April 29, 2015
Authored by: Luke Lantta
For how long estate planners have been using interconnections between trusts and family entities as estate planning techniques, only recently have appellate courts outside of New York started to tackle these issues in reported decisions. In In re Estate of Stuchlik (as modified, in part, here), the Supreme Court of Nebraska addressed – but did not answer – a question left open by the Supreme Court of Georgia in Rollins v. Rollins: what’s the appropriate standard of care when a trust holds a controlling interest in a family entity?
Edward J. Stuchlik, Jr. and his wife, Margaret, had a pretty common estate plan. They formed a limited partnership into which they conveyed all the farm real estate they owned. Originally, Stuchlik and Margaret were the general partners and owners of 100 percent of the partnership interests.