Schneider v. Finmann

933 N.E.2d 718 (2010)

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Nature of the Case

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Facts

Ds represented decedent Saul Schneider from April 2000 to his death in October 2006. In April 2000, the decedent purchased a $1 million life insurance policy. He then transferred ownership of that property from himself to an entity of which he was the principal owner, then to another entity of which he was the principal owner, and then, in 2005, back to himself. He died in October 2006. The proceeds of the policy were included as part of his gross taxable estate. P sued Ds for malpractice action alleging that they negligently advised the decedent to transfer, or failed to advise the decedent not to transfer, the policy which resulted in an increased estate tax liability. The Supreme Court granted Ds' motion to dismiss for failure to state a cause of action. The Appellate Division affirmed holding that, in the absence of privity, an estate may not maintain an action for legal malpractice. P appealed.