Estate Planning

Trying to “Woo” Inclusion Into The Will of Heiress Huguette Clark

Published on: June 3, 2013 | by Ettinger Law Firm

The New York Times shared a story late last week on developments in the settling of the estate of copper heiress Huguette Clark. It is a reminder of the sensitive nature of estate planning, particularly for those with wealth, and the lengths that all involved parties may go to influence one’s decisions regarding inheritance.

As many know, Ms. Clark was very reclusive, living the final two decades of her life at the Beth Israel Medical Center, even though for most of that time she did not actually need hospital care. According to new reports (and allegations from family members), almost as soon as she arrived the hospital engaged in a complex campaign to receive donations from the heiress. Apparently the facility had administrative officials sent to her frequently to build trust. After some time the officials, including the hospital’s CEO allegedly, began talking with her about creating a will. All of this was after officials researched the family history in the hopes of making a more personalized connection with Ms. Clark. It goes without saying that this sort of treatment is not provided to all patients at the facility.

All of this is only recently being made public as part of a high-profile legal challenge filed by some of Clark’s relatives angling for a larger share of her $300 million estate. The legal challenges began almost immediately after her death in 2011, and they are still raging. A trial in the matter is scheduled for September.

Common Mistakes when Naming Insurance Beneficiaries

Published on: May 30, 2013 | by Ettinger Law Firm

Most lists of “common estate planning mistakes” include the frequent error of failure to properly update beneficiary designations. Yet, even that mistake is deceiving, because updating is just one thing to consider with these designations. Even if the names are evaluated on a consistent basis, it is still important to ensure that the person named as the beneficiary fits in with other aspects of an overall estate plan.

Fox Business recently published a story listing ten different ways that life insurance beneficiary designation decisions are made in error. The story is worth browsing to get a feel for some common issues.

For example, it is critical to name someone who can actually receive the funds. Parents may name their minor child as the beneficiary, but the insurance company will not dispense funds directly to a child. Without a trust or similar arrangements, then this designation will cause problems. A guardian must be appointed, leading to costly and timely court proceedings being necessary.

Family Claims Women Looking to “Fleece” Estate After Man’s Murder

Published on: May 24, 2013 | by Ettinger Law Firm

Earlier this month we discussed the unique estate issues connected to the murder of a wealthy investor named Raveesh Kumra. Mr. Kumra was murdered during a robbery late last year. It has since been learned that the suspects include several men with connections to alleged prostitutes with whom Kumra apparently was connected. It is a tragic situations all the way around, and the man’s family was understandably blindsided by the situation.

Making matters worse, a significant battle over Kumra’s estate has been waged by various parties since the death. It is an example of the unique court challenges that often result when comprehensive estate planning is not conducted and all possible issues are not analyzed as part of that plan.

Out-of-Wedlock Children

May is “Leave a Legacy” Month

Published on: May 22, 2013 | by Ettinger Law Firm

Virtually every month now has multiple awareness labels attached to them as advocates for various causes seek to raise public support for different causes. For example, this month is known in some international circles as “Leave a Legacy” month. Considering that many New Yorkers continue to delay estate planning and otherwise put off getting long-term affairs in order, this is certainly an awareness campaign that we can get behind.

In fact, some advocates are using a New York example as a reminder. We discussed the case last week of a man who apparently left his $40 million estate to no one, meaning that the funds will be end up in the state coffers. While most do not leave behind estates of that size, failing to create a will or designate how to allocate assets is far too common.

Estate Planning is About Your Legacy

Discriminatory Old University Trust May Be Modified

Published on: May 20, 2013 | by Ettinger Law Firm

Upon visiting an estate planning lawyer for the first time and learning about available options, many are surprised at the flexibility of different legal tools involved in the transfer of property. Far from simply doling out assets to specific friends and family members, one has immense control in deciding how those assets are used, when they are received, and what can trigger the loss of those assets. In this way, unique plans can be crafty which account for any number of family dynamics–multiple marriages, concerns about ex-spouses, children with special needs, relatives with poor money management skills, and more.

Similarly, the same flexibility often exists with gifts to charity. Many New Yorkers decide to share part of their assets with favorite non-profit causes. Those gifts can be one-time transfers or they may involve the creation of trusts for use in specific ways. For example, one of the most common charitable trusts involves setting up a scholarship fund to an alma mater to benefit future students. The trust may be funded with various assets, growing over the years and helping countless students.

Those creating these trusts can set many different terms on the gifts. Perhaps you’d like the funds to be used solely for those interested in pursuing nursing or for those who came from a certain disadvantaged background. In most cases, an attorney can help craft the legal arrangement so that your exact wishes are carried out.

Siblings Inheritance Feud Turns Criminal

Published on: May 14, 2013 | by Ettinger Law Firm

Estate planning attorneys frequently urge residents to be careful about creating long-term plans to avoid family feuding. Careful consideration of inheritances, open communication between families, and prudent use of tools like trusts are usually the best way to ensure that families are not torn apart after a passing.

Some seniors appreciate certain inherent conflicts within the family and work to counter those risks. However, many others assume that such feuding only affects “others” and their family members would never fall into arguments and ruin relationships over property or other end-of-life matters. The reality is that no one knows for sure how things might play out. Reactions to the loss of a relative often spur deep psychological impulses with emotions askew. That can spur problems for even the most stable families.

Estate Planning Murder Plot

Children-Out-of-Wedlock and Inheritance Feuding

Published on: May 9, 2013 | by Ettinger Law Firm

The more complex a family arrangement, the more tailored estate plan is likely needed. For local residents this often takes the form of second or third marriages, with children and different step-relatives. The “default” rules may not be good at accounting for these various relationships and balancing the unique needs of wishes of each family member. Yet, even in the most extreme cases, an estate planning attorney is able to craft the best possible arrangements, provided participants are open and honest about their situation.

But, things can get particularly sticky when there are secret relationships or other family dynamics that are not incorporated into a plan.

Mistress & Children Fight for Inheritance

Developments in Anthony Marshall Case – Brooke Astor Estate Fiasco

Published on: April 29, 2013 | by Ettinger Law Firm

Celebrity estate planning complications and feuds are often used to illustrate basic planning principles or common problems. Perhaps none of those examples are as well-known, especially for New Yorkers, as the sad case of the estate of Brooke Astor. The legendary socialite and philanthropist died several years ago. Since her passing, a wide-range of claims were made regarding the distribution of her assets and criminal activity on the part of those responsible for her care and affairs in the later years of her life.

Astor reportedly suffered from Alzheimer’s at the end of her life–an affliction that similarly affects many New York seniors. Unfortunately, also like many others, it seems that her condition was abused by the very people who were supposed to look-out for her.

Astor’s son, Brooke Marshall, was criminally charged with exploiting his mother to funnel more money to himself. Marshall was ultimately convicted, along with a co-defendant, of illegally giving himself a $2 million “raise” to administer the estate. Claims also suggested that an amendment to Astor’s will in 2004 included a forged signature.

The DuPont Case, Mental Illness, and Wills

Published on: April 26, 2013 | by Ettinger Law Firm

Residents are often warned to complete their estate planning–wills and trusts–before it is “too late.” Most assume that the planning is only “too late” if they die before getting it done. But that is a mistake. In many cases “too late” actually refers to losing the competency to create the legal documents. As a practical matter, it may even mean before one even has the appearance of mental health issues, because even a hint of problems may open the door to legal challenge from others.

Estate planning is about ensuring one’s wishes are carried out and maximizing the preservation of assets without controversy. Limiting that controversy includes completing the planning early and efficiently, minimizing the risk of problems down the road. Thought of in that way, “too late” is far earlier than simply “before you die.”

John duPont Estate

New Case: Inheritance Rights of “Adopted Out” Children in New York

Published on: April 17, 2013 | by Ettinger Law Firm

A case recently came before a New York court that delved into a very unique inheritance issue. The case, Matter of Svenningsen involved the inheritance rights of “rejected” adopted children. “Rejected” is a harsh word, but refers to children who were adopted and whose adopted parents terminate parental rights. It is a rare occurrence, but various health issues or circumstantial factors may make such change in parental rights necessary in some cases.

The circumstances in the Svenningsen case are somewhat complex. Essentially, a New York family adopted a child, Emily, from China in 1996. The family had executed a trust in 1995 the had specifically included adopted children. A second trust was executed in 1996 that specifically named Emily. Sadly, the patriarch of the family died the following year, in 1997.

Eventually, Emily began attending a boarding school for children with special needs. Apparently Emily developed a close bond with those working at the school. As such, several years later, in 2003, Emily’s adopted mother agreed to terminate her parental rights under the assumption that Emily would be adopted by one of the director’s of her boarding school. No mention of Emily’s trust was provided during that second adoption hearing.