Matter of Krauss

[*1] Matter of Krauss 2013 NY Slip Op 51781(U) Decided on August 9, 2013 Sur Ct, Nassau County McCarty III, J. Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. This opinion is uncorrected and will not be published in the printed Official Reports.

Decided on August 9, 2013
Sur Ct, Nassau County

In the Matter of the Estate of Selma Krauss, Deceased.



2013-374266/B



Terry E. Scheiner, Esq. (Attorney for Petitioners)

14 Vandaerventer Ave., Ste. 255

Pt. Washington, NY 11050

Edward W. McCarty III, J.

This is a miscellaneous proceeding commenced by the co-executors of the estate of Selma Krauss for permission to file a renunciation of the decedent's interest in her pre-deceased husband's estate. For the reasons that follow, the application is granted.

The decedent, Selma Krauss, died on February 14, 2013. Her husband, Herman Krauss, pre-deceased her having died on January 10, 2013. At the time of her husband's death, Selma was terminally ill. Selma and Herman had two children, Andrea Krauss and Celeste May Krauss, who are the petitioners herein. In April 2013, Andrea and Celeste petitioned for the probate of of Selma's will dated February 10, 1989, first codicil dated August 20, 1993 and second codicil dated October 25, 2001. Letters testamentary and letters of trusteeship with respect to Selma's estate issued to Andrea and Celeste by decree dated April 18, 2013. Andrea and Celeste also petitioned for the probate of Herman's will dated February 10, 1989, first codicil dated August 20, 1993 and second codicil dated October 25, 2001 (collectively referred to as "Herman's will"). Letters testamentary and letters of trusteeship with respect to Herman's estate issued to Andrea and Celeste by decree dated May 21, 2013. Herman's will bequeaths his personal effects to Selma outright. The will also provides for an outright pecuniary marital bequest to Selma and for a credit shelter trust.

According to the petitioners, the combined value of their parents' estates is just under $1,500,000.00. In addition, each of Selma and Herman owned a $100,000.00 life insurance policy naming the other as beneficiary. The marital home was owned by Selma individually. Since Selma owned the house individually, petitioners desire to limit the assets she inherits from Herman's estate to keep Selma's estate below the $1,000,000.00 New York estate tax threshold. Accordingly, petitioners seek to disclaim Selma's interest in: (i) one-half of all jointly-owned bank accounts and U.S. Savings Bonds; (ii) the life insurance policy owned by Herman which named Selma as the beneficiary; and (iii) any and all assets that Herman owned individually which Selma would have an interest in under Articles THIRD and FOURTH of Herman's will. Petitioners estimate the total value of the assets they are seeking to disclaim on behalf of Selma's estate at $400,000.00.

The goal of the proposed renunciation is to achieve an estate tax savings by taking interests inherited by Selma only one month prior to her death out of her estate. Based upon the [*2]evidence submitted and in the absence of opposition, the court finds that petitioners have set forth reasonable cause for the relief requested.

Accordingly, the petition is granted. A proposed decree has been submitted to the court and will be signed if found to be in proper form.

Proceed accordingly.

Dated: August 9, 2013

EDWARD W. McCARTY III

Judge of the

Surrogate's Court