Johanna David is a tax, trusts and estate partner at Forchelli Deegan Terrana LLP in Uniondale. David joined the firm in February 2024 and concentrates her practice on complex trusts and estates related matters.
Her practice is diversified and includes advising clients on asset protection and intricate planning strategies including tax matters and capital gains issues. She also advises clients on options for Medicaid and asset protection.
The current federal and gift estate tax exemption of $13.61 million is set to expire or “sunset” on Dec. 31, 2025, David said. “This means that unless Congress acts, the exemption amount will revert back to the 2017 levels of $5.6 million indexed for inflation—about one-half the current exemption,” she said. “In light of the upcoming reversions, clients are scrambling to do estate planning and employ gifting strategies.”
“While we all await the sunset, however, there is a notable case, Connelly v. Unites States (6/6/24), that significantly impacts family and closely held businesses,” David said. “In Connelly, the Supreme Court of the United States, in a unanimous decision, held that life insurance proceeds payable to a company upon the death of an owner will be included in the value of the business and that value will not be affected by the business’ obligation to redeem the interest in the company held by the deceased owner. Here, the life insurance proceeds paid by the entity were deemed a corporate asset thereby increasing the value of the business.”
“As a result of Connelly, clients and practitioners alike must revisit their buyout agreements,” she said. “The question remains, is a cross-purchase more appropriate than a redemption?”
David is also an adjunct professor of law at Maurice A. Deane School of Law at Hofstra University, where she teaches estate planning to second- and third-year law students.
She is admitted to practice in New York State and before the United States District Court for the eastern and southern districts of New York.
David earned a Juris Doctor from Hofstra University School of Law and a bachelor’s degree from College of Mount Saint Vincent.
She is a member of the Haitian American Lawyers Association of New York; a member of the New York State Bar Association, Elder Law Section and Trust & Estates Section; and a member of the Nassau County Bar Association.
Founded in 1976, Forchelli Deegan Terrana LLP (FDT) is one of Long Island’s largest and most distinguished full-service law firms. The firm employs more than 70 attorneys in nearly 20 practice areas. FDT is committed to providing exceptional service to a broad range of national, regional and local clients.