Estate Taxes

[gowest]

My significant other of 21 years was killed in a car accident in 2001 (lawsuit pending against other driver). I was named by him in the following: Durable Power of Attorney, Health Care Proxy, and Living Will. I am the Executrix and sole beneficiary of estate valued well over $675,000. Neither of us were ever married (in our 40's) and have no children. My name was not on the deed to our home of 10 years. I paid all utilities, food, and day to day expenses (have receipts). We never passed ourselves off as "Mr. and Mrs." and live in New York. (Not a common-law state but the accident occured in a common-law state.)

I just paid an unbelievable amount of estate taxes...probate and attorney fees, all because we were not legally married. My estate attorney says there is nothing I can do put "pay". (Of course, when all is done, it is the lawyers and government who will be the real beneficiaries).

Can you tell me if there has ever been a successful court case where the Estate Tax has been challenged in circumstances similar to mine? Any suggestions on how and where I can research this?

[vrzirn]

Your attorney is correct.

[gowest]

vrizirn...
Thank you for responding. I know my attorney is correct. It is the law that is wrong...and needs to be challenged and changed. That is why I asked how and where I could begin researching any court cases with similar circumstances.

[dmode101]

You can't challenge and change the law in court. Tax laws get changed by Congress, not by courts. The courts merely interpret the laws on the books.

[gowest]

Jeffrey...

Again, I know that it's the law and courts don't change the law. But, there are "clever lawyers" (as ALawyer stated in the Estate Tax forum) and I'm sure that someone out there has had a court case where the law was "interpretted" differently. That's why my question was only: How and where can I research court cases?

We were on vacation for 10 days in Colorado just prior to the accident... accident was in Alabama and we spent over 4 months in the hospital (never regained consciousness)...both States are common law. I was also named on every life insurance
policy and was named as beneficiary of his 401-K, which courts have used to "concretize the persons intentions".

Thanks for responding.

[dmode101]

No. The "clever" lawyer will help you maximize deductions, do appropropriate valuations, make the best elections, show you how to minimize income tax, etc.

If you were not married you cannot use the marital deduction, period. If you try to the IRS will assess a deficiency, penalties and interest.

For one, if you had joint tenancy accounts with your sig other, they are generally fully includable in his estate, EXCEPT to the extent that you can show that you contributed to the asset.

Other opportunities exist as well WITHIN THE LAW that a good attorney will help you take advantage of.