The iconic Barneys New York was once among New York City's most successful department stores of the 1960s and 1970s. It was founded in 1923 by Barney Pressman and later helmed by his son, Fred Pressman. Though the store ultimately went out of business in 2020, the Pressman family's ownership helped build a lasting legacy of wealth – one that has recently come under scrutiny following the death of Phyllis Pressman, wife of Fred Pressman, at the age of 95.
New York has some of the highest taxes in the country. To avoid them, some people claim residency in another state – often by buying a home there – while still keeping a residence in New York. However, New York's tax authorities have strict rules to determine whether someone has truly moved out of the state. Many people think that simply getting an out-of-state driver's license is enough, but they are mistaken.
This becomes particularly relevant in matters of estate planning. Under New York law, a surviving spouse is entitled to a portion of the estate, but there is no such requirement for children. Parents can legally disinherit their children if they choose.
In addition, under New York's False Claims Act, a whistleblower can receive up to 30% of any money recovered by the state – often in cases involving tax fraud. Such claims typically come from insiders with direct knowledge.
When Phyllis Pressman died, she left behind four children but had little or no relationship with her son, Bob Pressman. In her will and trust, she explicitly disinherited him "for reasons he well knows." Her estate is expected to be in excess of $100,000,000. After her death, her estate asserted that she was a resident of West Palm Beach, in Florida. However, Bob recently filed a whistleblower lawsuit alleging that his mother's true domicile was New York, and that as a result the state is owed tens of millions of dollars. Though Phyllis owned a home in Florida, Bob's lawsuit claims that Phyllis resided in New York for six years prior to her death. In the lawsuit, Bob contends that his mother moved to her Florida home six months before she passed away, only after she learned she was terminally ill.
Bob Pressman alleges his mother actually lived in her Hamptons estate (now for sale at $38.5 million) and her Manhattan apartment (for sale at $3.95 million). Bob further claims that one reason he was disinherited is that, unlike his siblings, he would not aid in the falsification of his mother's residency. If the Pressman Estate loses the case, Bob could receive 30% of the recovered taxes – potentially tens of millions of dollars.
While some have called the lawsuit an act of "revenge," it could ultimately yield Bob far more than what his mother intended to leave him. The case remains in its early stages, and all allegations are yet to be proven. We will continue to monitor the case for further developments.
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