The New York Times has reported that a Manhattan grand jury may be asked to investigate whether or not crimes were committed in the case involving 104 year old socialite Brooke Astor.As reported here last year, questions raised about irregularities in administration of the assets of the multi-millionaire heiress by her son Anthony Marshall as well as allegations of elder abuse and neglect (later found to be unsubstantiated by a New York Supreme Court Judge John Stackhouse ) led to protracted litigation which culminated in an agreement aimed at protecting Ms. Astor’s assets and insuring that she would receive good care.

Now, a report issued by court-appointed guardian JP Morgan Chase raises new questions and allegations about Brooke Astor’s mental competency in 2003 when she signed documents transferring about nine million dollars in various assets to her son. New York County District Attorney Robert Morgenthau has now reportedly advised potential witnesses to prepare to give grand jury testimony in the matter.

The PA Elder,Estate & Fiduciary Law Blog has reported that the Federal Bureau of Investigation has become interested in certain will contests and  estate litigation . While most of us do not think of this as an area that would capture the attention of an ambitions FBI Agent, the Bureau’s website might lead us to think otherwise. High profile court battles involving significant financial fraud on an interstate level which has risen to the level where criminal conduct is evident has attracted law enforcement attention. It is clear that when some of our clients become so enraged at each other that they engage in "War of the Roses" hostility towards each other, they forget that a courtroom is a very public place with a very extensive audience.

Sometimes even a superstar flares out. Such was the determination of a New York jury which found that attorney Jonathan Blattmachr had breached his fiduciary duty by recommending a plan to avoid estate tax by purchasing life insurance pursuant to a method known as a"split dollar insurance arrangement" to Henry Schein, one of the wealthy and well-known clients advised by Mr. Blattmachr and his firm Milbank, Tweed. The verdict is reported in the Wall Street Journal which notes that since the jury also found that this breach was not material in contributing to the client’s loss when the IRS disallowed the strategy, the Schein Estate was not entitled to collect damages.

This story carries with it an implied word to the wise. In this situation, the strategy recommended was already falling into some disfavor with the IRS . Usually, when a plan of action doesn’t feel right or has been subject to criticism in high places (the IRS is a good example of that), a second –or even a third– look is usually in order. If an estate planning genius with the ability of Jonathan Blattmachr can run afoul of the law, the rest of us are doubly warned.