that the Washington definition of "transfer" is the same as the federal definition. Under federal estate tax law, the gift tax paid is included in the taxable estate under the "gross-up rule" and, as such, is transferred upon death as part of the entire estate. Following the legislature's clear mandate, the Washington Supreme Court must also find that the gift tax paid is part of the Washington taxable estate and transferred upon death as part of the entire estate. Thus, the DOR properly included the gift tax paid in its assessment of Ackerley's estate. View "Estate of Ackerley v. Dep't of Revenue" on Justia Law

Bank of America, N.A., in its capacity as a corporate trustee of several inter vivos trusts, applied for abatement of fiduciary income taxes paid by thirty-four inter vivos trusts. The Commissioner of Revenue denied the applications. The Bank appealed, arguing that, where the Bank was not domiciled in Massachusetts, these trusts did not qualify as “resident inter vivos trusts” and therefore were not subject to fiduciary income tax under Mass. Gen. Laws ch. 62, 10. The Appellate Tax Board upheld the Commissioner’s decision, concluding that the Bank, in its capacity as trustee, was an inhabitant of the Commonwealth within the meaning of Mass. Gen. Laws ch. 62, 1(f) and 10(c). The Supreme Judicial Court affirmed, holding that the Board did not err in ruling that the Bank was subject to the fiduciary income tax imposed by section 10. View "Bank of America, N.A. v. Comm’r of Revenue" on Justia Law

Plaintiff, the beneficiary of a testamentary trust, entered a long-term care facility in 2012, at which time she applied for financial and medical assistance under Medicaid. The Department of Social Services denied the application for Medical benefits, finding that Plaintiff’s assets, including the trust, exceeded the relevant asset limits. A hearing officer upheld the department’s denial. Plaintiff appealed, arguing that the trust was not an asset available to her as defined by relevant Medicaid regulations. The trial court dismissed Plaintiff’s appeal. The Supreme Court reversed, holding that the testator intended to create a discretionary, supplemental needs trust and, therefore, the trust corpus and income may not be considered to be available to Plaintiff for the purpose of determining eligibility for Medicaid benefits. View "Pikula v. Dep’t of Social Servs." on Justia Law

Appellant Helen Wilson was an elderly woman residing at the Palmer Pioneer home with her husband. Helen previously lived in her own house but was unable to manage her medications and nutrition independently. Her son and grandson lived with her but were unable or unwilling to help. After Adult Protective Services received several reports of harm, a temporary emergency guardian was appointed for Helen; the guardian placed her in an assisted living facility and then in the Pioneer Home. Despite her limited financial means, Helen continued to support her son and grandson, who remained in her house. The master observed that Helen needed help managing personal care because she “was previously unable to maintain the level of necessary care prior to the petition being filed” and her family had previously “interfered with [personal care assistants].” And the master found that Helen needed assistance applying for benefits and managing her assets due to her “limited math abilities,” “age-related cognitive decline,” “tendency to give away more money than she can afford,” and “extremely tight budget,” which made “[h]er ability to receive benefits . . . a major factor in maintaining her current level of independence.” Accordingly the master gave the guardian authority to provide for Helen’s personal care, apply for insurance and government benefits, and“control [Helen’s] estate and income . . . to pay for the cost of services that the guardian is authorized to obtain on behalf of [Helen].” He recognized that Helen should be free to give away her discretionary income, but that she needed “a partial guardian [to] ensure that she only gives money away after her own necessities, including adequate nutrition, medication, and housing costs, have been met.” Before the superior court ruled on the master’s recommendations, the public guardian filed a motion for sale of Helen’s residence to help defray costs required to meet her daily needs. Helen appeals the appointment of a partial public guardian and full conservator, particularly for their role in making decisions on her behalf, and for selling her house. Finding no reversible error, the Supreme Court affirmed. View "Wilson v. Alaska Dept. of Law" on Justia Law

Appellant Kerry McCarty, as executrix of the Estate of Ruth C. McCarty, appealed a circuit court order denying her motion to dismiss the claim of the New Hampshire Department of Health and Human Services (DHHS) for repayment of medical assistance provided to the decedent through the State's Medicaid program. She argued the court erred by concluding that DHHS's claim was not barred by the statute of limitations. Finding no reversible error, the Supreme Court affirmed. View "In re Estate of Ruth C. McCarty" on Justia Law

Brooklyn Coons (called "Brook" by her estate) died from being shaken and possibly struck on the head while in the care of her father's girlfriend. Her estate, the remaining plaintiff in this case, alleged that Defendant Linda Gillen, a social worker, knew that Brook was in danger and subject to abuse but did not respond to reports of the abuse, increasing Brook's vulnerability to danger. The estate sued Defendant under 42 U.S.C. 1983 for violating Brook's right to substantive due process. The district court granted Defendant summary judgment, holding that she was entitled to qualified immunity because she did not take any affirmative action that increased the child's vulnerability to danger and because there was no clearly established law that her alleged conduct violated Brook's due-process rights. Finding that Defendant’s conduct was not a violation of clearly established law, the Tenth Circuit affirmed. View "Estate of B.I.C., et al v. Gillen" on Justia Law

Andre Leonti, a resident of Fayette County, died intestate in 2006. Thereafter, Cheryl Keefer, a purported friend of Decedent, filed a petition with the Register for the grant of letters of administration which listed the heirs and personal assets of Decedent as "unknown" and indicated that there was no real estate. The Register refused to grant letters to Keefer because she did not have Decedent's death certificate, was not his next of kin, and, therefore, was not a person entitled to letters. Keefer, through her attorney, filed a petition to authorize the Register to issue letters to her without producing a death certificate and further directing the Mon Valley Hospital to release the Decedent's remains for a funeral and burial. Keefer attached a purported copy of a power of attorney executed by Decedent. No one contested this petition, and, on the same day the petition was filed, the orphan's court issued an order authorizing and directing the Register to issue letters "without the necessity of requiring a death certificate," and further ordering and directing the Hospital to release Decedent's remains to Keefer for funeral and burial. In compliance with this order, the Register issued letters to Keefer, but did not secure a bond from her. Several months later, Keefer filed with the Register an inventory of the estate. One month later, Appellee Elvira Dorsey, a resident of Texas who claimed to be Decedent's niece, became aware of Decedent's estate, and alleged she was the sole surviving heir of Decedent. Appellee petitioned for Keefer's removal as administratrix. The orphan's court granted Appellee's petition, issued an order, and required Keefer to deliver to Appellee the custody and possession of Decedent's estate's assets. Keefer, however, did not deliver the assets of the estate to Appellee. The orphan's court issued an order holding Keefer in contempt, sentencing Keefer to six months imprisonment, and directing that a verdict be entered in favor of Appellee and against Keefer in the amount of $192,769.19. Appellee filed praecipes for entry of judgment with the Fayette County Prothonotary and the Register to enter judgment against Keefer. Appellee then filed a complaint against the Register, individually, and Western Surety Company, alleging that the Register and Surety were liable for damages resulting from the Register's failure to secure bonding, which, Appellee asserted, was required by law. In this appeal by allowance, the primary issue this case presented to the Supreme Court was the applicability of governmental and official immunity with respect to a claim alleging a violation of bonding requirements mandated under the Probate, Estates and Fiduciaries Code ("PEF Code"). Ultimately, the Court held that the General Assembly intended that 20 Pa.C.S.A. 3172 created a targeted form of accountability for such registers, resting outside the scope of governmental and official immunity. Therefore, the Fayette County Register of Wills was not immune under the Tort Claims Act from liability for an alleged violation of Section 3172. The case was remanded back to the orphan's court for an assessment of the applicability of the the immunity defense, and for a more developed factual record. View "Dorsey v. Redman" on Justia Law

The Boys and Girls Clubs of South Alabama, Inc. ("BGCSA"), sought a writ of mandamus to order the Baldwin Circuit Court to dismiss a declaratory-judgment action filed against it and The Community Foundation of South Alabama by the attorney general of Alabama, Fairhope-Point Clear Rotary Youth Programs, Inc. ("Rotary Inc."), and Ruff Wilson Youth Organizations, Inc. ("Wilson Inc.") In 1996, B.R. Wilson, Jr., one of the incorporators and a principal benefactor of BGCSA, executed a deed transferring to BGCSA approximately 17 acres of real estate. Contemporaneously with the execution of the deed, Wilson gave a letter to BGCSA that stated Wilson's intentions and stipulations concerning his gift of the property. The letter stated that BGCSA was "'free to ultimately dispose of this property,'" but that it was Wilson's "'desire and understanding that [BGCSA] will use the proceeds from any such disposition for [BGCSA's] facilities and/or activities in the Fairhope–Point Clear area.'" Wilson died in 1997. In 2010, the Eastern Shore Clubs filed an action in the Baldwin Circuit Court seeking declaratory and injunctive relief against BGCSA. The Eastern Shore Clubs alleged that BGCSA "ha[d] used," or, perhaps, was "anticipat[ing] using," the proceeds from the sale of the property for its own operations, rather than for the benefit of the Eastern Shore Clubs. In 2012, the Baldwin Circuit Court entered a judgment concluding Wilson's intent was that the Wilson funds should be used for the "exclusive benefit of the Fairhope and Daphne Clubs." The Baldwin Circuit Court ordered the disbursal of the remainder of the Wilson funds. This case was the third action that has come before the Supreme Court arising out the dispute between BGCSA and the Eastern Shore Clubs over the Wilson funds. The Supreme Court concluded Section 6-5-440 compelled dismissal of this case because another action involving the same cause and the same parties ("the Mobile action") was filed first. Therefore, the Court granted the petition for a writ of mandamus and directed the Baldwin Circuit Court to vacate its most recent order in this case, and to enter an order dismissing this case. View "Alabama et al. v. Boys And Girls Clubs of South Alabama, Inc." on Justia Law

The State of Alabama, the Alabama Department of Finance, and the Comptroller of the State of Alabama, nonparties to the underlying action, appealed a circuit court order denying the State's motion to intervene as of right. Mrs. Frances Ann Yarbrough died intestate with no heirs that were in the line of descendant distribution. As a result, her assets escheated to the State of Alabama. The Supreme Court ordered the Estate to pay certain expenses of the Estate, and then to pay the balance of the Estate's funds to the State of Alabama. In that same order, the Court ordered the State of Alabama to pay the escheated funds to the St. Clair County's Circuit Clerk's office to be used by the Clerk 'to rehire some of the employees lost to proration.' The State, through its counsel Mr. Bledsoe, stated that the Estate's escheated funds must be used or applied in furtherance of education in accordance with the Alabama Constitution.Through counsel, Mr. Bledsoe, declared that there was no objection to disbursing the Estate's escheated assets to the Pell City Board of Education and the St. Clair County Board of Education. Based on that representation, the Estate moved the Supreme Court to Alter, Amend, or Vacate its earlier order to direct the State to pay the Estate's escheated assets to the Pell City Board of Education and the St. Clair County Board of Education. The State objected to the Supreme Court's order. In turn, the Supreme Court treated the objection as a Motion to Alter, Amend, or Vacate, filed it with the circuit clerk, and set the matter for a hearing. Because the State was not a party to this matter, the State did not receive direct notice of the hearing. The Estate's counsel, Ms. Williams, however, provided the State notice of the hearing by e-mail to Mr. Bledsoe. The State did not appear at the hearing, and the Supreme Court denied the relief requested by the State. The circuit court then denied the State's motion to intervene. Because the circuit court failed to follow the Supreme Court's order, it reversed the circuit court's order denying the State's motion to intervene. "The circuit court exceeded its authority in attempting to appropriate the escheated funds." All issues having been decided on both the motion to intervene and the underlying action, a judgment was rendered for the State. View "Alabama et al. v. Estate Yarbrough" on Justia Law

Charles Kemp attempted suicide while in administrative segregation at the Anchorage Correctional Complex. He survived but suffered a serious brain injury. His mother, Marjorie Achman, sued the Alaska Department of Corrections (DOC), alleging both a negligent failure to protect Kemp from self-harm and medical malpractice. The superior court granted summary judgment to DOC and awarded attorney’s fees to DOC as the prevailing party. Achman appealed that decision. Finding no reversible error, the Supreme Court affirmed. View "Achman v. Alaska" on Justia Law