Florida Probate & Trust Litigation Blog

Florida Probate & Trust Litigation Blog

By Juan C. Antúnez of Stokes McMillan Antúnez P.A.

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Category Archives: Trustees In Hot Water

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US SCT: Supreme Court rules that general stock picking advice is subject to 2 percent-of-AGI floor but specialized fiduciary advice is fully deductible

Posted in Trustees In Hot Water
Knight v. C.I.R. , — S.Ct. —-, 2008 WL 140749 (U.S. Jan 16, 2008) In an opinion that will have significant implications for every estate or trust paying U.S. income taxes, the Supreme Court has just ruled on the level of deductibility Internal Revenue Code Section 67(e)(1) permits for trust investment advisory fees (IAFs). The … Continue Reading

Bank’s Opening of Safe-Deposit Box Leads to Trial on Missing Cash Claim

Posted in Trustees In Hot Water
Opening safe-deposit boxes is a part of most probate administrations.  Banks are usually sticklers for protocol, which is understandable given their liability exposure if anything goes wrong.  Fortunately, Florida has a detailed statutory scheme governing access by fiduciaries to safety deposit boxes (see F.S. 655.93 – F.S. 655.94 and F.S. 733.6065). Wachovia is learning the … Continue Reading

$111,000+ OOPS! for Wachovia Bank

Posted in Trustees In Hot Water
Wachovia Bank, N.A. v. U.S., — F.3d —-, 2006 WL 1912805 (11th Cir.(Fla.) Jul 13, 2006) For trust and estates lawyers this case is a good example of how NOT keeping track of minor details — like a client paying federal income tax on a tax-exempt charitable trust for 10 years – can lead to lively appellate opinions (interesting for … Continue Reading

Corporate Trustee under Fire: Failure to Diversify J.M. Smucker Company Stock Holdings

Posted in Trustees In Hot Water
This recent failure-to-diversify case out of Ohio underscores the trustee-liability issues I wrote about here regarding the recent appellate-court reversal of a $24 million judgment against Chase Manhattan in New York. In both cases the bank’s liability (or lack thereof) for losses arising from the decision to hold family stock in trust for decades (versus … Continue Reading

$1.1 Million Judgment Against Wachovia Bank of Georgia for Exposing Assets of NRA to U.S. Estate Tax Upheld on Appeal

Posted in Trustees In Hot Water
Iraqi Heir Loses Half of Estate, Blames Bank After years of litigation, plus an appeal to Georgia’s Supreme Court (see Namik v. Wachovia Bank of Ga., 612 S.E.2d 270 (Ga. S. Ct. 2005), the Court of Appeals in Georgia recently upheld a $1.1 million judgment against Wachovia Bank of Georgia for failing to avoid estate … Continue Reading