Fiduciary Personally Responsible for Tax Debt

A fiduciary’s liabilities can sometimes arise in unexpected contexts.  A recent decision involving an estate tax liability held that a fiduciary was personally liable for unpaid estate taxes. In Carroll v. United States, 2009-2 USTC ¶ 60,577 (N.D. Ala. 2009), the taxpayer was denied a bankruptcy discharge for unpaid estate taxes arising from the estate …

Hedge Fund Investment Does Not Give Rise to Claim Against Attorneys

In a June 2009 decision from New York’s highest court, the Court of Appeals held that attorneys for a hedge fund did not owe fiduciary duties to the investors.  The hedge fund in question was structured as a limited partnership, and the investors were limited partners. When the investment turned sour, the investors sued, claiming …