Perlin Estate Planning

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”

Playboy Playmate’s Estate Files Wrongful Death Suit against Chiropractor

“The estate of Playboy model Katie May has filed a wrongful death suit, claiming the model would still be alive, if her chiropractor did not make "aggressive neck adjustments," according to court documents.”

Fox News, in its recent article, “Playboy model Katie May's estate sues chiropractor for wrongful death,” reports that the father of Katie May's eight-year-old daughter filed the suit a few weeks ago in Los Angeles County Superior Court. Alex Maimon is seeking a judgement to help pay for the girl’s college education.

The lawsuit, filed by Maimon, claims that Doctor of Chiropractic Eric Marc Swartz was negligent and his care resulted in May's death. The plaintiff says the chiropractor should have sent May to the hospital, instead of treating her after she suffered a serious neck injury during a photo shoot.

May would still be alive today, if not for the chiropractor’s “forceful" and "aggressive" adjustments that tore an artery in her neck and caused her fatal stroke, the lawsuit claims. The complaint goes on to say that Swartz’s “aggressive neck manipulation” caused deadly “bilateral vertebral artery dissections” that blocked blood flow to May’s brain.

May, who was known as the "Queen of Snapchat," died in February 2016, after she suffered a stroke at age 34.

An October 2016 coroner's report ruled her death to be accidental. But Maimon's lawsuit questions the timing of May's death: she died four days after being treated by Dr. Swartz.

Ronald Richards, the attorney for May’s estate, filed the lawsuit against Swartz and his Los Angeles practice, Back to Total Health, on June 14. The lawsuit alleges medical malpractice and negligence, specifically that Swartz mistreated Katie May by adjusting her neck and that he should have recognized she required immediate attention at a hospital.

The Los Angeles County Coroner determined that May died because of an injury sustained during a “neck manipulation by chiropractor.” The plaintiff contends that Dr. Swartz adjusted her neck in a manner that severed her left vertebral artery. This injury blocked blood flow to the brain and resulted in the stroke.

“I think that the coroner’s report corroborates that it was the chiropractor’s manipulation that was the cause of death,” Richards told People Magazine.

Maimon’s complaint states that he first tried to work with the insurance carrier for the chiropractor but had no success. “The carrier forced (Maimon) to file this action by refusing to attend a mediation to help Mia with some college money,” the suit alleges.

Reference: Fox News (June 15, 2017) “Playboy model Katie May's estate sues chiropractor for wrongful death”

Penn State Football Coach’s Estate Looks to Settle Lawsuit

“The Paterno estate’s lawsuit against the NCAA may be resolved without going to trial.”

The estate of former Penn State football coaching legend Joe Paterno, along with former assistant coaches Jay Paterno and Bill Kenney, are suing the NCAA, its president Mark Emmert and former executive committee chair Ed Ray in Centre County Court in Pennsylvania.

The 2013 lawsuit alleges claims of commercial disparagement, defamation, tortious interference and conspiracy. These claims were based on the use of the Louis Freeh report commissioned by Penn State in the NCAA’s consent decree for sanctions with Penn State, concerning the university’s handling of reports of child sexual abuse by Paterno’s former assistant coach Jerry Sandusky.

Specially-presiding Senior Judge John Leete of Potter County recently granted a joint request by the Paternos and the NCAA to file under seal motions for summary judgment and response and reply briefs.

Wealth Advisor reported, in its article titled “Paterno Heirs Move Toward Closure,” that attorneys for both parties filed a joint motion, asking the judge to file under seal “forthcoming dispositive motions.”

That means they’d ask the judge to decide the case, as well as supporting, responsive and reply briefs for those motions.

“The parties anticipate that the motions, responses, replies and supporting briefs will contain portions that have been designated ‘Confidential’ or ‘Highly Confidential'” under a protective order issued by Leete in 2014, Paterno attorney Thomas Weber and NCAA attorney Thomas Scott wrote.

The parties will file redacted public versions at the same time as the sealed documents.

Paterno was fired as head football coach of Penn State in November 2011, after the Pennsylvania Office of the Attorney General revealed the grand jury presentment recommending charges against Sandusky. Sandusky had already retired from his position as the Nittany Lions defensive coordinator, and Paterno died two months later of lung cancer.

The consent decree was replaced, and most of the sanctions were repealed or terminated early. The Paterno estate alleges that the report and sanctions resulted in damage to commercial interests and values, and harmed the former assistant coaches’ ability to find similar work.

Reference: Wealth Advisor (June 19, 2017) “Paterno Heirs Move Toward Closure”

Like an Overdue Bill, Estate Planning Should Be the Next Thing You Tackle

“If your family is like many, estate planning is among the most overdue items on your financial planning to-do list.”

While no one is eager to think about and plan for his or her own demise, which is when these documents come into play, if you welcomed a new baby recently and don’t have an estate plan, then now is the time to create one.

SF Gate’s recent article, “Congrats on Your New Baby! Now It’s Time for an Estate Plan,” says that an estate plan is correctly thought of as a series of legal documents created with a qualified estate planning attorney that sets out your wishes for the disposition of your assets and the responsibility for your dependents, if they are minors when you die. Let’s look at some of the reasons why you should have a professionally-drafted estate plan.

For your children. Many experts say that this is the most important consideration. You’ll designate the person or persons you want to care for your minor children, in the event you and your spouse die unexpectedly. You can designate a single individual or family to manage your children’s financial affairs. This is also known as a Guardian of the Estate. You can also add another to care for your children (Guardian of the Person). The other option is to have one person or family member fill both roles.

For loved ones. Your estate plan will direct your loved ones how to make health care decisions on your behalf, in the event that you become incapacitated. This is a big responsibility for the person who is chosen, so be sure to clearly state your intentions in a Healthcare Directive.

For your things. We all have prized possessions that have little actual market value but would have large emotional implications were you to pass away. A proper estate plan created by an experienced estate planning lawyer will speed up, or may even eliminate, the probate process. This will save your heirs and loved ones time, money, and added stress and grief. If you have specific instructions for the disposition of your prized possessions and assets, detail the reasons in your estate plan to avoid misunderstandings or hard feelings among your heirs.

Thinking about the death or disability of yourself or your spouse can be extremely difficult, especially if you have just added a new member to your family. But proper planning will give you peace of mind by knowing that your children would be taken care of and that your wishes are clear. It will also make the process less difficult on those who you love.  No one wants their family members to endure the painful process of probate administration.  Establishing an estate plan now is a small step toward taking care of those you love. 

Reference: SF Gate (December 22, 2016) “Congrats on Your New Baby! Now It’s Time for an Estate Plan”

An Update on the Probate Administration of Prince's Estate

Here's an update on a story I have written about on several prior occasions (see here, here and here).  As reported by the Star Tribune, the efforts to administer the estate of Prince, who died in April without a will, continue to drag on.  While much of the value of Prince’s estate has yet to be determined, the trust company assisting in the administration of Prince’s estate recently located some unknown assets, including 67 10-ounce gold bars, valued at nearly $840,000. 

What does all this mean?  First, it means that Prince’s heirs will not see their inheritances for quite some time, as the estate administration team continues to gather and value all the assets in Prince's estate.  Second, it means that any stranger who wants to learn exactly what Prince had in his estate can do so through access to the public court records.  Finally, it means that the government will take a very hefty share of Prince’s estate – 40% on everything over $5,450,000.  Could many of these negatives been avoided?  Absolutely!  If Prince had an estate plan in place before he died, he could have avoided probate and ensured that much of his hard-earned money went exactly where he wanted it to go.

For anyone reading, regardless of the value of your assets, an estate plan is a very smart decision.  Probate is a slow, onerous and public process, and dying without an estate plan fails to protect your assets for your loved ones.  As a Florida Bar Board Certified attorney in Wills, Trusts and Estates, I have over thirty years of experience helping families navigate these complex issues.  If you're in South Florida, give me a call and let’s discuss how I can best help you.  Or if you have a family member whose estate does require probate, give me a call so we can discuss how to make the process as easy and painless as possible.  Don’t fall prey to the situation of Prince and his heirs.  Give me a call today!