According to Biondi, the law cannot now be corrected retroactive to 2010. Instead, New York tax department officials addressed the 2010 change by issuing a memorandum, which Biondi said had no legal effect.
Wiggin and Dana attorney Robert Benjamin agreed.
“Our client’s position [is] that the courts must apply the laws as written,” Benjamin said. “Both Seiden estates followed the law that was in effect at the time. [That] ruling could have implications for all other QTIPs created in the state during 2010, regardless of size.”
A big question is on what legal grounds the New York State Department of Taxation and Finance could appeal the decision, if it chose to do so.
“They could appeal … on the ground that the surrogate did not apply the law correctly to the facts of this case, [but] the facts were undisputed,” the law firm said through its public relations representative.
James Gazzale, assistant public information officer for the New York State Department of Taxation and Finance, declined to comment.