Addressing Complex Trusts and Estates Situations

This article written by John Powell and Amanda Gerstnecker was published in he Legal Intelligencer on July 17, 2012. Please click here to read the full article.

Litigation: The 3 Steps Of Responding To A Subpoena

How to determine and present possible objections while ensuring compliance.

This is part three of a three-part series written by Ron Hicks. Part three addresses steps of responding to a subpoena.

Click here to read the full article (part 3).

Litigation: The 5 risks of responding to a subpoena

While cost alone won’t get you out of responding, in certain circumstances you may be able to quash or modify a subpoena.

This is part two of a three-part series written by Ron Hicks. Part two addresses risks that go along with responding to a subpoena.

Click here to read the full article (part 2).

Individual Supervisors can be Sued for FMLA Violations

Supervisors beware: A recent court ruling established that supervisors who violate the Family and Medical Leave Act (FMLA) can be held individually liable, putting the supervisor’s personal assets on the line.

The FMLA requires employers with 50 or more employees to permit its employees to take up to 12 weeks of unpaid leave for medical reasons or to care for a loved one. The law forbids employers from retaliating in any way against employees who take or request FMLA leave.

Please click here to read Amanda's full article.

Litigation: The Dos and Don’ts of Responding to A Subpoena

Learn as much as possible about the underlying lawsuit as soon as your company is served with a subpoena.

This is part one of a three-part series written by Ron Hicks. Part one will provide you with a greater understanding of the subpoena process and best practices. Parts two and three will address risks and procedures that go along with responding to a subpoena.

Click here to read the full article (part 1).

Addressing Complex Trusts and Estates Situations

An article by John Powell and Amanda Gerstnecker was featured in The Legal Intelligencer. Click here to read, “Addressing Complex Trusts and Estates Situations”.

Shutting Down 89/11’s

Pennsylvania’s realty transfer tax is imposed on almost all recorded transfers of title to real estate within the Commonwealth.  Creative real estate lawyers and tax planners have long tried to avoid the tax by transferring ownership interests in entities holding title to real estate, rather than conveying title to the property itself by deed. So, for example, the members of a limited liability company or partners in a partnership would sell their interests in the company or partnership and the buyer would thus get control of the property through ownership of the company or partnership.    Since the late 1980’s, Pennsylvania limited the tax free nature of these transactions to only those where less than 90% of a company was sold within a three year period. This gave rise to the so-called 89/11 transaction in which a buyer would acquire 89% of a company holding real estate, and defer for three years acquiring the remaining 11%.  These types of transactions have been criticized by politicians and government officials as an unfair loophole, allowing buyers and sellers of significant commercial real estate buildings to escape a tax that otherwise impacts almost every other conveyance of property in Pennsylvania such as single family homes. As part of recently adopted amendments to Pennsylvania’s Tax Reform Code, however, after January 1, 2013, 89/11 transactions will almost entirely, be a thing of the past. In the legislation, which Governor Corbett signed earlier this month, 89/11 transactions will be fully taxable if there is a legally binding commitment to execute a transfer of the remaining 11% at a later date, the terms of the transfer are fixed and not subject to negotiation and the transferring party receives full consideration for the transfer.  The new statutory language suggests that options to acquire the final 11% of a real estate company, where the option price is “subject to negotiation” might escape realty transfer tax, but the practical business considerations that would make such a transaction unpalatable to most buyers and sellers likely mean that after the end of 2012, 89/11 transactions will be a thing of the past.