Pfannenstiehl

trust shield

trust shieldHi there,

I continue to be amazed by the distinguished group of divorce and probate lawyers I have the privilege to work with at Burns & Levinson. Today’s decision on Pfannenstiehl v. Pfannenstiehl, a case which will guide family financial planning across the country, is a credit to their hard work and dedication. We’re proud to bring you part two of this story which our contributor Tiffany Bentley brought to our attention back in April. This case was deemed “unwinnable” by many, so it is hugely important to our client as well as a celebrated achievement for our team.

Best,
Nancy


Almost exactly four months ago, I blogged with great pride about the compelling arguments from my colleague, Bob O’Regan, to the Supreme Judicial Court in the matter of Pfannenstiehl v. Pfannenstiehl. Today, I blog with even greater pride about the SJC’s unanimous decision in our client’s favor.

In Pfannenstiehl, initially both the Trial Court and the Appeals Court went to great lengths to ensure that the wife would benefit from an irrevocable trust established by her (now former) husband’s father. The husband had no access to or control over the trust. Assets and … Keep reading

On April 5, 2016, the collective eyes of Massachusetts divorce attorneys and estate planners were fixed on the Supreme Judicial Court, where the highly-anticipated oral arguments on “further appellate review” of Pfannenstiehl v. Pfannenstiehl took place.

The 2015 Appeals Court decision received national attention for its potential detrimental impact on the estate planning goals of families who desire to shield trust assets from divorce claims. In Pfannenstiehl, both the Trial Court and the Appeals Court went to great lengths to ensure that the wife would benefit, at least indirectly, from an irrevocable trust established by her soon-to-be-ex-husband’s father even though the husband had no control over the trust and could receive distributions only at the discretion of the trustees. The husband had no present, guaranteed, enforceable interest to receive or use assets or income from the trust. The trustees’ discretion was limited to making distributions under an “ascertainable standard” for a beneficiary’s health, education, maintenance and support. The Trial Court and Appeals Court decisions failed to account for the fact that the trustees did not make distributions to the husband for most of the marriage, and that the husband received distributions only during the final two years of … Keep reading