! RAY tax/will/pr Flashcards

1
Q

I. MAJOR RULE

GROSS INCOME

A

RULE
Section 61 of the Internal Revenue Code is broadly defined so as to include ANY economic benefit, or realized accession to wealth, irrespective of its derivation.

Exclusion?
R: Income is taxable unless specifically excluded under IRC 1986. Exclusion categories include: ** GILT PIPE **

Deduction?
Before arriving at taxable income, a taxpayer may qualify for certain deductions. Some deductions are allowable to all taxpayers (whether they decide to itemize or take the standard deductions). These deductions are subtracted from gross income to arrive at adjusted gross income. One such deduction is for ordinary and necessary business expenses, which it appears is the deduction that Tom used for his unreimbursed business expenses in prior years.

Accounting?

There are two basis of accounting: (i) cash method (“car”) and (ii) accrural method (“awe”).

Under the CASH BASIS of accounting, receipts of income are reportable when actively or constructively RECIEVED, as distinguished from the accrual basis of accounting where income would be reportable when EARNED.

Gain or loss on property? is only realized upon its sale or disposition. (realized)

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2
Q

Fed tax: taxable gross income”gapc”

A

Section 61 of the Internal Revenue Code is broadly defined so as to include ANY economic benefit, or realized accession to wealth, irrespective of its derivation.

Income is taxable unless specifically excluded under IRC 1986. Exclusion categories include: ** GILT PIPE **

  1. GIFTS
  2. GAMBLING/WINNING TREASURE TROVE=
    - Income from betting, such as D’s $5,000 winning ticket, constitutes gross taxable income.
    - if T itemizes deductions, he can offset the losses to the extent of his net winnings.
  3. ALIMONY
    – Whether alimony payment/child support is excludable as income hinges on whether the instrument was executed post the amendments of 2019.
    –If post 2019, alimony/maintenance/child support are excludable as income to the payee, and the payor is not
    entitled to deduction.
4. PRIZES / AWARDS
constitute taxable income, except:
 (i) recognition awards +
 (ii) employee achievement awards. 
Recepient must be (1) recognized for literary/artistic/relgious charity, (2) without action on his part, (3) not for future service
  1. CANCELLATION OF DEBT
    A debtor whose debt is discharged or cancelled at less than full amount is taxable income to the extent of differences between full and principle amount unless:
    (i) discharge occurs in bankruptcy or tax payer insolvent
    (ii) the reduction of indebtendess is an adjustment of the purchase price
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3
Q

Exclusions from GI:

GILT PIPE

A

Gifts, inheritence, life insurance may be excluded from income for tax purposes.
However, exclusion does NOT apply to ( ). those are taxable. GILT + PIPE

gift (property)
inheritence (installment property recieved),
life insurance (property)
tort awards (emotional damages, punitive)

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4
Q

Exclusion from GI: PARLAMENT

A

Exclusions to GI include PARLAMENTS

P:remium paid for insurance are excludable
A:ctual Medical care expenses,
reimbursement of medical costs
R:ecovery of bad debts. prior taxes are excl so long as did not reduce taxpayer tax.
L:ife insturance up to 50 k

E:ducation expenses, including:

  • qualified scholarship
  • fees, books, and supplies for courses
  • grants received for GRAD/UNDERGRAD are excludable from GI up to $5,250 received so long as the PRIMARY PURPOSE is to further education; cannot be compensation for past or future service.

M:eals and lodging furnished, are excludable if (1) provided for convenience of employer, (2) in kind, (3) on employers premises

E:mployee Tax Free benefits are not taxable including (i) qualified employee discounts, (ii) working condition, de minimus fringes (donuts) and (iv) qualified transporation

Tuition

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5
Q

II. DEDUCTABLE?
ABCDE MOC
UM CC SHADE

GI- above the line = AGI

A

Section 61 of the Internal Revenue Code is broadly interperets income as any economic benefit from whatever source derived. Before arriving at taxable income, a taxpayer may qualify for certain deductions. Some deductions are allowable to all taxpayers (whether they decide to itemize or take the standard deductions). These deductions are subtracted from gross income to arrive at adjusted gross income. One such deduction is for ordinary and necessary business expenses, which it appears is the deduction that Tom used for his unreimbursed business expenses in prior years.

For individuals, there are two levels of deductions:
1. Above the Line: ABCDE MOC* items deducted from GI arriving to AGI
2. Below Line: UM CC SHADE itemized/standardized
items deducted from AGI to arrive to taxable income

For corporations, there is not AGI.

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6
Q

DEDUCTIONS
GI - “above the line” = AGI
ABCDE MOC above the line income

A

Section 61 of the Internal Revenue Code is broadly interperets income as any economic benefit from whatever source derived. Before arriving at taxable income, a taxpayer may qualify for certain deductions. GI- “above the line deduction”= AGI and AGI- below the line deductions= taxable income. Deductions that are included in “above the line deductions” include: ABCDE MOC

Alimony

Business expenses: ordinary business expenses incurred in carrying on business are deductible. (**Not Deductable– Salaries over 1 million)

Capital losses: are deductible up to $3,000 of net losses from “sale or exchange of capital assets”

Deductions From Rents or Royalties: for property held in production of rent or royalties and rental income are deductible expenses. deductions for expenses incurred in connection with that property. **NOTE ! if vacation home is rented out for fewer than 15 days per year it is not subject to income or expenses

Education-Related Expenses: “Qualified Student Loans” are deductable from AGI up to $2500 for interest paid during year for any educational loan, $80,000. Note! you may not claim interest unless your not a dependent and your personally liable for the loan

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7
Q

DEDUCTIONS
AGI- “below the line” = taxable income

HINTC

A

Section 61 of the Internal Revenue Code is broadly interperets income as any economic benefit from whatever source derived. Before arriving at taxable income, a taxpayer may qualify for certain deductions. GI- “above the line deduction”= AGI and AGI- below the line deductions= taxable income. Deductions that are included in “below the line” include: **HOPC MINT*

  1. home equity interest (second mortgage) is deductible “loan”
    - deductable even if the proceeds of the loans are not used on a personal residence, are deductible if the loans are secured by a mortgage on the borrower’s equity in his personal residence
  2. original purchase money mortgage interest is deductible on loans up to $750,000.
  3. personal credit card interest NOT deductable
  4. Non Business Losses
    may be deductible including: (i) casualty losses: deductible only if in conjunction with a federally declared disaster. (ii) wagering losses incurred in gambling are deductible but only to extent of wagering gains for the year (iii) loss on sale of personal use asset is NOT deductible** Note Home Office: if space is used EXCLUSIVELY for business space
  5. Taxes: State, local income, real property and personal property taxes are deductible up to $10,000.
  6. Charity Contributions: up to 60% of AGI is deductible so long as qualifying organization ** if taxpayer receives something in return for his gift, only difference in gift received and contribution is deductible**
  7. Medical Expensesdeductible to the extent they exceed 7.5 of AGI. * includes cost of drugs
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8
Q

III. Allocation of Income

A
  • income to person:Earned income is taxable to one who earns it. As SCOTUS has emphasized, “fruit cannot be attributed to different tree than THAT from which it grows”
  • Income from Trust: A trust is seperate taxible entity. If propert is IRREVOCABLY transferred to a trust, the trust or its beneficiaries will be taxed on income. If grantor or spouse retains any benefit from trust income, then it will be taxed tohim.
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9
Q

IV. Accounting

When must X report it?

A

RULE:
There are two basis of accounting for income (i) cash method (“car”) and (ii) accrural method (“awe”).

Under the CASH BASIS of accounting, receipts of income are reportable when actively or constructively RECIEVED, distinguished from the ACCRUAL basis of accounting where income would be reportable when EARNED Thus, at least the non-refundable portion of Abel’s advance is taxable in 1999 when received.

HERE:
As a ‘cash method’ taxpayer, Abel is required to report and recognize income in the year that he receives it.

Able certainly has constructive receipt of this income, (he knows the bills are due) and his only reason for not having actual receipt is his own delay in paying himself. Thus, because Able is in receipt of income, he may not defer the taxability of his legal fees, which are income under the Internal Revenue Code.

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10
Q

IV. GAIN/LOSS

A

Gain and losses on disposition of property are only given tax affect when they are realized.

  1. (Gain loss= AR-AB))
    - – The gain or loss is measured by the difference btwn the amount realized and the tax payers adjusted basis.
  2. AMOUNT REALIZED: equals the amount of cash FMV and any cash recieved for property/services recieved)
  3. NOTE
    No gain or loss is recognized when tax payer exchanges real property for (1) productive use in business or(2) for investment for like kind property also held for productive use for business or investment
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11
Q

PR: Duty to Client
Competence
Communication

A

Pa. R.P.C. Rule 1.4, Communication, provides:
(a) A lawyer shall keep a client informed about the status of a matter and promptly comply with reasonable requests for information.

(b) A lawyer shall explain a matter to the extent necessary to permit the client to make informed decisions regarding the representation.

Frank could have lodged a complaint against Abel under Pa. R.P.C. Rule 1.4, Communication with the Pennsylvania Disciplinary Board.

Communication
A Lawyer owes duty of competent representation that requires the necessary knowledge skill and thoroughness for necessary representations. To maintain requisite knowledge and skill, must keep abrest with technology changes.

  1. DUTY TO REJECT + CT
    lawyer is allowed to reject cases, unless court appoints the case (not financially burdensome)
  2. SHOULD NOT REJECT CASE bc “ALE”
    Also, you SHOULD take the case, if you can “ALE” However there exceptions to this rule such as when the court appoints a case or there is a duty to reject.
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12
Q
PR: Duties to Clients
Competence 
Communication
Diligence
Loyalty
Fees
A
L must act with 
Competence 
Communication
Diligence
Loyalty
Fees
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13
Q

I. PR: Duty to Client
Competence
Diligence

A

I. Diligence:
L must act with reasonable diligence and promptness in representing C

II. Competence:
L must have legal knowledge, skill, thoroughness and preparation reasonably necessary to represent C (this duty cannot be cannot be waived by under any circum (doesn’t matter if pro bono, reduced fees)

(i) if ct appoints: must unless financial

(ii) L may gain competency by..
* *ALE**

1) Associating w/ lawyer reasonably believed to be competent, or
2) learning, acquiring sufficient and skill before performance w/o undue expense or delay

3) But may advise or assist in a true emergency (e.g., impracticable to reach another L) to extent
reasonably necessary

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14
Q

PR: Duty to Client

conflict of interest

  1. between clients +
  2. with firm
A
  1. CONTINUING REP

L may not accept or continue representation of C, without informed, written consent (IWC) from C, if

(1) the representation is directly adverse to another C or
(2) there is a significant risk that representation of C will be materially limited by L’s responsibilities to another C, former C, or personal interest of L

  1. FIRM imputed disqual

L’s COI disqualifies entire firm, unless it’s
a) due to L’s personal interest, and

b) L is screened from participation in subject matter of former representation, given no fee, and former C
notified in writing, or

c) L is leaving the firm

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15
Q

PR: Duty to Client

  • conflict of interest with clients ie: gifts, money, sex
A
  1. Gift from client:
    - A lawyer cannot induce or solicit a substantial gift from a client.
  • Cannot prepare an
    instrument giving himself a gift unless related to client
  1. Pecuniary interest in litigation subject matter:

Only allowed as lien to secure fees, contingency agreement

v. Loans (advancing money to C): L cannot provide financial assistance to C in connection w/ lit, except for…
- – Advancing litigation expenses in contingency case (no personal loans), paying for an indigent C

  1. Sexual relation with C: L may not have sexual relation with C, unless it existed before AC relationship. L’s
    conduct not imputed to firm.
    - If C is an organization, rule applies to any constituent of org who supervises,
    directs or regularly consults with L concerning org’s legal matters. [Consider COI (2) above]
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16
Q

I. PR: Duty to Client
duty of loyalty/conflict
- joint clients

A
  1. Joint clients
    (concurrent conflict):

i) L cannot represent C if there’s a concurrent COI, unless L reasonably
believes he can competently and diligently represent both Cs + each affected client gives IWC

ii) Concurrent COI exists where:
1) representation of C is directly adverse to another C’s interests or

2) significant risk that representation of C will be materially limited by interests of another

  1. Former clients: If relationship w/ former C will “substantially affect” relationship w/ new C, must give written disclo to new C
    - – “Substantially affect”? Law or facts overlap, or confidences of one would hurt one to help another
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17
Q
I. PR: Duty to Client
Fees
- fee agreement
- contingency fees
- retainer fees
A

Fees: Fees cannot be “unreasonable.” Factors include novelty and difficulty of legal issues, time limitation, nature of
relationship w/ client, experience, contingency

i. Fee agreement - preferably in writing, except contingent cases or with a regular client with same basis or rate

ii. Contingency fees-
Not allowed for criminal or domestic relation cases (divorce, alimony. property settlement)

iii. 3P compensation:
can comp from non-C, only if 1) 3P not interfere with independence of
professional judgment or with lawyer-client relationship, 2) C info is kept confidential, and 3) C gives informed consent

iv. Retainer fees:
L may not keep unearned fees
(L may recover unpaid fees if fired by C (but not after withdrawal by L)

v. Fee splitting only happen btwn lawyers:
Division is restricted unless 1) client agrees in writing, 2) fees are proportional to work done by each lawyer, and 3) is overall reasonable

vi. Duty to safekeep client funds:

Must keep separate funds in trust account. Comingling with L’s funds is permitted to
the extent reasonably necessary to pay bank charges. Any disputed portion must remain in the trust account

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18
Q

PR: Duty to Client

Confidentiality

A

Confidentiality:
A L must not reveal information relating to the representation of a client.

EXCEPTIONS:
To prevent death or serious bodily harm, prevent
- subs financial harm, 
- has informed consent, 
- for ethics advice, 
- suit v. client, 
- collect fees, 
- compelled by ct , law ethics rules
  1. Att-client privilege:

evid privilege that allows C to refuse to testify and prevent L from testifying in court about communications.
This Extends to preliminary consultation w/ L.

EXCEPTIONS: duty
of confidentiality (may conflict, discuss!) Crime/fraud (conflicts w/ duty of confidentiality), suit v. client,
joint clients, competency or intention of testator client
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19
Q

I. PR: Duty to Client

-Organization as client

A

Organization as client: L represents the organization; he must conform his rep to the concept that C is the org itself
i. When L knows that action of (rogue) officer or employee is likely to result in substantial injury to the org,
L must proceed as is reasonably necessary in the best interest of the org
1. Report up the chain of command up to the highest level (board of directors). If this fails, and there
is substantial risk of harm to the org, L may reveal info outside to the extent necessary
ii. When L is dealing with org’s constituents (directors, officers, e’ee, members, s/h) and reasonably should
know org’s interests are adverse to those of constituents (e’ee sues), L must explain C’s adverse interest
1. L must obtain consent of org’s counsel before communicating with a constituent of the org

20
Q

II. PR: Duty to Tribunal

  • crim pros
  • duty of candor
  • duty to preserve decorum
  • lawyer as witness
A

a. Criminal prosecutor duties:
PC to cause to bring charges, make reasonable efforts to protect Δ’s
right to counsel, refrain from extrajudicial comments biased against Δ, and disclose mitigating evidence to Δ

b. Duty of candor:
L has a duty not to knowingly offer false evidence, but L may refuse to offer evidence he reasonably believes is false
—Testimony of criminal Δ:
If L reasonably believes testimony will be false, must still allow Δ to testify
— If L knows Δ’s testimony will be false: Try to convince not to, ask court to withdraw, or disclose

ii. Duty not to further perjury:
L may not… knowingly make a false statement of law or material fact or fail
to disclose it; fail to disclose controlling, directly adverse authority; or misquote authority

c. Duty to preserve decorum:
L may not communicate ex parte with or gift judge (except campaign contribution). L
may not communicate with jurors during proceedings, seek to influence jurors, or harass jurors

d. Lawyer as witness:
L may not be a witness and advocate, unless there is: uncontested matter, explanation of nature and value of legal services, substantial hardship on C

21
Q

III. PR: Duty to Others

  • duty of fairness to opposing party
A

a. Duty of fairness to opposing party: L may not engage in dishonest conduct or trick the opposing party

–Duty not to tamper with evid: L may not alter, destroy, or hide evidence or witnesses from opposing party

ii. Duty to produce incriminating evidence: L who receives incriminating evidence from C must turn it over
- – Can accommodate conflict w/ duty of confidentiality by refusing to disclose its source

iii. Inadvertent disclosure: If L inadvertently receives confidential doc, must stop reading and notify sender
iv. Duty to expedite litigation: L must make reasonable efforts to expedite litigation

b. Witnesses:
L may not bribe witnesses. L may provide reasonable expenses, reasonable lost wages, reasonable expert
fees, but these compensations cannot be contingent on content of testimony

c. Trial publicity: L may state to media re charges, defense, investigation exists, schedule, ask help, warn public danger

d. Represented 3P: L may not communicate about the matter with other party L knows is represented by counsel,
unless 3P’s counsel consented and L does not intend to embarrass, delay or burden 3P; or unless legally authorized

e. Unrepresented 3P: L may communicate with other party only if L reveals role and suggests impartiality
f. Acting as neutral 3P: L must inform unrepresented parties that he is not representing them. Explain role if necessary

22
Q

IV. PR: Professional Integrity

-Ads

A

Advertisement (generally allowed): False or misleading communication containing material misrepresentation of
fact or law are prohibited

i. False or misleading:
What might confuse client, what client might think ad promises or L is implying
1. Presumed violations: Communication delivered to potential C in a time of physical/mental stress
or delivered at accident scene, hospital or healthcare center are presumed to be false and
misleading, unless L proves otherwise; omitting a necessary fact; stating past result w/o disclaimer

ii. L may communicate what he practices but cannot state or imply he is a specialist
iii. Mailings seeking fee-paying work must be clearly labeled as advertisements

23
Q

IV. PR: Professional integrity

-solicitation

A

Solicitation (generally prohibited):
L may not seek work via contact in person or live phone call (or real-time
electronics), unless family or prior professional (or close personal) relationship

i. Prohibited:
solicit employment from prospect who indicated a desire not to be solicited, advertising above
—L may arrange reciprocal referrals with another L or non-L professional if it is not exclusive, and
L explains to C when making referral

ii. Permitted:
contact is a lawyer or has prior relationship (family, close personal, professional) with L, lack
pecuniary motive (pro bono), client-initiated call
—Absent actual knowledge that prospective C does not wish to receive communications from L, L is not prohibited from sending truthful, non-deceptive letters to persons known to face a specific
legal problem (accident victims)

  1. UNAUTHORIZED PRACTICE
    X likely violated RPC, specifically, the rules governing the unauthorized practice of law. Engaging in unauthorized practice of law. Pa makes it misdemeanor in third degree

Rules: Lawyer engages in unauthorized practice of law when:
1. practices in jdx where not admitted:*** exceptions- pro hac, multistate business partnership, temporary licensure undertaken with pa lawyer, ARD
2. Judges/ct officers cant practice law
3. Legal Intern may not appear on behalf of court, lawyer can delegate tasks to paralegal
4. Limited exception where professional judgement not required. Cts placed
limitations on certain activities relating to real estate brokers, tax advisers, estate planners, and corporations.

PA: Violation is 3d degree misdemeanor.

24
Q

PR: professional integrity

  • bar admission
  • discipline after admis
A
  1. Bar admission:
    On the application for admission to the bar, a member is prohibited from making a false statement of
    or knowingly fail to disclose material facts. May not further an application of one who he knows to be unqualified
  2. Grounds for discipline after admission:
    A lawyer may not violate the rules or knowingly assist or induce others, or commit a criminal act or engage in conduct that reflects dishonesty
  3. Duty to report misconduct: If L knows (suspicion or speculation insufficient) of a violation of rules that presents a
    substantial question as to the honesty, trustworthiness, or fitness as an attorney, he is obligated to report it

i. EXCEPTION: No obligation to report if learned of misconduct through AC confidence

25
Q

PR: professional integrity

A

d. Vicarious responsibility:

A lawyer must supervise subordinates and make reasonable efforts to ensure compliance Supervisor is responsible for another lawyer if he “FOR”

1) orders misconduct,
2) ratifies misconduct (approve
after finding subordinate’s misconduct), or
3) fails to remedy (stop, prevent, dissuade)

ii. Subordinate L is not protected from discipline, unless following supervisor’s directions that were a
reasonable resolution of an arguable question of PR ethics. If supervisor is patently wrong, no protection

iii. A lawyer having direct supervisory authority over a non-lawyer must make reasonable efforts to ensure that
the person’s conduct is compatible with the professional obligations of the lawyer

A subordinate’s duties under the RPC, when a superior orders his action, are governed by Rule 5.2. A subordinate attorney has a duty to adhere to the Rules of Professional Conduct regardless of conflicting instructions unless the duty is not clear. In such a case, when the problem has been brought to the attention of a supervising attorney, and the supervising attorney has made a decision on the propriety of the action, the subordinate may rely on the judgment of the supervising attorney.

26
Q

IV. PR: Professional integrity

  • sale of practice
  • partnership
A

Sale of law practice:

    • A law practice may be sold, only if
      1) notice to client (regarding sale, right to select own
      counsel) ,
      2) confidentiality and COI rules still apply, and
      3) fees do not increase because of sale

—Entire practice must be sold. Must cease practicing law in the geographic area

f. Partnership: May not form a partnership with a non-lawyer if any of its activities constitutes the practice of law

27
Q

Corporation

SH Rights- Voting

A

I. SH RIGHTS: “o mavro queen dissents”

R: Shareholders are owners, and do not manage a corporation. SH generally have annual meetings, with written notice (10-16) stating time place purpose, and vote annually, through record shareholder or proxy, in the presence of a quorum.

Proxy may be regarded as notice via electronic or writing to secretary authorizing vote.

  • – revocable: by showing up to meeting, or death receipt
  • – irrevocable: “proxy coupled with interest” (irr proxy and interest in shares/interest)

Generally a quorum (majority of outstanding shares) required for a vote.

A director must discharge his or her duties in good faith and with a reasonable belief that what she does is in the corporation’s best interests.

A director must also exercise that degree of care which a reasonably prudent person would exercise in the care of her own business. With reference to the first part of this standard, the duty of loyalty, a director’s actions will be insulated if the action, even if it involves self dealing by one of the directors, is either fair to the corporation or approved by a majority of disinterested directors or a majority of all shareholders.

With reference to the second part of the standard, directors will benefit from the protection of the business judgment rule, which insulates directors from liability for not exercising reasonable care if their actions are informed, have a rational basis, or are based on a good faith reliance on either the financial statements of the corporation, its book value, or a report from a competent source as to the fairness of a proposed transaction.

28
Q

Wills: Ademption

A

RULE:
- Money needed to pay expenses and claims, is raised by selling IRGDS
intestate property, the residuary estate, general gifts and subject matter of demonstrative gifts in that order.
- A bequest is adeemed if it is a specific bequest which is sold or otherwise disposed of prior to the time for disbursement.

EXAMPLES:

  • Joe will not receive anything from Frank’s estate because the specific bequest was adeemed and the remainder of the estate minus other specific bequests was left to charity (church).
  • Sam will not inherit anything from Frank’s estate because he was not left anything other than Blackacre which has totally adeemed, since none of the exceptions to the general ademption rule apply, and since Frank has left the residue of his estate to Wilma.
  • – Daughter, Darla will not be exonerated from the lien on it securing Frank’s debt.
29
Q

Motion for Judgement on the pleadings

A

The Pennsylvania Courts have consistently recognized that a Motion for Judgment on the Pleadings is similar to a demurrer as would be raised by Preliminary Objections. The Motion is to be granted only where there are no disputed facts and the party filing the Motion, as a matter of law, is entitled to judgment.

2005:
– In deciding whether to grant the Motion, a Court is limited to the pleadings and relevant documents that are properly attached to the pleadings.

  • -The Motion for Judgment on the Pleadings is a proper procedural Motion to file at this point since all of the relevant pleadings have been filed; that is Complaint, Answer, New Matter and Reply to New Matter.
    • The Court would deny the Motion for Judgment on the Pleadings since this is not the proper time to reconcile a factual dispute as to what occurred. Tom alleged that he was acting in self-defense while Jerry alleged that this was an unprovoked attack. Judgment on the Pleadings is proper only when no material facts are in dispute.
  • – Additionally, Tom has failed to establish that based on the pleadings, he is entitled to judgment as a matter of law. The Complaint sets forth the elements of battery, which are an intentional offensive touching or contact. Levenson v. Souser, 384 Pa. Super. 132, 557 A.2d 1081 (1989). Here the Complaint states that Jerry was actually touched by Tom, when he was punched in the face, which was obviously offensive. Since the Complaint sets forth Jerry’s allegation that he was the victim of an unprovoked attack and the Reply to New Matter denies that Jerry was the aggressor, the facts, which
30
Q

PA RULE:

Loss of Consortium

A

Selma would be able to include a cause of action based upon a loss of consortium, which is a right growing out of the marriage relationship.

The interference with the right of consortium by a tortfesor (Tom) to one spouse (Jerry) affords the other spouse (Selma) with a legal cause of action to recover damages for that interference. Since a loss of consortium is derivative of the injured spouse’s claim and it arises from the bodily injury to the other spouse (Jerry), Selma is entitled to damages for loss of consortium.

31
Q

WIll : Ambigous WIll

A

The probate court should admit relevant extrinsic evidence to resolve the ambiguity in Frank’s will.

The Letters show that Frank, in his estate planning, had intended a $25,000 gift, but that Abel drafted a patently ambiguous bequest of “twenty-five hundred ($25,000)” to Alma Mater. There does not appear, from the facts, to be any other provisions in the will which might resolve this ambiguity. For example, if the will contained a series of $2,500 charitable gifts, it might evidence that the Alma Mater gift was intended to be $2,500 rather than $25,000.

Although the general rule in will interpretation is to prohibit extrinsic evidence, cases on the interpretation of ambiguous testamentary language have long allowed exceptions introducing extrinsic evidence (outside of the will) to resolve a language ambiguity where the Testator’s intent is unclear from a diligent reading of the entire will. Unless the language at issue is so nonsensical that no meaning can be derived from it, the admission of extrinsic evidence is a viable and reasonable solution. Even latent
3
ambiguities in wills (i.e., those ambiguities caused by surrounding circumstances rather than the content of the will) can be resolved with extrinsic evidence.

32
Q

Will Lapse

Rule?
Exceptions?

A

When beneficiary named in the will dies before the T, the gift lapses, unless it is saved by a state anti lapse statute.

Pennsylvania’s anti lapse statute applies when the predeasing beneficiary is T’s
descendant, descendant child, or sibling, who takes issue, who survives T.

If the lapse statute applies, the issue of the deceased beneficiary take in the beneficiaries place.

There are exceptions to this rule:
1. In the case of a gift to T’s sibling, or to child of sibling, the gift will lapse to the extent that it would pass as a result of T’s own spouse or issue.

  1. Where the gift is by will to a grop of persons generally described as a class “Children” and some class members predecease the testator, the lapse statute does not apply, the surviving members take.
  2. PA follows majority: if residurary estate is devised to two or more person, a gift fails for any reason, the surviving residuary devises take the estate in propertion to their interests in residue.
33
Q

Wills:

Abatement

A

Money needed to pay expenses and claims, is raised by selling IRGDS
intestate property, the residuary estate, general gifts and subject matter of demonstrative gifts in that order.

If

34
Q

what legacy?
-special rule

“i devise blackacre to my son jon”

A

specific devise/bequest.
— ONLY SPECIFIC GIFTS ARE ADEEMED, if not specific devise– take subject to

Specific devisee takes any additional securities/equity on behalf of T, but not anything acquired by purchase options.
*** if T owns 100 stocks at the time he executes will, thats what the kid takes!!!!

Specific devisee is entitled to securities of another owned by T as a result of merger, consolidation, reoorganization or other similar action initiated by the entity.

35
Q

what legacy?

i give sum 4000 to be paid out of the proceeds of sale of my acme stock to my sister sarah

A
demonstrative legacy
(ademption does not apply)
36
Q

what legacy?

i give the sum of 10 to my daughter donna

A

general legacy

37
Q

what legacy?

i give the rest, residue, and remainder to wife, Angela

A

residuary bequest

38
Q

what legacy?

when partial intestacy– all of beneficiaries predecease testator and not covered by anty lapse

A

intestate

39
Q

when the subject matter of specific gift is not owed by T, what hapens?

A

beneficiary takes nothing. gift will be adeemed.

*

40
Q

Wills

Predetermined Child via adoption

A

Predetermined Child: If a child born after a will is drafted is not mentioned in the will, and there is no indicaton that she was intentionally omitted from the will after she is born, or, in this case, adopted, she is entitled to take her intestate share of the estate (except to the extent that a spouse takes).

41
Q

Wills:

Ambiguities

A

Extrinsic evidence is permissible to clarify a latent ambiguity (john paul jones who didnt exist). Extrinsic evidence, when allowed, is limited to resolving the ambiguous words and not for other purposes.

Absent a latent ambiguity, extrinsic evidence is NOT permisable; you cannot disturb the plain meaning of a will with extrinsic evidence

Here, ambiguity clearly exists

42
Q

Wills: Intestancy

decedent is survived by SPOUSE only

A

Under Pennsylvania intestancy rules, where a decedent is survived only by spouse and no parents, the spouse takes the entire estate

43
Q

Wills: Intestancy

decedent is survived by SPOUSE + PARENT

A

Under Pennsylvania intestancy rules, where a decedent is survived only by spouse and parents, the spouse takes the first 30k off the top and half the entire estate

44
Q

Wills: Intestancy

decedent is survived by SPOUSE + ISSUE OF SPOUSE

A

Under Pennsylvania intestancy rules, where a decedent is survived only by spouse and no parents, the spouse takes takes the first 30k off the top and 1/2 the entire estate

45
Q

Wills: Intestancy

decedent is survived by SPOUSE + ISSUE NOT OF SPOUSE

A

Spouse= 1/2 estate

46
Q

Intentional interference with contractual relations

A

Mrs. Big could bring a cause of action for intentional interference with prospective contractual relations. In order to sustain a cause of action for intentional interference with a prospective contractual relationship, the Plaintiff must establish the following:

(1) A prospective contractual relationship;
(2) The purpose or intent to harm the plaintiff by preventing the relationship from occurring;
(3) The absence of privilege or justification on the part of the defendant; and
(4) Actual harm resulting from the defendant’s conduct.