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Could competency litigation affect you?

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With the increase in lifespan and general health, we are also seeing an increase in the amount of competency lawsuits filed by nervous heirs. Generally, if a challenge arises to wills or trusts, it happens after the death of a person. However, as lifespans trend upwards, family members and others are looking to lock in their inheritances prior to death.

Recently, this has started to play out in the case of Sumner Redstone, the 92 year old controlling shareholder of Viacom and CBS. After he removed his longtime companion, Manuela Herzer, as his healthcare agent and kicked her out of his mansion, she sued to challenge his competency and the two are currently in settlement talks.

Dementia is the underlying driver in many of the cases, with over 5.3 million Americans over 65 living with the disease. That number is expected to rise in upcoming years, according to the Alzheimer’s Association.

Assessing someone’s competency in court is still a very inexact science, as there are a number of complex laws and inconsistent standards that courts are forced to wrangle with. While no uniform test exists, courts have used such tests as asking patients to count backwards from 100 by sevens, draw a clock showing a certain time, and name as many words as possible starting with a certain letter in the past.

Planning ahead and having good representation in the formation and defense of your estate and trust matters is a big first step in making sure you and your legacy are protected. If we can help, call our office today at 919-787-7711 or fill out the form on the side of this page to speak with one of our attorneys.

Kristine L. Prati Defends Appeal To Full Commission

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Kristine L. Prati successfully defended an appeal brought by the employee to the Full Commission requesting reinstatement of indemnity benefits. In the Opinion and Award filed on August 15, 2016, the Full Commission agreed with the prior ruling of the Deputy Commissioner and refused to award ongoing temporary total disability benefits as the employee failed to prove that he was disabled.

Kristine Prati Successfully Defends Two Matters Before The Full Commission

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Kristine L. Prati of Wilson Ratledge has successfully defended two matters before the Full Commission. In the first matter, the plaintiff appealed the deputy commissioner’s denial of indemnity benefits and compensability of a newly diagnosed occupational disease to the Full Commission. In an Opinion and Award filed on April 22, 2016, the Full Commission upheld the Deputy Commissioner’s determination. Of significance, the Full Commission concluded that the Parsons and Perez presumptions were not applicable to the case, as a prior Consent Opinion and Award with one of the three defendants only accepted compensability of bilateral carpal tunnel syndrome, and not the newly diagnosed occupational disease of flexor carpi radialis tendonitis. Instead, the Full Commission concluded that it was Plaintiff’s burden of proving that the newly diagnosed occupational disease was compensable.

Upon review of the evidence, the Full Commission determined: (1) the plaintiff failed to prove that her employment with any of the named employers placed her at an increased risk of contracting the newly diagnosed occupational disease; (2) the plaintiff failed to prove that her employment with any of the named defendants caused her newly diagnosed occupational disease; and (3) the plaintiff was not entitled to indemnity benefits, as her newly diagnosed occupational disease was the cause of her inability to work, not her compensable carpal tunnel syndrome condition.

In the second matter, the plaintiff appealed the Deputy Commissioner’s full denial of the claim to the Full Commission. In an Opinion and Award filed on May 2, 2016, the Full Commission upheld the Deputy Commissioner’s determination, agreeing that Plaintiff was engaged in her normal work routine at the time of the alleged accident and failed to describe an unlooked for, untoward, or unexpected event that occurred on the alleged date of injury.

Kristine Prati Successfully Defends Two Cases Before The Industrial Commission

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Kristine L. Prati of Wilson Ratledge has successfully defended two cases before the Industrial Commission. The primary issue in the first case was whether the plaintiff was entitled to a reinstatement of temporary total disability benefits. On January 25, 2016, the Deputy Commissioner denied Plaintiff’s request for a reinstatement of TTD benefits, holding that Plaintiff failed to prove an impairment in his earning capacity. The Deputy Commissioner also denied Plaintiff’s request that he be provided with vocational assistance. The primary issue in the second case was whether Plaintiff was entitled to a myoelectric prosthesis. On February 11, 2016, the Deputy Commissioner denied Plaintiff’s request for the myoelectric prosthesis, holding that it was not medically or reasonably necessary.

IRS Raises Tangible Property Expensing Threshold to $2,500 For Small Businesses

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The Internal Revenue Service today simplified the paperwork and recordkeeping requirements for small businesses by raising the safe harbor threshold from $500 to $2,500 for deducting certain capital items.

The change affects businesses that do not maintain an applicable financial statement (audited financial statement). It applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as a capital item.

The new $2,500 threshold applies to any such item substantiated by an invoice. As a result, small businesses will be able to immediately deduct many expenditures that would otherwise need to be spread over a period of years through annual depreciation deductions.

“We received many thoughtful comments from taxpayers, their representatives and the professional tax community”, said IRS Commissioner John Koskinen. “This important step simplifies taxes for small businesses, easing the recordkeeping and paperwork burden on small business owners and their tax preparers.”

Responding to a February comment request, the IRS received more than 150 letters from businesses and their representatives suggesting an increase in the threshold. Commenters noted that the existing $500 threshold was too low to effectively reduce administrative burden on small business. Moreover, the cost of many commonly expensed items such as tablet-style personal computers, smart phones, and machinery and equipment parts typically surpass the $500 threshold.

As before, businesses can still claim otherwise deductible repair and maintenance costs, even if they exceed the $2,500 threshold.

The new $2,500 threshold takes effect starting with tax year 2016. In addition, the IRS will provide audit protection to eligible businesses by not challenging use of the new $2,500 threshold in tax years prior to 2016.

For taxpayers with an applicable financial statement, the de minimis or small-dollar threshold remains $5,000. Further details on this change can be found in Notice 2015-82, posted today on IRS.gov.

For any questions about your specific tax situation, call one of our tax planning experts at 919-787-7711 or contact us online to schedule a consultation.