Lately I’ve been reading more about Samuel Johnson. I just finished John Wain’s biography and am now working through Boswell’s famous 1,402-page biography. A few surprises so far: Johnson dropped out of university for lack of money, taught himself everything, and at one point essentially co-wrote a legal treatise based on his own reading. He did this more than once, across various fields. And of course, he completed his dictionary in far less time than the French Academy took for theirs.
-
Samuel Johnson, Legal Mind
-
Recent Article: Administrability Over Testamentary Freedom of Disposition
Kevin Bennardo’s recent article entitled “Administrability Over Testamentary Freedom of Disposition” makes a simple but underemphasized point: the real organizing principle of inheritance law is not freedom of disposition, but administrability.
While courts and commentators have historically praised testamentary freedom as sacred and fundamental, the actual practice of probate prizes practicality. Testators do not control who administers their estate, cannot dictate the rules of the process, and cannot prevent heirs from entering into agreements that override the will. Even no-contest clauses are largely ignored in many states. And intestacy disregards individual intent altogether.
Interesting article and argument. But I am curious how many attorneys really believe freedom of disposition is absolute. We all understand it comes with strong limitations. Many of those limitations are based on practicality, or as Bennardo calls it, “administrability.”
-
Book Review: Second Act by Henry Oliver
Finished Second Act by Henry Oliver. A sharp reminder that age isn’t the limitation we think it is. Our limits are usually effort and curiosity. Most people aren’t working as hard as they could on their interests, and most aren’t exploring enough new ones either. The book makes a strong case for doubling down and branching out, especially later in life. Avoid complacency. Excellent read.
-
Culture Note: Touch of Evil (1958)
An interesting film from Orson Welles. The film contrasts two approaches to law and order along the U.S.–Mexico border. On one side, the Mexican authorities are represented by Charlton Heston’s character, an idealistic, procedure-bound official committed to doing things by the book. On the other side, the American side is run by Welles himself, playing a morally compromised but intuitive police captain who sometimes bends the law.
At first glance, the film appears to side with Heston’s clean-cut proceduralism. But perhaps a Straussian reading of the film may suggest that Welles’s character—despite his corruption—is the better lawman. After all, the American side of the border is under somewhat more control. The Grandi crime family controls the town on the Mexican side of the border. And don’t forget, Welles was right—Sanchez was in fact guilty. He wasn’t framing an innocent man. He was relying on instincts honed from decades of experience.
Recommended.
-
Recent Case: IRS Loses Case on Intra-Family Loans vs. Gifts
The Tax Court’s recent decision in Estate of Galli v. Commissioner, issued March 5, 2025, addresses the treatment of intra-family loans and gift tax. The case involved a $2.3 million transfer from a mother to her son, documented with a promissory note at the applicable federal rate (AFR). The IRS argued that the loan lacked common commercial safeguards and suggested that part of the original transfer should be treated as a gift. However, the court sided with the taxpayer, holding that the loan met the requirements of IRC § 7872 and was therefore not a gift.
This case reinforces the idea that AFR-compliant loans are generally treated as loans, not gifts, though the IRS sometimes challenges intra-family transactions based on facts and circumstances. The case serves as a reminder that proper documentation, interest payments, and consistent reporting are important in avoiding potential gift tax issues.