Rubin on Probate Litigation

The Northern Trust Co. v. Shaw , --- So.3d --- (Fla. 2d DCA 2016) This decision deals with an interpretation of a surviving spouse's rights under a prenuptial agreement.  While the spouse argued that she was entitled to both $500,000 under the agreement and  other assets left to her by the decedent, the personal representative felt that she was only entitled to the $500,000, and the other assets left to her by the decedent should be taken into account in satisfying that amount. The Court, relying on North Carolina contract law, ultimately felt that the personal representative's interpretation was correct. The prenuptial agreement at issue stated that the wife would receive from the husband the sum of $500,000 from his estate.  It defined "estate" as his probate estate, any living trust created by him, as well as life insurance, individual retirement accounts, qualified and nonqualified deferred compensation plans and other assets that may pass by beneficiary ...

Vigliani v. Bank of America , 189 So.3d 214 (Fla.2d DCA 2016) This decision is an interesting one because it involves both a review of the uncertainty faced by practitioners in 2009 regarding the future of the estate tax exemption, and somewhat strange language in a trust meant to deal with that uncertainty.   Here, the trial court was asked to consider whether a decedent's revocable trust required a Family Trust to be funded with $3.5 million (the exemption amount in 2009), $5 million (the exemption amount in 2010), or some other amount.  The trustees filed for declaratory relief to obtain a judicial determination of this issue, and the trial court held that the Family Trust should be funded with $3.5 million. The Appellate Court disagreed with the trial court's analysis.  First, it felt that the actual division and funding of the trusts were the responsibility of the trustee of the trust under the terms of the trust and F.S. § 736.0801. The Court also went ...