Question

Taking the Drye case in your Printed Materials a little further, what do you suppose the result would have been if Rohn had gone to his mother, Irma, when she was on her death bed and said to her, "Mom, I''m insolvent and I owe the federal government some $325,000 on unpaid tax assessments. If you die without a will ["intestate"] the government is going to get all your money. Why don''t you make a will leaving everything to my daughter, Theresa. She can then set up a trust and the family can enjoy your legacy." And, not wanting to see all of her estate go to the IRS (who would?), she did that.

Would the result have been different?

Does this put too much of a premium on technicalities?

Answer 1

If Irma writes a will and gives everything to the granddaughter, then also court will try and find out why she tried to do so. As on death of a person the property should go to the legal hier, here her son is still alive so ideally property should go to him. the court will very well come to know that as he is becoming insolvent in order to escape the federal government's unpaid tax assessment, he is trying to divert the property to his daughter.

Government may take the $325,000 from the property and give back the rest in some percebtage to the son and granddaughter as per the will.