Wills

Washington Post Article on Family Struggles in Dividing Up Assets

Published on: April 5, 2013 | by Ettinger Law Firm

A recent Washington Post article discussed the lethal combination of family and finances. The author recounts how even the most close-knit families can be torn apart by disagreements about money matters. The article included one reader to wrote a letter offering an example of how his parent’s will is causing tension and turmoil.

The letter was written by an adult son who was asked by his parents to assist with their estate planning. He was named executor and helped with locating financial documents. The son saw a copy of the will after it was completed, noting that it left assets to a few charities and then split the remaining estate between himself and his one sibling–a sister. This represents a pretty common situation, with families assuming that such a simple estate plan and division will not come with any disagreement.

But then a few years later the parents updated their will. Instead of splitting the assets between their two children, they decided to split it in thirds. Their two teenage grandchildren (from their daughter) will receive a third, and the two adult children will each receive a third. The son noted with shock that his share suddenly went from one half to one third.

Dying Intestate–The Documents that Later Emerge

Published on: February 15, 2013 | by Ettinger Law Firm

If you pass away without a will designating how you’d like your affairs to be handled, you are deemed to have died “intestate.” Some of the most significant legal battles and family feuding occurs in those situation because it is essentially a free-for-all. Generic legal rules apply, but without any indication of how to handle property distribution and other matters, all interested parties may decide to pursue different legal avenues to maximize their own interests. Legal fights can still occur when a will exists (often referred to a “will contests”), but the possibility of one’s wishes being completely upended are far lower when at least some documentation exists.

Interestingly, it is not uncommon for various documents purporting to explain one’s wishes to pop up later on–in the midst of a legal dispute. For obvious reasons, these documents should be examined with much scrutiny, but they still may influence a legal case.

New Document in Lottery Winner’s Estate Feud

LucasFilm’s Sale to Disney & Estate Planning

Published on: November 8, 2012 | by Ettinger Law Firm

Before being overshadowed by the election, the talk of the social media universe in the past week and a half was Disney’s purchase of the George Lucas film business (LucasFilm). The film company owned all the rights to the mega-popular Star Wars francise, and the purchase might mean that another Star Wars film will be in the works in coming years. Perhaps the most eye-popping part of the deal was the sale price. Disney apparently paid a staggering $4.05 billion in cash and stock for LucasFilm.

Since the deal was announced many professionals in the fields of tax and estate plannining have chimed in, noting that the decision to sell now was likely a smart one by Lucas. It will probably pay many divideds in the future for himself and his family. At a general level, by cashing out now Lucas will spare his family the very difficult and complex challenge of handling these matters upon his passing. At 68 years old, hopefully that time is still several decades in the future; however, prudent planning is timely planning. In addition, selling the company allows Lucas to spend more of his times on philanthrophy–something that he has been committed to for decades. He explained recently that he plans to donate most of his wealth to educational efforts around the world.

Beyond that, the timing of the move was likely motivated by smart assessment of the current tax climate. As recently discussed in a Forbes article on the subject, the current capital gains tax rate and brackets are set to be far less favorable in the coming year. No matter who was elected this year, increases in the tax rates to some degree were likely. However, by acting now, Lucas may have saved significant sums on taxes as a result of the immense gain in value of his company since it was founded.

The Importance of Having a Will Even if You are Young, Especially with Children

Published on: November 5, 2012 | by Ettinger Law Firm

Do you really need to conduct estate planning if you are only in your 30s, don’t have many assets, and don’t have a lot of money to spend on legal and planning services? Absolutely.

The specific costs of these planning efforts can always be arranged to meet your resources. And it is critical not to forget that the planning includes components that apply to all parites, regardless of how old they might be or how wealthy. For one thing, an elder law estate plan in New York includes preparations related to long-term health and extreme medical care wishes. Serious accidents affect community members of all ages, and it is critical to have legal documentation in place to explain how you’d like things handled in the event you are seriously incapacitated or disabled.

The need for these documents is even more paramount if children are involved. It goes without saying that parents usually devote their lives to ensuring their children are cared for, protected, and secure in their future. Yet far too many young mothers and fathers forget to take a simple step to prolonged that security indefinitely–use legal documents to identify child care issues in the event of their passing. There is no way to completely prepare for the death of young parents on a child. Yet, dealing with the tragedy is always made a bit easier when the parent or parents had taken some time to identify clear successor guardian wishes in the event of their own death or disability. It is critical that all parents–no matter how old–have very clear plans in place for alternative caregiving.

Court Battle Set to Begin in $300 Million Fight over Huguette Clark Estate

Published on: October 10, 2012 | by Ettinger Law Firm

Mystery permanently surrounded the heiress Huguette Clark–a reclusive woman whose $300 million estate is often referred to as the last collection of wealth drawn from the American “Gilded Age.” Her father was a copper magnante many decades ago and was also a former senator from Montana. He is well known as the founder of the city of Las Vegas. Huguette inherited the fortune upon his (and her mother’s) passing. However, she never sought business or public notoriety like her father. Instead, she was intimately private. In fact, she reportedly spent the last twenty years of her life inside a New York City hospital–even when she was healthy enough to live on her own.

Huguette eventually passed away in May of last year. As often happens in cases of great wealth–particularly when there is much mystery surrounding one’s life–various fights ensued over control of the fortune.

A trial in the case is set to begin soon, according to a recent NBC report on the case.

Confusion, Disagreement Surrounding Painter Thomas Kinkade’s Wishes

Published on: September 21, 2012 | by Ettinger Law Firm

An estimated one in every twenty homes contains a copy of the work of Thomas Kinkade–the painter best known for traditional works of gardens, cottages, streams, and small town centers. Considering the mass marking and popularity of his work, Kinkade was able to acquire a considerable fortunate over the years. Unfortunately, Kinkade died this April at the age of 54. Like many others in his situation, disagreement has reigned in the resolution of his estate.

Kinkade was married, but his wife filed for divorce two years before his death. He has four children with his wife. For the last year and a half before his death he lived in his home with his girlfriend.

Estate Dispute

Exception Proves the Rule: Joe Paterno’s Will Sealed

Published on: June 12, 2012 | by Ettinger Law Firm

Most local residents cherish their privacy. That extends to privacy in sensitive matters like estate planning. When considering estate planning, the first thing that comes to mind for many is the traditional will. Our New York estate planning lawyers frequently explain how there are now many more tools beyond wills to properly tailor these affairs. Trusts are often far-superior ways to pass on assets and protect loved ones down the road. One of the many benefits that a trust can provide is privacy. Wills do not provide that privacy.

Public Records

Even though wills contain private, sometimes sensitive information, at a certain point they become public records, open to view to anyone interested. A will must be filed with the court during the probate process to settle affairs following a death. The court will eventually file the will in its records, where it becomes available to the public. This means that anyone can usually access the documents at a courthouse, often having the ability to make their own copy of the material.

The Complex Issues of Disinheritance

Published on: April 10, 2012 | by Ettinger Law Firm

Delineating what family members, friends, and charities will inherit after one’s death is a large part of New York estate planning. However, intrinsic in the process is also distinguishing who will not receive any part of one’s estate. Disinheritance is therefore just as much a part of the process as anything else. There are many high-profile stories of wealthy families who have children intentionally ignored in the inheritance process.

Perhaps the most well-known example involves “Mommie Dearest,” Joan Crawford, who disinherited her children “for reasons known to them.”

However, the issues involved affect all families, not just the rich. An MSNBC story last month touched on some of the complex motivations woven into disinheritance.

Common Estate Planning Mistakes

Published on: January 17, 2012 | by Ettinger Law Firm

Last week an article in the Mansfield Patch listed “Five Vital Estate Planning Mistakes” made by local community members. The list touched on a few issues that each New York estate planning lawyer in our firm has seen time and again. Like history, these errors tend to repeat themselves. Being aware of the common problems is the best way to ensure you don’t make them yourself.

Of course common mistake number one is putting off estate planning efforts entirely. Passing on is usually not a topic that most enjoy thinking about. Estate plans inherently involve some considerations and preparations in the event that one is no longer alive, and so many simply avoid the idea altogether. This delay ultimately serves no purpose. As the article author remarks tough-in-cheek, “If you don’t die before retirement, chances are pretty good you’ll die sometimes afterwards.” Considering that death is inevitable, there is simply no logical reason to do no planning and risk paying more in taxes, the uncertainty of the probate process, or the potential squabbling of family members.

Second on the list was failure to consider naming guardians for one’s children. While most local residents conducting New York estate planning have adult children, planning is important for younger community members as well, particularly those who have young children. When crafting an elder law estate plan for clients, we always take into account the family dynamics involved. When young children are present it is important to make plans for those children in the event something happens to you, the parent. This is another task that is often put off, because it is not pleasant to think about orphaned youngsters. However, at the end of the day failing to name a guardian only means that the buck will be passed to some other decision maker if anything happens–usually the court. No one is better positioned than a parent to name a potential replacement in case of tragedy, and so it is always prudent for parents to do so.

Some Estate Fights Last For Decades–The MLK Example

Published on: December 19, 2011 | by Ettinger Law Firm

Many local families create their New York estate plan with potential family feuds in minds. History is replete with examples of siblings, parents, children, in-laws, and others being torn apart following disagreement regarding the passing of assets at the death of a loved one. Legal challenges following a death are very common. The legal fights are even more likely to occur when a significant amount of assets are involved, there is surprise about how they will be distributed, or inadequate estate planning has been conducted forcing the matter to be decided in the courtroom. Many parents have made the mistake of assuming that “the kids will figure it out” when it comes time to pass on assets. Unfortunately, that exact mindset has led to entire families descended into dispute. The fighting can last for years or, in some cases, even decades.

For example, last week Forbes touched on the case of the famed civil rights legend Martin Luther King Jr. MLK had not created an estate plan before he died; he did not even have a will. As a result, the distribution of his affairs was left entirely to the courts with the predictable family fighting that ensued–and still continues. Some time ago the King family children engaged in a series of back-and-forth legal battles following the creation of a corporation to manage King’s estate. The lawsuits lasted for years before a settlement was finally reached between the children.

However, the possession of certain assets continues to be fought by the corporation (The Estate of Martin Luther King Jr., Inc.). Recently the estate sued the son of one of the Reverend’s former secretaries (an old family friend) claiming that the secretary possessed historical documents related to MLK. The documents apparently include handwritten letters, speech transcripts, newsletters, and similar materials. According to the secretary, Dr. King gave her the documents over the years, and she always assumed them to be her personal property. He apparently never asked for them back over the decade and a half that the secretary worked for the Reverend.