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Blogs

House Advances Sweeping Maritime Reforms in FY27 Defense Bill

July 29, 20262 minute read

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On July 22, 2026, the House narrowly approved the FY27 National Defense Authorization Act (H.R. 8800) by a vote of 216 to 212, sending the measure to the Senate. Tucked inside the massive defense policy bill are two amendments that, together, amount to the broadest rewrite of federal maritime law in a generation.

A New Shipbuilding and Governance Framework

The first amendment, sponsored by Seapower Subcommittee Chair Trent Kelly (R-MS), reworks the “Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act.” Among its most notable features, the bill would create a new maritime security advisor position within the Executive Office of the President to lead a Maritime Security Board and coordinate the country’s overall maritime strategy. It also sets up a Maritime Security Trust Fund, capped at $20 billion, to support shipbuilding and the broader industrial base, with actual funding left to future budget requests.

On cargo preference, the amendment would push the government cargo requirement from 50 percent to a full 100 percent, consolidate waiver decisions with the Maritime Administrator, and create a new “Ship America Office” to oversee compliance. A related grant program would direct federal dollars toward vessel construction and shipyard investment, subject to Buy America restrictions. The bill would also rewrite parts of the 1851 Limitation of Liability Act, imposing a higher liability cap on foreign vessel owners than on US owners, and would extend Federal Maritime Commission oversight of unfair practices to passenger fares. More than 20 sections focus on workforce development, covering education funding, mariner recruitment, and career retention.

Coast Guard and a New Commercial Cargo Regime

The second amendment, introduced by Coast Guard Subcommittee Chair Mike Ezell (R-MS), implements several proposals drawn from the administration’s Maritime Action Plan. It expands the Federal Ship Financing Program to cover vessel retrofitting and updates key definitions used to evaluate financing applications, opening the door to first-time eligibility for certain fishing vessels. It also increases funding for maritime innovation programs and adds new Buy America sourcing requirements for Coast Guard equipment procurement.

Most significantly, this amendment would create the first mandatory US-flag participation rule reaching into private commercial shipping, covering containerized cargo and roll-on/roll-off vehicles. Participation would phase in gradually, with US-content requirements rising over time, and foreign-influenced vessel owners would need an approved security agreement with US-citizen oversight to take part.

Looking Ahead

With the Senate yet to advance its own version, negotiators are expected to move directly to conference talks once Congress reconvenes in September. Given the range of issues at stake, from governance and cargo rules to shipbuilding finance and vessel security, conference is a critical opportunity to shape how these provisions are reconciled. We will continue tracking this legislation and are available to help clients evaluate its potential impact. For more information about this update, contact Liskow attorneys Leon Rittenberg III and Kevin Naccari, and visit Liskow’s Tax Practice page.

Blogs

Establishment of the Marine Minerals Administration

July 29, 20262 minute read

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On July 10, 2026, the Secretary of the Department of Interior (DOI) released Secretarial Order No. 3451 (Order), which, effective immediately, established the Marine Minerals Administration (MMA),  and reunified the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) into this new bureau.  DOI’s stated purpose of this Order is to improve regulatory safety, operational efficiency, and coordination by eliminating the duplicative executive leadership, administrative operations, information technology systems, and support functions found throughout both BOEM and BSEE.  

Pursuant to the Order, among other things, all functions, personnel, assets, obligations, authorities, and responsibilities of BOEM and BSEE are combined and vested in the MMA, which is now the agency responsible for all aspects of offshore energy and mineral resource management and conservation, safety oversight, environmental enforcement, and related activities on the outer continental shelf. In addition, all existing regulations and standards applicable to BOEM and BSEE will remain in full force and effect under the authority of MMA.

The Order further provides that MMA will become operational in phases to ensure that  there will be no negative impacts on safety, permitting, inspection, enforcement, leasing, production, or environmental review operations.  During this transition period, BOEM and BSEE will retain their operational authority necessary to accomplish their respective missions. 

In accordance with the Order, MMA will be led by a Director under the supervision of the Assistant Secretary – Land and Minerals Management (MMA Director).  The Order directs the MMA Director to, within nine months of the Order,  finalize the organizational structure, establish internal lines of authority, review the distribution of personnel, and advance all required actions and administrative priorities. In addition, the MMA Director is tasked with taking steps to expand and modernize the offshore safety and inspection program and provide a report of such steps to the secretary of DOI within one year of the Order. 

Currently, the acting MMA Director is Matthew Giacona (who is also the acting director of BOEM).

For more information, contact Liskow attorneys Jana Grauberger, Kathleen Doody, and Bradford Laperouse, or visit : https://www.doi.gov/mma-reunification.

Blogs

New Bill Would Bring Opportunity-Zone-Style Tax Breaks to U.S. Shipbuilding

July 23, 20262 minute read

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Representative Mike Kelly (R-Pa.) has introduced legislation that would create up to 100 “maritime prosperity zones” across the country, spanning coastal areas as well as sites along major rivers and the Great Lakes. Businesses and projects located within these zones, including maritime supply chain companies, workforce training programs, and advanced manufacturing operations, would become eligible for targeted economic development tax incentives.

The bill builds on a broader push from the Trump administration to rebuild the domestic maritime industry. In a proposal previously put forward by the administration, and consistent with President Trump’s 2025 address to Congress promising “special tax incentives” for the sector, the maritime zone concept borrows heavily from the Qualified Opportunity Zones program enacted as part of the 2017 tax overhaul during the president’s first term.

Rep. Kelly’s proposal would not create a freestanding incentive structure. Instead, it would layer the new maritime designations onto the existing Opportunity Zone framework, aligning the business and property eligibility rules for maritime zones with those that already apply to Opportunity Zones, and matching the tax treatment available under each.

That alignment matters because Opportunity Zones themselves were recently reshaped. The 2025 tax-and-spending package expanded the availability of favorable short-term tax treatment for investments in rural Opportunity Zones and reduced the amount investors must spend improving a property relative to its basis, the “substantial improvement” threshold, to qualify for the incentive. Under Kelly’s bill, maritime prosperity zones would generally follow suit, picking up these same taxpayer-friendly adjustments.

Although the bill is still in its early legislative stages, we will continue to monitor this legislation as it moves through Congress and will provide updates on any developments. For more information about this update, contact Liskow attorneys Leon Rittenberg III, John Rouchell, and Kevin Naccari, and visit Liskow’s Tax Practice page.

Blogs

Matt Jones Discusses Well Blowout Risks and Response on AAPL’s Landman Now — Podcasting the Profession Podcast

July 20, 2026less than a minute

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As the industry continues to navigate the complexities of operational safety, Matt breaks down the mechanics of well blowouts, explaining how these incidents occur, the significant dangers they present to personnel and the environment, and the critical steps companies must take when one occurs. The discussion also provides an essential perspective on risk mitigation and incident response protocols for landmen and operators in the field.

Liskow attorney Matt Jones was recently featured on the American Association of Professional Landmen’s (AAPL) Landman Now — Podcasting the Profession podcast. In the episode, “Well Blowouts,” Matt joins host Chad Smith to discuss the technical and legal realities surrounding well control incidents.

Listen to the full episode below.

Blogs

IRS Chief Counsel Concludes Conditional Deficit Restoration Obligation Does Not Shift Partnership Liabilities

July 14, 20262 minute read

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In Chief Counsel Advice (CCA) 202628009, released on July 10, 2026, the Internal Revenue Service concluded that a limited partner’s conditional obligation to restore a deficit capital account does not constitute a payment obligation for purposes of Treasury Regulation § 1.752-2(b). Although Chief Counsel Advice cannot be cited as precedent, the memorandum provides important insight into the IRS’s interpretation of partnership liability allocation rules under Internal Revenue Code § 752.

The memorandum involved a limited partnership whose partnership agreement generally shielded limited partners from liability for partnership debts. The agreement permitted the general partner to require a limited partner with a deficit capital account to contribute cash to eliminate the deficit. However, if the limited partner failed to contribute, the general partner’s sole remedy was the discretionary withholding of future distributions. The agreement did not require the limited partner to restore the deficit upon liquidation and provided no additional recourse against the partner.

The IRS analyzed whether this arrangement created an economic risk of loss that would permit the partnership liability to be allocated to the limited partner under Treasury Regulation § 1.752-2. The memorandum concluded that it did not. According to the IRS, a payment obligation exists only when a partner is legally obligated to satisfy a partnership liability if the partnership cannot do so. Because the general partner could satisfy any deficit merely by withholding future distributions and the limited partner had no unconditional legal obligation to make an out-of-pocket payment, the arrangement failed to create the requisite economic risk of loss.

The IRS distinguished this arrangement from a true deficit restoration obligation, which generally requires a partner to contribute personal funds upon liquidation if the partner has a negative capital account. A discretionary right to offset future distributions, standing alone, merely reallocates partnership economics rather than imposing a genuine payment obligation on the partner. As a result, the conditional obligation could not support an allocation of recourse liabilities under § 752.

Partnerships should review partnership agreements that rely on conditional deficit restoration provisions when allocating recourse liabilities among partners. If the agreement does not impose an enforceable obligation requiring a partner to satisfy partnership liabilities with personal assets, the IRS may disregard the provision for purposes of § 752 liability allocations. For more information about this update, contact Liskow attorneys Leon Rittenberg III, Caroline Lafourcade, and Kevin Naccari, and visit Liskow’s Tax Practice page.

Blogs

Treasury and IRS Finalize Reporting Rules for Section 1035 Exchanges and Transfers of Life Insurance Contracts

July 8, 20262 minute read

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The Department of the Treasury and the Internal Revenue Service have issued final regulations addressing reporting obligations for certain tax-free exchanges of life insurance contracts under Internal Revenue Code Section 1035 and transfers of life insurance contracts involving valuable consideration. The regulations are intended to improve reporting compliance following statutory changes enacted by the Tax Cuts and Jobs Act and to assist taxpayers in determining the proper tax treatment of life insurance transactions. The final regulations are scheduled for publication in the Federal Register on July 9, 2026.

Section 1035 generally permits taxpayers to exchange certain insurance contracts without recognizing gain if statutory requirements are satisfied. In addition, the Tax Cuts and Jobs Act significantly modified the long-standing transfer for value rules by creating reporting requirements for reportable policy sales and by limiting the traditional exclusion from income for certain death benefits. The final regulations implement these statutory provisions by establishing reporting requirements for insurers and acquirers and by clarifying the obligations of taxpayers involved in covered transactions.

Among other changes, the regulations provide guidance concerning information returns required when a life insurance contract is transferred for valuable consideration or exchanged under Section 1035 following a reportable policy sale. The rules are intended to ensure that insurers receive sufficient information to determine whether the transfer for value rules apply and to accurately report taxable amounts to policyholders and the IRS. The regulations also clarify reporting responsibilities in situations involving indirect acquisitions and certain successor transactions.

The regulations provide additional certainty by defining key terms, addressing exceptions to the reporting requirements, and coordinating the reporting framework with existing information return rules. Treasury and the IRS also adopted several revisions in response to comments received on the proposed regulations, including clarifications designed to reduce unnecessary reporting burdens while preserving the government’s ability to administer the transfer for value provisions.

Businesses involved in life insurance transactions, including insurance companies, institutional investors, and purchasers of existing life insurance policies, should review their reporting and compliance procedures before the regulations become effective. Although many Section 1035 exchanges continue to qualify for nonrecognition treatment, taxpayers should not assume that every exchange or transfer is free from additional reporting obligations. For more information about this update, contact Liskow attorneys Leon Rittenberg III, Caroline Lafourcade, and Kevin Naccari, and visit Liskow’s Tax Practice page.

Blogs

The Differences Between Texas and Maritime Law Wrongful Death and Survival Damages

July 2, 202611 minute read

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This article was originally published by the Texas Association of Defense Counsel (TADC) for its 2026 Spring magazine. You can read the full version of the publication here. 

The legal remedies provided to family members who survive a person who died as the result of negligence or wrongful acts can vary and are often dependent on the circumstances surrounding the death. In Texas, the survival and wrongful death claim framework is well established and is likely more familiar, at least conceptually. But when the deceased was a seaman or died on navigable water, a different body of law may apply entirely—one with its own rules about who can recover, what they can recover, and how much. This article analyzes the differences between the wrongful death and survival damages available under Texas law and those available pursuant to federal maritime law—specifically the Jones Act, the Death on the High Seas Act (“DOHSA”), and general maritime law.

The Texas Framework

Texas wrongful death and survival law is built on a straightforward premise: when a person is killed by the negligent or wrongful conduct of another, the law should compensate both the family members who suffered the loss and the estate of the person who died. Texas accomplishes this through two distinct causes of action that are often pursued simultaneously.

The Texas Wrongful Death Act creates a cause of action whenever a death is caused by a “wrongful act, neglect, carelessness, unskillfulness, or default.”1 Importantly, the claim must derive from whatever personal injury claim the deceased could have brought had they survived. If the deceased would not have had a viable claim2 against the defendant while alive, there is no viable wrongful death claim. Texas does not provide a common law right to a wrongful death claim; it is purely statutory.3

Recovery under the Texas Wrongful Death Act is limited to three categories of people: the surviving spouse, children, and parents of the deceased.4 Siblings, grandchildren, and other relatives—no matter how close the relationship—are not included. Any one or more of the eligible beneficiaries may file suit, but the suit must be brought for the benefit of all eligible claimants. If none of the eligible individuals files within three calendar months of the death, the executor or administrator of the decedent’s estate may—and in most cases must—bring the action on their behalf.5

Texas wrongful death damages fall into two broad categories: economic losses and non-economic losses. Economic damages are designed to compensate the statutory beneficiaries for tangible, measurable losses, including:6

  • Loss of financial support the deceased would have provided over the course of their lifetime;
  • Loss of household services, such as childcare, home maintenance, and other contributions that must now be replaced;
  • Loss of advice, counsel, guidance, and practical support;
  • Costs incurred by surviving family members as a direct result of the death, such as mental health treatment; and
  • Loss of inheritance—the present value of what the deceased would likely have accumulated and left to the statutory beneficiaries had they lived a natural lifespan.

Non-economic damages—often the most significant component of a wrongful death award—compensate for losses that cannot be reduced to a dollar figure, including:7

  • Mental anguish: the emotional pain, torment, and suffering experienced by the survivors as a result of the death; and
  • Loss of companionship and society, meaning the positive benefits of love, comfort, and closeness that the beneficiaries have lost.

Non-economic damages are often awarded per survivor, and jurors can be given considerable discretion in valuing them. The circumstances of the death, the nature of the relationship, and the documented impact on each surviving family member can all play a significant role in the jury’s assessment.

Texas law permits punitive damages in wrongful death cases where the defendant’s conduct was grossly negligent, malicious, or fraudulent. The standard of proof is “clear and convincing evidence”—higher than the preponderance standard that would apply to other elements of the case.8 In Texas, punitive damages may not exceed the greater of: (1) two times economic damages plus an amount equal to non-economic damages found by the jury, not to exceed $750,000; or (2) $200,000.

Separate from the wrongful death claim, Texas law also allows a survival action.9 Where a wrongful death claim compensates the surviving family members for their own losses, a survival action compensates the estate for what the deceased suffered and lost before death. The distinction is important; these are different injuries belonging to different parties. Damages available in a Texas survival action include:

  • Physical pain and suffering endured between the time of injury and death;
  • Mental anguish experienced by the deceased before death;
  • Medical expenses incurred as a result of the injury;
  • Funeral and burial expenses; and
  • Lost earnings from the time of injury to the time of death.

The strength of a survival claim can be determined by what the deceased experienced before they died. If death was instantaneous or if the deceased was never conscious following the injury, pain and suffering damages would be minimal. If the deceased regained consciousness, experienced the incident, or lingered for any period, the potential award could increase significantly.

The Maritime Framework

Maritime law operates under a distinct set of rules that often reflect its history of balancing the interests of seafarers against those of ship owners and employers. The maritime framework is not a single law. In this instance, three particular sources are relevant: the Jones Act (a federal statute protecting seamen), the Death on the High Seas Act (DOHSA, another federal statute applying to deaths occurring outside of U.S. territorial waters), and general maritime law (a body of common law).

Who Is a “Seaman” and Why It Matters.

The most important threshold question is whether the deceased was a “seaman.” Generally speaking, a seaman works as a crew member aboard a vessel that is in navigation—contributing to the vessel’s function and spending a substantial portion of their time working on the water. Longshoremen, harbor workers, and shoreside employees typically do not qualify as seamen.

This matters because the Jones Act—which provides the most robust set of remedies for maritime workers—applies only to seamen. Workers who are not seamen may still have claims under maritime law, but the remedies and damage caps may be different.

The Jones Act.

The Jones Act, enacted by Congress in 1920, gives seamen (and, if the seaman dies, the seaman’s personal representative) the right to sue their employer or the vessel owner for negligence.10 It is modeled on the Federal Employers’ Liability Act (FELA) the law that governs railroad worker injury claims, and it incorporates FELA’s structure—including its wrongful death and survival provisions—almost entirely.11

A very important and practical consequence of this structure is that the Jones Act preempts state wrongful death statutes for seamen (hence the topic of this article). A seaman’s family cannot bring a Texas Wrongful Death Act claim against the seaman’s employer. Instead, the family’s remedies come from maritime law.

Under the Jones Act, only the court-appointed personal representative of the deceased seaman may file the wrongful death claim.12 The personal representative acts as a trustee for the designated beneficiaries; the personal representative does not bring the claim for the estate itself, but only for the benefit of the beneficiaries identified in the statute. Any award recovered under the Jones Act does not pass through the deceased’s estate.13 It goes directly to the designated beneficiaries and is not subject to the deceased’s debts or distributed under inheritance law.

The beneficiary structure under the Jones Act is hierarchical. The tiers, in order of priority, are:

  • First, the surviving spouse and children of the deceased seaman;
  • Second, the parents of the deceased (only if there is no surviving spouse or children); and
  • Third, dependent next of kin (only if there is no surviving spouse, children, or parents).

For example, a parent whose child was a Jones Act seaman can only recover under the Jones Act if the seaman left behind no spouse and no children.14 If the seaman left behind even one child, the parents are entirely cut out of the Jones Act claim—regardless of how close the relationship was or how much financial support the parent may have received from the seaman.

Damages Available Under the Jones Act.

The Jones Act limits wrongful death damages exclusively to pecuniary losses—economic harms that can be measured in dollars. Specifically, pecuniary damages under the Jones Act include loss of financial support the seaman would have provided to the beneficiaries; loss of household services, including the value of parental nurture and guidance for minor children; and funeral expenses. Non-pecuniary damages, including loss of society, loss of companionship, and loss of consortium, are not available. Additionally, the Jones Act does not allow damages for mental anguish or loss of companionship of surviving family members.

Like Texas law, the Jones Act also provides a survival action—a claim for what the seaman suffered and lost before death.15 Survival damages under the Jones Act include lost wages, (earned and unearned) at the time of death and conscious pain and suffering the seaman experienced before dying. As with Texas survival claims, the key question is whether the deceased was conscious and experienced the injury before dying. A seaman who died instantly or never regained consciousness will generate minimal survival damages. However, a seaman who was aware of their injuries and suffered presents a much stronger survival case.

The Death on the High Seas Act (DOHSA).

The Death on the High Seas Act was enacted in 1920, the same year as the Jones Act, and applies specifically to deaths that occur on the high seas—meaning more than three nautical miles from the U.S. coastline.16 If a seaman or any other person dies in waters beyond that boundary, DOHSA provides the wrongful death remedy. DOHSA applies only to wrongful death claims. It does not create a survival action, and it is not limited to seamen, unlike the Jones Act. Anyone who dies on the high seas may be covered, including a crew member, a passenger, or a recreational boater.

DOHSA provides a cause of action for the exclusive benefit of the deceased’s spouse, parent, child, or dependent relative.17 Importantly, parents are listed directly—without any requirement that they prove financial dependency on the deceased. Dependency is required only for more distant relatives, who fall into the “dependent relative” category.

Like the Jones Act, DOHSA limits recovery to pecuniary losses only. Courts have consistently held that non-pecuniary damages—loss of companionship, loss of society, and emotional distress of survivors—are not available under DOHSA. The permitted damages are the measurable financial losses that the beneficiaries suffered as a result of the death: lost support, lost services, and funeral expenses, same as the Jones Act.

General Maritime Law.

General maritime law is best thought of as a body of common law. For most of American history, general maritime law provided no cause of action for wrongful death. That changed in 1970, when the U.S. Supreme Court ruled in Moragne v. States Marine Lines, Inc. that general maritime law does recognize a wrongful death remedy, and that a wrongful death cause of action was needed to eliminate the anomaly of allowing recovery for non-fatal injuries but not for deaths.18

General maritime law is relevant in cases where the Jones Act alone does not provide a complete remedy. A seaman’s estate might bring a general maritime wrongful death or survival claim if the death was caused by an unseaworthy vessel (a separate theory of liability from negligence) or if the defendant is someone other than the seaman’s employer. Non-seamen who die in territorial waters—close to shore but not covered by DOHSA—may also rely on general maritime law.

The most significant development in general maritime wrongful death law came in 1990, when the Supreme Court decided Miles v. Apex Marine Corp.19 In that case, a mother brought a wrongful death and survival claim after her son, a Jones Act seaman, was stabbed and killed aboard a vessel. She sought, among other things, damages for loss of society. The Supreme Court held that there is no recovery for loss of society in a general maritime wrongful death action for the death of a Jones Act seaman. The reasoning was straightforward: Congress, in passing the Jones Act, chose to limit wrongful death recovery to pecuniary damages. It would be inconsistent—and constitutionally problematic—for the courts to create a broader remedy through general maritime law than Congress allowed under a parallel statute. The result was a uniform rule across the Jones Act, DOHSA, and general maritime law that wrongful death damages for seamen are limited to pecuniary losses.

This means that no matter which maritime theory applies in a case involving a Jones Act seaman, the surviving family members will not recover damages for grief, emotional pain, or the loss of a loved one’s presence in their lives. Those categories of loss are simply not compensable under federal maritime law for deceased seamen.

General maritime law does recognize a survival action, and it is available in cases where the Jones Act alone is insufficient—for example, when a seaman’s death results from an unseaworthy vessel or from the negligence of a third party who is not the employer. Survival damages under general maritime law follow the Jones Act and provide damages for pre-death conscious pain and suffering, and lost wages.

If the person who died was not a seaman—a harbor worker or longshoreman—and the death occurred in territorial waters (within three nautical miles of shore), a different damages framework may apply. In a Supreme Court decision (Sea-Land Services, Inc. v. Gaudet, 1974), prior to Miles, loss-of-society damages were permitted in general maritime wrongful death claims for non-seaman who died in territorial waters.20 Miles narrowed that holding, but the remedy remains available in certain non-seaman cases. This distinction is subtle but consequential for cases involving workers who were not crew members and died within U.S. territorial waters.

Texas Law v. Maritime Law

The following comparison highlights the key distinctions.

Who Can Recover?

Under Texas law, the eligible beneficiaries are the surviving spouse, children, and parents—all three groups simultaneously, without any hierarchy. A parent does not have to establish that no surviving spouse or children exist before pursuing their claim.

Under the Jones Act and DOHSA, the structure is more rigid. The Jones Act uses a hierarchical system: if a surviving spouse or children survive the deceased, parents receive nothing under the Jones Act. DOHSA lists parents among the eligible beneficiaries, but again, recovery is limited to pecuniary losses.

The parent of a Jones Act seaman who is survived by a spouse or child cannot be the beneficiary of the Jones Act wrongful death claim. A parent in that situation could pursue a general maritime law claim, but even then, the damages are limited to pecuniary losses, and the parent must demonstrate actual financial dependence on the deceased to recover.

Wrongful Death Non-Economic Damages.

Texas law allows full non-economic damages in wrongful death cases: mental anguish, grief, loss of companionship, loss of society. Under maritime law, however, the rule is uniform that non-pecuniary damages are not available for Jones Act seamen, regardless of whether the claim is brought under the Jones Act, DOHSA, or general maritime law.

In practical terms, this means that the non-economic damages that often drive large verdicts in Texas wrongful death cases are simply not available in a Jones Act seaman case, and generally for most wrongful death claims brought under maritime law. Instead, the damages case becomes built on expert testimony about future earnings, support, and household services.

Texas law allows punitive damages for gross negligence, subject to the caps described above. The maritime framework, however, is more complicated. Under the Jones Act, DOHSA and general maritime law, punitive damages have historically been unavailable in wrongful death cases—the courts have generally held that the pecuniary limitation on damages prevents punitive awards. As a general matter, beneficiaries pursuing a Jones Act wrongful death claim should not count on or even plead punitive damages.

Survival Damages.

Both Texas and maritime law recognize survival claims and the categories of damages overlap significantly—pre-death pain and suffering, and lost earnings from the time of injury to death. The strength of a survival claim under either system depends heavily on the facts of the death. If the deceased was rendered immediately unconscious and died quickly, survival damages will be limited. Medical and funeral expenses are recoverable under both systems.

A notable difference is that Texas law expressly permits recovery for loss of enjoyment of life, which could provide an additional measure of recovery.

The Role of the Personal Representative.

Under Texas law, the surviving spouse, children, and parents can each bring their own wrongful death claim, or one may sue on behalf of all. Under the Jones Act, only the personal representative of the estate may bring the wrongful death claim, and the representative acts as a trustee for the beneficiaries—not for the estate itself. Individual beneficiaries do not have standing to sue; they must proceed through the representative. Settlement authority also rests exclusively with the representative, with only narrow exceptions where a beneficiary may act independently.21

When a death occurs in or around navigable waters, state wrongful death statutes are likely preempted, and the framework of maritime law will dictate the claims, beneficiaries, and available damages. For those navigating a maritime death claim, it is important to keep the differences discussed in mind.

1 Tex. Civ. Prac. & Rem. § 71.001 et. seq.
2 Russell v. Ingersoll-Rand Co., 841 S.W.2d 343 (Tex. 1992).
3 Castillo v. Hidalgo County Water District No. 1, 771 S.W.2d 633 (Tex. App.—Corpus Christi 1989).
4 Tex. Civ. Prac. & Rem. § 71.004.
5 Id.
6 See, e.g., Halliburton Company v. Olivas, 517 S.W.2d 349 (Tex. Civ. App.—El Paso 1974, no writ); see also Moore v. Lillebo, 722 S.W.2d 683, 687 (Tex.1986).
7 Moore v. Lillebo, 722 S.W.2d 683, 687 (Tex.1986).
8 See, e.g., Mobil Oil Corp. v. Ellender, 968 S.W.2d 917, 921–922 (Tex. 1998); THI of Texas at Lubbock I, LLC v. Perea, 329 S.W.3d 548, 581 (2010).
9 Tex. Civ. Prac. & Rem. § 71.031.
10 46 U.S.C. § 30104.
11 45 U.S.C. § 51.
12 See Hassan v. A.M. Landry & Son, Inc., 321 F.2d 570 (5th Cir. 1963).
13 See Lindgren v. United States, 281 U.S. 38 (1930); Friedman v. McHugh, 168 F.2d 350 (1st Cir. 1948); Rowston v. Oglebay Norton Co., 180 F. Supp. 803 (N.D. Ohio 1960).
14 Sistrunk v. Circle Bar Drilling Co., 770 F.2d 455 (5th Cir. 1985); see also In re American River Trans. Co., 490 F.3d 351 (5th Cir. 2007).
15 Rohan for Rohan v. Exxon Corp., 896 F. Supp. 666 (S.D. Tex. 1995).
16 46 U.S.C. § 30302.
17 MacLay v. M/V SAHARA, 926 F. Supp. 2d 1209 (W.D. Wash. 2013).
18 398 U.S. 375 (1970).
19 498 U.S. 19 (1990).
20 414 U.S. 573 (1974).
21 Benoit v. Fireman’s Fund Ins. Co., 355 So.2d 892 (La.
1978).

Blogs

IRS Provides Gift Tax Safe Harbor for Contributions to Trump Accounts

June 29, 20262 minute read

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The IRS has issued Revenue Procedure 2026-25, offering welcome relief to individuals who contribute to “Trump accounts,” the new tax-favored savings vehicles for minors created under Section 530A of the Internal Revenue Code by the One, Big, Beautiful Bill Act. The guidance addresses an open question that had created uncertainty for millions of donors: whether contributions to these accounts must be reported on a federal gift tax return.

Trump accounts are a form of traditional IRA established for the benefit of an eligible individual under age 18 at the time of the initial account election. During the “growth period” (before the beneficiary turns 18), the account is subject to significant distribution restrictions, and contributions from individuals are generally capped at $5,000 annually.

Because the beneficiary cannot freely access funds during the growth period, questions arose as to whether contributions should be treated as gifts of a “future interest” in property. Under longstanding gift tax rules, future-interest gifts do not qualify for the annual per-donee gift tax exclusion and must be reported on Form 709, regardless of amount. With nearly six million Trump account elections already on file as of June 2026, treating contributions as future interests could have required several million new gift tax filings annually, a substantial compliance burden for donors and a significant administrative strain on the IRS, given that the agency currently processes only about 300,000 gift tax returns per year.

The Safe Harbor

Rev. Proc. 2026-25 resolves this issue by creating a safe harbor. If a taxpayer meets all of the following conditions for a given calendar year, contributions to Trump accounts will be treated as completed gifts that are not future interests, qualifying for the annual exclusion and relieving the donor of any obligation to file a gift tax return for those contributions:

  1. The taxpayer is an individual;
  2. The only taxable gifts made during the year are cash contributions to one or more Trump accounts, made before the beneficiary turns 18;
  3. Total gifts to each beneficiary (including Trump account contributions) do not exceed the annual exclusion amount ($19,000 for 2026);
  4. The contributions do not generate gift or GST tax liability after applying the donor’s remaining lifetime exclusion or GST exemption; and
  5. No gift tax return is otherwise required or filed for that year for any other reason (e.g., portability elections or GST allocations).

If any requirement is not met, the safe harbor does not apply, and the donor must file a gift tax return reporting all gifts for the year, including the Trump account contributions as future-interest gifts.

For the vast majority of donors, this guidance eliminates an unnecessary filing burden. However, clients making larger gifts, multiple Trump account contributions to the same beneficiary, or gifts that otherwise trigger a filing obligation should be advised that the safe harbor may not apply, and careful tracking of cumulative gifts per beneficiary remains essential. For more information about this update, contact Liskow attorneys Leon Rittenberg III, Caroline Lafourcade, and Kevin Naccari, and visit Liskow’s Tax Practice page.

Blogs

IRS Rules Estate Administration Exception Can Shield Certain Stock Redemptions from Private Foundation Self-Dealing Rules

June 23, 20262 minute read

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In Private Letter Ruling 202625012, released June 18, 2026, the IRS addressed the application of the private foundation self-dealing rules under Internal Revenue Code § 4941 to a family-owned corporation, related revocable trusts, and a private foundation that was a potential charitable beneficiary. The ruling involved several related individuals who owned a majority interest in a closely held corporation. 

Each individual had established a revocable trust that would become irrevocable at death. The trusts authorized trustees to direct a portion of trust assets, including corporate stock, to charitable organizations, including a private foundation, through an irrevocable post-death designation. The corporation also held options allowing it to purchase stock from the trusts or estates following the death of a shareholder. The purchase price was required to equal fair market value as determined by an independent appraisal and could be paid in cash, a promissory note, or a combination of both.

The principal issue was whether the corporation’s exercise of the option and purchase of stock that might ultimately pass to the private foundation would constitute an act of self-dealing. Because the corporation, the trusts, and the foundation were all treated as disqualified persons under § 4941, the transaction could have triggered significant excise taxes absent an exception.

The IRS concluded that once a trustee makes an irrevocable determination directing charitable assets to the foundation, the estate administration exception under Treasury Regulation § 53.4941(d)-1(b)(3) can apply, provided the regulatory requirements are satisfied. As a result, the corporation’s purchase of stock from the trust at fair market value during the applicable administration period would not constitute indirect self-dealing. The ruling further provides that if part of the consideration consists of a promissory note, the foundation’s receipt and holding of that note will not be treated as a prohibited extension of credit, and future payments of principal and interest under the note likewise will not constitute self-dealing.

The IRS also ruled that, before a trustee makes the irrevocable charitable designation, sales of stock by the estate or revocable trust to family members, related trusts, or the corporation for cash generally will not constitute direct or indirect self-dealing. According to the IRS, the foundation does not possess a sufficient interest or expectancy in the stock before the charitable designation is made because the trustee retains discretion over whether the foundation will receive any portion of the charitable assets.

Although private letter rulings apply only to the requesting taxpayer, PLR 202625012 provides useful guidance for estate planners and owners of closely held businesses. The ruling confirms that carefully structured redemption arrangements may be implemented without violating the private foundation self-dealing rules, particularly when transactions occur during estate administration. For more information about this update, contact Liskow attorneys Leon Rittenberg III, Caroline Lafourcade, and Kevin Naccari, and visit Liskow’s Tax Practice page.

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IRS Signals New Opportunity Zone Rules Following OBBBA Overhaul

June 22, 20262 minute read

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The IRS has announced its intent to issue proposed regulations and transitional guidance on qualified opportunity zones (QOZs) as revised by the One, Big, Beautiful Bill Act (OBBBA), the Republicans’ 2025 tax and spending law. Notice 2026-40 provides important guidance for fund sponsors and investors navigating the shift to OBBBA’s new designation system.

Under prior law, no more than 25% of a state’s low-income community census tracts could be designated as QOZs, with designations running through 2028 (2027 for Puerto Rico). OBBBA replaces this one-time designation with a recurring process, raising the question of whether previously designated tracts would count against a state’s 25% cap going forward.

Previously designated QOZs will not reduce the number of census tracts a state’s chief executive may nominate for the designation period beginning January 1, 2027. Each designation period is evaluated independently. For zones certified during 2026, the designation period runs January 1, 2027 through December 31, 2036, a 10-year window starting on the “applicable start date” (the January 1 following certification).

The notice also clarifies gain deferral mechanics. Gains realized on or before December 31, 2026, and invested in a qualified opportunity fund (QOF) by that date remain governed by prior rules, generally requiring recognition by the earlier of an inclusion event or December 31, 2026. Taxpayers still holding a qualifying investment on that date must recognize “deemed included gain,” but their original deferral election remains in effect, preserving eligibility for a future basis step-up.

For gains invested in a QOF on or after January 1, 2027, the OBBBA’s new five-year inclusion timeline and revised basis adjustments apply. Inclusion event gain, defined as gain triggered by an event other than the original sale, can still qualify for deferral if reinvested within 180 days.

A key transitional issue involves tangible property acquired by QOFs and QOZBs after 2026 for use in zones designated under prior law. Because such “previously designated” zones lack an OBBBA “applicable start date,” such property generally cannot qualify as qualified opportunity zone business property unless it falls within one of two exceptions. Those exceptions consist of: (1) property acquired under a pre-2027 written working capital plan meeting existing safe harbor requirements, or (2) property acquired as an ordinary-course replacement of existing business property, rather than a business expansion.

Notice 2026-40 offers welcome certainty for the 2027 designation cycle and a roadmap for funds managing pre-OBBBA investments through the transition. Sponsors and investors should review existing working capital plans and acquisition timelines now to confirm they fit within the notice’s safe harbors before year-end. For more information about this update, contact Liskow attorneys Leon Rittenberg III, Caroline Lafourcade, and Kevin Naccari, and visit Liskow’s Tax Practice page.

 

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