02/20/2022
Gift to Spouse Recharacterized
In Smaldino v. Commissioner, the Tax Court ruled that a husband’s transfer of a 41% membership interest in a limited…
In Galiotos v. Galiotos, the Supreme Court of Virginia held that the trial court properly removed two brothers as co-executors of their mother’s estate. The first brother, Tasos Galiotos, brought suit to have his brother Steve removed as executor. Steve then filed a counterclaim seeking the removal of Tasos. The Court ruled that both brothers could be removed and an independent executor appointed. Under Virginia law, a court “may revoke and annul the powers of an executor for any cause, as long as the removal of an executor appears proper,” with the critical inquiry being whether removal is in the best interest of the estate. Removal is appropriate for an executor who is guilty fraud, breach of trust, or gross negligence, but other justifications exist. In Galiotos, the Court reiterated that “friction between individuals can justify the removal of an executor when removal would achieve some beneficial end.”
02/20/2022
In Smaldino v. Commissioner, the Tax Court ruled that a husband’s transfer of a 41% membership interest in a limited…