Perlin Estate Planning

How Do I Draft a Living Trust in Montana?

 

 

 

 

 

 

 

 

Living trusts are legal documents that are designed to make certain that your assets are delivered to the beneficiaries you select. KAKE’s recent article, “How to Create a Living Trust in Montana,” explains how to create a trust in the Treasure State. Here are the basic steps:

• Make an inventory of your property to see what to place in your trust.
• Name a trustee to manage your trust.
• Create a trust document by hiring a trust lawyer.
• Sign and notarize the document.
• Fund your trust.

A living trust is a legal document that allows you to transfer your property and assets to any beneficiaries you name in the arrangement. This goes into effect, as soon as you create it. You can still be alive and either name a trustee or act as the trust’s trustee. If you’re the initial trustee, your successor trustee will carry out your wishes and distribute your property to anyone you’ve chosen as a beneficiary. There are two types of living trusts: revocable and irrevocable living trusts. With revocable trusts, you can change or cancel the trust, but an irrevocable trust is permanent.

One reason people create living trusts, is that it’s a more private way of protecting their assets and determining which of their beneficiaries gets what. As an alternative, you can go through the probate process.

If creating a living trust sounds interesting, you’ll have many advantages for protecting and distributing your property. With a living trust, you can name a trustee and choose beneficiaries while you’re still alive. You can also choose which assets and at what date certain assets will be given to your beneficiaries.

During the estate planning process, it’s good to know if Montana has estate or inheritance taxes. Estate taxes may affect your living trust, and your estate size will determine how much you’re taxed.

Montana doesn’t have an inheritance tax or estate tax, but a federal estate tax applies to those with estates worth more than $11.4 million ($22.8 million for married couples).

Whether you use the probate process, a living trust or a will, feel free to call (305) 443-3104 to set up an appointment to discuss creating an estate plan to protect your assets.

Reference: KAKE (September 30, 2019) “How to Create a Living Trust in Montana”

How Did the Son of a Wealthy California Property Developer Get $15M, after Being Left out of His Dad’s Will?

“Almost three years after San Diego developer and philanthropist Conrad Prebys died, a court fight continues over control of his $1 billion estate.”

Debra Turner, the longtime partner of the San Diego developer and philanthropist Conrad Prebys, has tried to sue the directors of the Conrad Prebys Foundation for their decision to give $15 million to Prebys’ son, Eric, who had been left nothing in estate planning documents.

The San Diego Union-Tribune reported in the article “Court fight continues over control of $1 billion Prebys estate,” that in January, a San Diego Superior Court judge dismissed Turner’s suit, holding that she had no legal standing to bring it. She then filed an amended complaint. However, recently, the judge has dismissed her lawsuit.

The legal fight has kept the estate money from going to the charities of Prebys. During his lifetime, he donated more than $350 million to various organizations, most of them in the San Diego area.

Turner says the issue arises from the decision to disregard Prebys’ wishes and give money to his only child, a physicist at UC Davis, who had been in line for $40 million, before the trust papers were rewritten in 2014 to exclude him.

“When Conrad made a decision, it was done, and he was adamant about revoking Eric’s gift,” Turner told The San Diego Union-Tribune in 2017.

Prebys died in 2016, and his trust designated 12 individuals and institutions to receive specific gifts. He left the majority of his assets to the foundation to “support performing arts, medical research and treatment, visual arts, and other charitable purposes” consistent with the causes he cared about when he was alive. However, a few months after his death, the foundation directors—five unpaid volunteers handpicked by Prebys met to consider the next steps. The group included Turner—with whom he lived as a couple for almost 17 years—and Laurie Anne Victoria, a longtime executive with his real-estate company. She is the trustee of the estate.

According to Turner’s lawsuit, a foundation attorney told the directors that Eric might contest the will, and if he won, he could “get it all.” Eric’s attorney sent a letter to the board, raising questions about Conrad’s mental competency at the time that the trust was amended. Eric also believed that Turner exerted undue influence on his financial choices. Turner denied the allegations. However, in December 2016, the other directors authorized a settlement. Eric got $9 million, plus $6 million to cover the estate taxes.

Turner then sued the board members on behalf of the foundation, alleging they had breached their duties to protect the estate’s assets.

Victoria defended the settlement as “the only reasonable decision” to avoid the uncertainty, expense and publicity of litigation with Eric and to begin fulfilling Conrad’s charitable wishes. She said the money represented less than 1% of the overall estate.

Turner is no longer on the board, and in dismissing her suit, Superior Court Judge Kenneth Medel said that, under corporate law, Turner can’t sue on behalf of the foundation because she’s no longer a director and lacks standing. Although she was a director when she filed the suit, the law requires her to maintain board membership throughout the litigation, according to the decision.

Reference: The San Diego Union-Tribune (March 29, 2019) “Court fight continues over control of $1 billion Prebys estate”

Did the Queen of Soul Leave a Will?

“Three handwritten wills have been found in one of the homes of the late Queen of Soul Aretha Franklin, all with a theme of providing for her four sons and even commentary involving others she felt were insincere or ‘grossly inefficient,’ according to the documents.”

Legendary vocalist Aretha Franklin passed away last August of pancreatic cancer. It was believed that she died intestate—without a will, even though she was survived by four adult sons.

The Detroit News’s recent article, “Handwritten wills found in Aretha Franklin home favor her four sons” reports that three handwritten wills have been discovered in one of her homes.

These documents suggest that Aretha had been considering what she wanted to leave to her heirs, if indeed the wills are found to have been written in her hand. Two of the wills discovered in a locked cabinet were dated 2010, eight years prior to her death.

Legal documents were filed by attorneys David J. Bennett and Kevin M. Check, who were hired by the personal representative of the estate, Franklin’s niece, Sabrina Garrett Owens. Bennett has been Franklin's lawyer for more than 40 years.

According to the documents, Owens discovered a key to a locked cabinet that she previously couldn’t open. She found two holographic wills inside that were dated June 21, 2010 and October 20, 2010. Owens also found a spiral notebook with another purported holographic will dated March 31, 2014, under the cushions of a living room couch.

The court filing says that the heirs and their counsel “have been unable to reach a resolution with each other over the admission, validity and dispositive provisions of the purported Holographic Wills.”

Unlike traditional wills, the signing of holographic wills aren’t witnessed and are probated in several states, providing they’re authenticated by other means, such as by verifying the handwriting and the intended wishes they contain. Michigan recognizes holographic wills.

Owens has asked for direction from County Probate Judge Jennifer S. Callaghan on how to continue as personal representative in the matter. A hearing is scheduled for this summer.

“She remains neutral and wishes that all parties involved make wise choices on behalf of their mother, her rich legacy, the family and the Aretha Franklin estate,” a statement said of Garrett Owens, according to the Associated Press.

The new wills certainly add confusion to the probating of Franklin’s estate. The handwritten wills are hard to read and may be a bit embarrassing. If they were personally written by Franklin, some sections contain comments about relatives, attorneys, and even a “Ha, Ha, Ha” and “BS” when describing someone. In an another aside, she said that one attorney had been “grossly inefficient.”

Each document starts with “being in sound mind and physical health” pronouncement—one noted “with the exception of high blood pressure, a mass on the pancreas, diabetes …”

A common theme of these wills is that Aretha clearly wanted to care for her sons: she wanted her automobiles and property to be supervised by one son; and all of her artwork, copyrights, and future royalties from her music to be shared equally by all her boys. She also wanted them to have her personal papers, awards and gold records.

One statement said that she wanted two of her sons to “take business administration classes and get a certificate or degree.” She specifically directed that her grandchildren are also to be gifted.

The only dollar figure listed in the paperwork is a $1.6 million bank account. However, Aretha’s total worth from her various properties, jewelry, royalties and other assets have been estimated at roughly $80 million.

The IRS says that Franklin owed more than $6.3 million in back taxes. However, Bennett says that Franklin paid all her debts, including several million dollars in federal taxes.

Reference: The Detroit News (May 20, 2019) “Handwritten wills found in Aretha Franklin home favor her four sons”

BCP Paralegal Florencia Rossato to Serve on Florida Registered Paralegals Enrichment Committee

The Law Office of Brian C. Perlin, P.A. is proud to recognize our very own paralegal, Florencia Rossato, for her new appointment to the Florida Registered Paralegals Enrichment Committee. The FRP Enrichment Committee aims to heighten awareness surrounding the paralegal profession and FRP program in Florida in compliance with Rules Regulating the Florida Bar Chapter 20. Florencia, alongside 40 other members, was appointed to highlight the paralegal profession and importance of becoming a Florida Registered Paralegal. Congratulations Florencia from all of us at The Law Office of Brian C. Perlin, P.A.!

How Do I Know If My Mom’s Estate Was Divided Properly?

“Try to work things out with the executor, before you take the next steps in a dispute over an estate.”

It’s not uncommon for a senior to let her adult children know about her life insurance policies. In many cases, it’s because that child or all of her children are the beneficiaries. It is also not unusual for one child to be named executor of the parent’s estate.

The trouble arises, if Mom took actions before she died and didn’t tell anyone, or if she only told one child. In this case, the mother kept important documents in a safety deposit box. A brother, who lived closer to the mother, told his sister that before their mother died, she made some big decisions: she cashed out the life insurance policies, emptied the safety deposit box, sold her car and signed a reverse mortgage on the house.

Therefore, how does the sister determine if whatever's left was evenly divided?

It will take some investigating. The good news is that there's always a paper trail.

nj.com’s recent article asks, “My mom died. How can I know I'm getting the right inheritance?” As the article explains, if the policies were cashed out by the parent, they no longer exist.

If you know the name of the insurance company and policy number, you can try to call the life insurance company’s home office to confirm this. However, they may not give out much information, if you weren’t the named beneficiary.

There are a few tips to help track down life insurance old policies.

If Mom had a reverse mortgage, then you know she owned a home. If the home wasn’t owned jointly, then it would be a probate asset.

One way to determine this, is to check with the county court where she died, to see if a will was probated or any estate administration application was filed. The home would need to be sold by the executor or administrator, so there would be some paperwork. If there was, you can contact the executor/administrator for more information.

With a parent’s safety deposit box, the executor/administrator, once appointed, would have the authority to empty the contents of the box. However, if Mom previously emptied the contents, there’d be nothing for the executor/administrator to retrieve. You should check with that individual.

If you don't believe the executor is being honest with you, you may need to work with your own attorney to make sure you’re getting what you're due from Mom’s estate.

Reference: nj.com (February 21, 2019) “My mom died. How can I know I'm getting the right inheritance?”

What Estate Planning Did Anthony Bourdain Have?

“Anthony Bourdain chased gusto all over the planet, occasionally tracking into war and disaster zones along the way. There were moments when he could’ve gotten in over his head and never come home. A personal disaster plan would have been the responsible way to approach that kind of life. From the way news of his death spread last week, it’s fairly clear that level of forethought, just wasn’t his style.”

Wealth Advisor’s recent article, “Anthony Bourdain Left Loved Ones In Limbo But The Heirs Will End Up Better Than Michael Jackson’s” says that Anthony Bourdain’s family needed a disaster plan to minimize strain in the worst moments and smooth the financial transition afterward. When his loved ones are already stunned and vulnerable, they now must make the hard decisions about managing the press, the authorities and the fans. We can only guess about his financial situation.

Although his life revolved around his personal participation in every venture, there’s no indication that the work can continue without him.

It doesn’t look like there was any succession planning here. It remains to be seen if there was a plan to keep his businesses afloat, without his personal participation.

Bourdain never really created much of an institution around himself: the copyright on his books was never assigned to any trust, holding company, or other entity. He received production credit on his shows, but the actual production company belonged to other people. In addition, there is no restaurant for his heirs to operate or sell off. His books are seeing a posthumous bestseller effect now. The odds are good that ratings of unaired episodes will be the best ever. Bourdain’s daughter will see her piece of that income.

If he left a will, the rights and royalties of those works may be placed into a trust for her now and to use when she’s an adult. Otherwise, the money flows into Unified Gifts To Minors Act (UGMA) accounts, while the assets themselves sit in Unified Transfers To Minors Act (UGTA) accounts, until she turns 18.

Unlike Michael Jackson’s kids, she has an immediate parental guardian to look out for her. It looks like Bourdain’s ex-wife received the $3 million New York condo as part of their divorce. She might already have all of the Bourdain cash, as it is. Otherwise, any child support now disappears.

Bourdain may have left plans for someone to monetize his legacy. With the right management, the Bourdain name and likeness could continue generating income. There could be book drafts to publish, TV concepts to pitch and restaurant concepts looking for investors. There is potential, and a creative and savvy executor can turn Bourdain’s name into the empire he never chased in life.

Reference: Wealth Advisor (June 10, 2018) “Anthony Bourdain Left Loved Ones In Limbo But The Heirs Will End Up Better Than Michael Jackson’s”

Wham! Pop Star’s Partner Wants Large Chunk of Estate

“George Michael’s ex-boyfriend has joined the battle for a slice of the late superstar’s millions.”

The Careless Whisper singer, who passed away in December 2016, left his multi-million estate and properties to his two sisters Melanie and Yioda.

However, Trust Advisor’s recent article, “George Michael Exes in Legal Fight” reports that Kenny Goss, George’s former partner of 15 years, is claiming a large part of his estate, on the grounds he helped the troubled singer through hard times, The Sun reports.

The American businessman has hired counsel.  He claims that George always told him he’d look after him, “see him right and that he would not want for anything,” a source said.

Due to the fact they were together for many years and Kenny really looked after George a great deal, he feels that George’s will doesn’t accurately reflect this.

Kenny joins Lebanese hairdresser Fadi Fawaz, who was with George for five years until his death on Christmas Day 2016, in challenging the will. Fawaz was instructed to move out of his ex-lover’s mansion. Fadi also won’t inherit the three-bedroom home in London’s Regent’s Park, where he’s currently living. The Mirror reports that his hopes of owning the property are “all but over.” An insider told the paper: “Fadi realizes his days there are likely to be numbered, as it’s been made clear he won’t be inheriting the place.”

“He’ll be sad to leave, as it’s where he and George shared so many happy moments.”

Fadi said earlier this year that he was forced to sell the car George gave him because of his debt. The Sun reported George’s possessions were being repossessed, after Fadi fell behind with payments on the singer’s North London home. He’s now selling off George’s possessions. In addition, the singer’s family also gave Fadi money, despite claims he’s broke.

Fadi was sleeping in his car on Christmas Eve 2016—the night of George’s death. He found George’s body in the morning and called the police.

There is no husband, no children and no obvious heirs. As a result, there’s been some speculation over what will happen to his estate. George was godfather to Martin Kemp’s children Roman and Harley, who could be in line to inherit a share, along with Geri Halliwell’s daughter Bluebell—despite his ex, Goss, actually being her godfather.

Reference: Trust Advisor (May 29, 2018) “George Michael Exes in Legal Fight”

Two People Said to be Heirs of Prince’s Estate Rejected

“The Minnesota Supreme Court rejected two people claiming to be heirs to Prince’s estate.”

Minnesota Supreme Court Chief Justice Lorie Gildea recently issued an order denying the petitions of Darcell Gresham Johnston and Venita Jackson Leverette.

Minneapolis Star-Tribune reported in its recent article, “Minnesota Supreme Court rejects two Prince heirs,” that Chief Justice Gildea’s order didn’t give a reason for the denial.

Johnston and Leverette are the first two claimants that have been rejected by the Supreme Court. In September 2017, these two and three others were denied claims by the Minnesota State Court of Appeals.

All five of these people claimed to be half-siblings of the Minneapolis rock star. Johnston argued that he was related to Prince through Loyal James Gresham Jr., who he claimed was Prince’s real father.

Likewise, Leverette made a similar argument, but claimed that another man, Alfred Jackson, was Prince’s father.

Prince was found dead April 21, 2016, at his Paisley Park estate. The death resulted from an accidental overdose of the painkiller fentanyl.

Prince didn’t leave a will. As a result, Minnesota probate law dictates who his heirs will be.

Since Prince died, a host of individuals have come forward and filed claims to the artist’s multi-million-dollar estate.

The Minnesota Supreme Court ruling reaffirms the list of people who stand to inherit Prince’s estate, which has been estimated at between $100 million and $300 million before taxes.

The list includes Prince’s sister, Tyka Nelson, and his half-siblings, John Nelson, Sharon Nelson, Norrine Nelson, Omarr Baker and Alfred Jackson.

Prince’s heirs have been going through a very contentious court process to determine how much money each person will receive.

Reference: Minneapolis Star-Tribune (November 29, 2017) “Minnesota Supreme Court rejects two Prince heirs”

Should I Use a Trust to Avoid Probate?

“The vilification of probate extends nationwide and affects everyone’s perceptions.”

Progressive states like California have led the charge in finding and implementing methods and techniques to avoid probate, reports The PV Democrat in its recent article entitled “Avoiding probate - panacea or problem.”

We’ve seen numerous articles that discuss the role of trusts in estate planning, which frequently advise you to make every effort to avoid probate. But this isn’t always the right answer.

Probate is a court process that’s designed to protect your intentions for the distribution of your assets after death. It gives finality to creditor claims against the estate and authorizes the probate court to insure compliance with a decedent’s wishes. It requires that an individual’s financial assets be defined, insures that they’ll be given to the proper persons and provides a procedure for protecting the distribution that was planned by the decedent.

There are some risks in using a trust rather than going through probate. They include these items:

Legal Contests. When someone is left out of a trust or if the trust assets are improperly restricted in their use, then he or she can initiate a contest. Undue influence is frequently alleged when a trust is created just before death.

Probate Protections. A will requires two or more witnesses, written testimony of the witnesses and must be notarized in some states.  However, a trust can be created with just a signature and even implied in some instances with no written document. Therefore, it may be easier to create an improper trust than an improper will.

The Potential for Mistake and Misuse. If the document is a trust, a transfer on death account (TOD), a joint ownership or a simple deed, it is easier to have an elderly loved one sign a single document like a trust, instead of trying to have him or her pass the scrutiny of two witnesses and a notary, as required for a will.

The use of estate planning techniques other than a will and probate may often be simpler and perhaps easier to implement and administer after death.  However, they need to be carefully planned and completed well in advance of death. Otherwise, it can mean family conflicts and court challenges. Work with an experienced estate planning attorney and see if a trust is right for your situation.

Reference: (Pauls Valley OK) PV Democrat ((September 27, 2017) “Avoiding probate - panacea or problem”

Lawsuit Filed Against Estate of Driver in Vehicle Crash

“Eight people have filed a lawsuit claiming they were left permanently disabled last year, when the party bus in which they were riding was struck from behind by a Hummer whose driver died in the crash.”

Brian Rolando was killed on May 7, 2016 when his Hummer rear-ended a party bus about 3 AM in Paterson, New Jersey. His estate now faces some legal issues because of the circumstances surrounding his death.

Wealth Advisor notes in its June 26 article, “8 People Hurt In Party Bus Crash Sue Dead Driver's Estate,” that Rolando's father, Maurice, is also named as a defendant, because he owned the Hummer. The passengers are all under age 30.

In the complaint, the party bus passengers claim they suffered "serious and permanent injuries" from Rolando's alleged carelessness and recklessness. The passengers were leaving a party, when the crash occurred, says the office of the attorney who filed the lawsuit. Most of the plaintiffs’ injuries were to the neck and back, but some suffered head injuries.

In addition, the passengers have brought a claim against an unnamed business that’s thought to have served alcohol to Rolando before the crash. The passengers’ attorneys contend that Rolando was intoxicated. However, the specific business wasn’t named in the suit because attorneys have yet to determine the location where Rolando was allegedly drinking. In addition to Rolando, the suit names the party bus driver Tomasz Skorniewski. He worked for Gallery Limousine of New York, and is accused of recklessness, carelessness, and of maintaining or repairing the bus in a condition that contributed to the crash, the complaint states.

In addition to the drivers, the complaint names Philadelphia Indemnity, State Farm and GEICO insurance companies, claiming they failed to pay claims in the accident.

Brian Rolando was born in Wayne, NJ, and lived in West Milford for most of his life, before moving to Fair Lawn. His obituary said that he was a security guard who earned an associate's degree in criminal justice. He was studying biology/pre-med with honors at Montclair State University, with plans of becoming a cardiologist.

Reference: Wealth Advisor (June 26, 2017) “8 People Hurt In Party Bus Crash Sue Dead Driver's Estate”