Recently I read two articles that indicated earlier this year, Joe Paterno transferred to his wife the house that they have lived in since 1969. The house is valued at approximately $600,000. Obviously it is interesting because of the fact that some have speculated that he could be the target of civil lawsuits in the Jerry Sandusky matter. It is possible that Paterno was aware that there was a possibility that everything was going to become public a couple of months later and wished to engage in asset protection. However, asset protection planning is supposed to be accomplished without knowledge of an impending matter – in other words while the coast is clear.

The other reason it might have been is for estate planning purposes. However, as an attorney admitted in California and not Pennsylvania, I am not exactly sure what it accomplishes. We have entered into the world of “portability” and assuming it continues to exist, a surviving spouse essentially gets to use what is left of the predeceased spouse’s exemption amount.

Regardless, it gives estate planning attorneys something to discuss and write about!