Significant Changes to Federal Estate Tax Law

Due to its inclusion in the recent compromise tax bill, the changes to the Federal Estate Tax have received a substantial amount of publicity.  As most people know, the new tax law substantially changes the Federal Estate Tax.  Under the new law, the first $5,000,000 of a person's estate is tax free.  This increased the available exemption from the $1,000,000 amount set to return in January and the $3,500,000 amount in place in 2009.  In addition, the rate of tax decreases to 35%.  Overall, far fewer people will be paying a Federal Estate Tax and those that are will be paying less than before.

One of the most interesting features of the new law is the portability provision.  Previously, if a spouse died without using his or her exemption (e.g. by giving all assets to the surviving spouse) the exemption would be lost.  When the second spouse subsequently died, he or she would have only his or her own exemption to work with.  Planning would typically be put in place - using bypass trusts often funded through disclaimers - to try to utilize both exemptions.  Under the new law, however, the surviving spouse will be able to utilize the deceased spouse's exemption to the extent it was unused.  This could potentially allow a surviving spouse to carry a $10,000,000 exemption!  While this feature seems like a great gift from the government there is at least one catch.  In order for the surviving spouse to use the deceased spouse's exemption, a Federal Estate Tax Return (form 706) will need to filed following the death of the first spouse.  While the time and cost of filing a return will be worth the potential savings in the future, the new law creates a trap for the unwary.

Jenei & Cohen, P.C. provides estate planning services for individuals and couples at all levels of wealth.  Please call for a consultation.

Life and Estate Planning for the LGBT Community

It is important for everyone to understand their legal rights and obligations when it comes to their relationships with others. This is even more important for members of the LGBT community. While the law establishes certain rights and rules for married couples, those same rights and rules do not apply to unmarried couples. Pennsylvania will not likely recognize gay marriage anytime soon.  There are steps, however, that you can take to protect yourself, your partner and your loved ones.

Click on our The purpose of this page is to introduce you to some issues that should be considered when planning.  While this discussion is far from complete, hopefully, it will encourage you to talk to your partner, pursue these matters and seek the advice of counsel with an understanding of the needs of LGBT clients. 

Click on our Life and Estate Planning for the LGBT Community page for more information.

Paul R. Cohen has worked with numerous LGBT clients addressing their planning needs.  He has spoken at several continuing education programs instructing attorneys on the needs of the LGBT community.  He is a faculty member of the Delaware Valley Legacy Fund, a Philadelphia-based non-profit organization associated with the Philadelphia Foundation.  In 2008, Paul received the Platinum Award from the DVLF for his commitment to the LGBT community.

Colin M. Jenei Gets PennDOT License Suspension Reversed

Recently, Colin was able to reverse a PennDOT suspension of his client’s license.  In a hearing before Bucks County Judge Diane Gibbons, Colin convinced the court that his client did not refuse to give a blood sample after a DUI arrest.  Penndot has taken an appeal of the Court’s ruling and Colin looks forward to vigorously defending his client and the lower court’s position before the Commonwealth Court. 

Colin has over 25 years experience, having served for 14 years in the Bucks County District Attorney's Office, where he was Chief of the Homicide by Vehicle Unit and later appointed Chief Deputy District Attorney.  He regularly presents at continuing education classes, where he lectures on vehicle-related crimes and their consequences, with a focus on DUI.  Colin practices in Pennsylvania and New Jersey.

Charissa J. Liller Obtains Acquittal from Bucks County Jury

Charissa J. Liller recently obtained an acquittal for a client accused of sexual assault.  After a two-day trial and an hour and a half of deliberations, a Bucks County jury returned a not guilty verdict on all counts.

This case was notable for a variety of reasons.  Upon learning that our client wanted a jury trial, the Commonwealth added an extra count that would have required the client to report under Megan’s Law if he was convicted.  Most people do not realize that Megan’s Law can apply to crimes which occur strictly between adults.

After the Commonwealth presented the testimony of the complainant, Charissa conducted an extensive cross-examination, revealing multiple discrepancies in her story.  She then called the police officer who filed the charges.  He corroborated that the majority of the woman’s testimony was not consistent with what she first reported.  It is highly unusual for a defense attorney to call the prosecuting police officer in a case to support her client.  However, since the Commonwealth never called him to testify, it was necessary to call him as a witness for the defense.

The client testified during the trial.  This is a rare occurrence in criminal court.  In this case, however, Charissa believed it was important for the jury to hear from the defendant directly as to what happened, i.e. that he and this woman engaged in a consensual act.  Due to excellent preparation, he provided a compelling response to the Commonwealth’s story.

At the end of the day, Charissa obtained a victory for our client.  The jury quickly ascertained that the woman’s story did not make sense, and found our client not guilty in under two hours.

Charissa J. Liller practices primarily in the areas of Criminal Defense and Family Law, including divorce, custody, support and adoption matters.  Prior to joining the firm in 2005, Charissa Liller served as an Assistant District Attorney in Bucks County and Berks County.  She has substantial experience representing clients charged with sex-related crimes, including appearances at Sexually Violent Predators hearings under Meghan’s Law.  .

New Jersey DUI Update

A recent case in New Jersey establishes that a prior conviction for refusing to give a breath sample after being stopped for suspected DWI is treated as a prior DWI conviction when considered after a subsequent offense. New legislation requires that certain New Jersey offenders have a breath monitoring devise installed in their vehicle after their FIRST DWI.

Paul R. Cohen appointed as Newtown Borough Solicitor

On January 12, 2010, the Newtown Borough Council unanimously appointed Paul R. Cohen as municipal solicitor.  In this position, Paul will advise Borough Council, the Mayor and Police Chief on all legal matters.  In addition to providing general counsel and attending all Council meetings, Paul will review contracts, litigate disputes and zoning appeals, draft ordinances and resolutions, provide legal opinions on a variety of matters and represent the Borough during conditional use hearings and land development presentations.

In addition to Newtown Borough, our firm also serves as Solicitor for the Bucks County Department of Mental Health and Mental Retardation.  We are special counsel for Upper Southampton Township and assist the Solicitor for Penndel Borough, Upper Southampton Township and the Upper Southampton Sewer Authority.  Colin Jenei previously served as Solicitor for New Hope Borough and Bedminster Township. 

The attorneys of Jenei & Cohen, P.C. regularly represent landowners before municipal boards and commissions throughout Bucks County, including recent work in Solebury Township, New Hope Borough, Upper Makefield Township, Buckingham Township and Newtown Township. 

Jenei & Cohen wins Assessment Appeal for non-profit client.

The Bucks County Court of Common Pleas reversed the Bucks County Board of Assessment Appeals and granted an exemption from Real Estate taxes to Paul R. Cohen's client. The decision will save the non-profit client over $25,000 a year in taxes.

The non-profit is a private school located in Bucks County, occupying a 90 acre campus.  Although most of the land was previously determined to be exempt from real estate taxes, the Bucks County Board of Assessment levied a tax on a 5-acre piece of land containing 10 faculty and administrative residences.  At trial, the County and School District argued that the housing was not necessary for the purposes of the School.  In his trial brief, Paul R. Cohen concluded as follows:

At the hearing, counsel for the Board of Assessment suggested that exemption should be denied based on the fact that other residences exist on campus and the occupants of those residences would be able to provide adequate service to the School.  This argument would essentially force this Court to put its own judgment as to the needs of the School and of the children on campus ahead of the judgment of [the School's] Administrators, Board of Trustees and their collective experience.  The School is required only to demonstrate that it has a “reasonable necessity . . . embracing the idea of convenience and usefulness for the purposes intended, and is not required to prove. . .” absolute necessity.  In re: Swarthmore College, 165 Pa. Cmwlth. 564, 570, 645 A.2d 470, 472 (1994).  This burden has been met.

Ultimately, the Court granted the request for an exemption without a written opinion and the Board of Assessment and School District did not appeal.