Many say that creating a trust that plans for the care of your animal can be a good idea if permitted by the state law. It's a way to make arrangements to be sure that your favorite dog, cat or bird will be cared for.
]]> Leaving a pet to someone in a will is fine, but it's important to trust the person who will receive the animal. Wills are hard to enforce in this sense. Sure, the pet will be given to a relative, but there's not necessarily anything that will ensure that they take good care of it.Wills are also subject to probate. An interesting case in another state recently involved a woman who died last year. Her 1988 will stipulated that any animals she owned by euthanized after her death. But she had a healthy 11-year-old cat, and her will also gave most of her money to animal causes. To some, it seemed a puzzling choice to put down her cat.
Ultimately, a probate judge spared the cat's life. The situation shows that making a straightforward request in a will isn't always as straightforward as it may seem.
There's another option for animal lovers. Some people leave their animals to no-kill shelters, where they will be cared for. It's a way for pet owners to have peace of mind about the fate of their beloved animals.
Source: Miami Herald, "Pet estate planning: It's easier than ever to include your pets in your estate plan," Becky Yerak, May 17, 2012
]]>However, when relationships with ex-spouses become ambiguous, it can open the door to probate litigation. For example, actor Gary Coleman's ex-wife is claiming in court that she should be awarded his estate. As it stands now, Coleman's manager and ex-girlfriend is the beneficiary and executor of his estate.
]]> Coleman and his ex-wife were married in 2007 after meeting on the set of a film. The marriage lasted less than a year, but the couple didn't exactly go their separate ways. His ex-wife says that they couldn't bear to be without each other after the marriage ended, and they continued living together under one roof. They also apparently shared bank accounts, and she says the late actor listed her as his wife for Social Security benefits in 2010, two years after the divorce.Coleman's beneficiary, representing herself in court, questioned why his ex-wife had her name taken off the deed of the house. A neighbor also testified that while the couple may have continued living together after the divorce, they kept separate bedrooms.
The attorney representing the ex-wife says that the case is not about assets so much as it is about future rights to the actor's name and brand. Coleman died in May 2010, apparently from a head injury after suffering a fall at his home.
Source: Huffington Post, "Gary Coleman estate: Actor's ex-wife Shannon Price and ex-girlfriend Anna Gray battling it out," May 7, 2012
]]>Now, an image of Bogart from that scene has been used in a campaign by outwear retailer Burberry LLC, and it's sparked a flurry of legal activity involving the late actor's estate. The retailer that controls publicity for Bogart's estate is not happy about the use of the image. Burberry fired back by filing a lawsuit seeking a declaratory judgment that using the image is in accordance with its First Amendment rights.
]]> The photo in question is on the company's Facebook "timeline." Burberry apparently licensed the image of Bogart from Corbis of Bogart and wanted to use the picture to show the "long history, significance and influence of Burberry fashion in society," according to the Hollywood Reporter.But Bogart LLC objected to the use of the image, saying it is a violation of the estate's trademark and publicity rights. Bogart LLC isn't the first agency to object to this sort of thing. The estate of Marilyn Monroe, for instance, has made similar complaints regarding publicity rights.
But in this instance Burberry insists that using Bogart's image isn't linked directly to any of its merchandise and that it is merely trying to show a history of its brand through various images.
It's an unusual stance for a complicated matter. It will be interesting to see what the courts have to say about it.
Source: Hollywood Reporter, "Humphrey Bogart 'Casablanca' photo on Facebook prompts lawsuit against Burberry," Eriq Gardner, May 3, 2012
]]>"He died in his sleep, very happy, in the house he built, with the paintings he loved and the woman he loved," she told reporters three days after his death. Only a day after the death, she also talked to reporters about his health, which had apparently been private until that time.
The woman is now involved in the beginnings of a probate dispute with Kinkade's company Windermere Holdings, which is the trustee and executor of the Kinkade Family Trust, along with Kinkade's estranged wife of 30 years. Attorneys for the estate and widow recently filed for a restraining order, claiming that by speaking to the press she had broken a confidentiality agreement she entered into last year -- and that her actions threatened the value of the estate.
]]> According to the confidentiality agreement, Kinkade's companion and personal assistant had private information concerning his painting techniques, including the use of computer technology in painting -- information Windermere considers trade secrets. In addition to speaking with reporters shortly after Kinkade's death, the attorneys claimed, she had allegedly threatened on a previous occasion to reveal Kinkade's business and personal secrets, perhaps in order to gain money and fame at the expense of Kinkade's estranged wife and four daughters.A judge did grant the restraining order, citing "extreme circumstances." The decision was based upon at least some evidence -- as yet untested in an adversarial hearing, that Kinkade's girlfriend intended to make money off of her relationship with him. Nevertheless, the restraining order was never served. A representative of a PR firm retained by the Kinkade Trust said that the decision not to serve the order was made for "personal family reasons." The hearing in which the woman could object to the restraining order is currently off the court calendar, but the case has not been closed.
This story shows how volatile estate and trust administration can be when there is a potential threat to an estate, and how effective estate planning, including arranging for a proactive trustee or executor, can protect one's interests and carry out one's wishes after death.
Source: The Oakland Tribune, "Artist Thomas Kinkade's girlfriend accused of being gold-digger out for 'money and fame,'" Julia Prodis Sulek, April 25, 2012
]]>When the legendary Dick Clark passed away Wednesday at age 82, he left behind his third wife, to whom he was married for 35 years, and his children from previous marriages.
Some would say Clark was also married to his work. After decades as an entertainer, producer, concert promoter, restaurateur and theater owner, and founder of the American Music Awards, Clark left a legacy as an icon in the entertainment industry. He also left what is estimated to be a very large estate, valued somewhere in the hundreds of millions of dollars.
]]> The famous TV and radio personality, perhaps most well-known as the host of "American Bandstand," amassed a fortune through hard work. He was the head of a publicly-traded company, Dick Clark Productions, which employs several thousand people.Clark's boundless energy and innovative ideas allowed him to keep up with the times, even in the digital age. Realizing that the public was interested in watching live television, he produced popular television shows and was a game show host. He also founded the American Bandstand Diner chain and, as a real estate investor, owned several multimillion-dollar properties.
Details are not currently available about the disposition of Clark's estate. With his disciplined, hard-working personality, however, it seems likely that he sought out effective estate planning -- and likely, business succession planning, as well -- to protect the value and continuity of his legacy. By seeking professional help protecting his assets for the future of his family and beneficiaries, he would have been able to minimize any federal estate tax and state probate costs while keeping the details of his estate private and making it easier for his beneficiaries to manage.
Whether you have an average-sized nest egg or a substantial fortune, you and your family can benefit from a careful estate plan. You, too, can leave a legacy -- even if you're not a television icon.
Source: Businessweek, "Clark fortune estimated in 'hundreds of millions'," Ryan Nakashima, April 19, 2012
]]>After he purchased the certificate he did some research tracing through the stock and discovered that it ultimately brought him to ownership of approximately 1.8 million shares in the Coca-Cola Company, or so he hoped. After writing to Coca-Cola demanding his shares be recognized, the soft drink manufacturer filed a lawsuit aiming to disqualify his claim.
]]> The gentleman passed away in 2010, and since then his estate has taken on the responsibility of administering his estate which now holds title to the stock certificate, along with protecting his rights with regards to his potential stake in Coca-Cola.The executors of his estate are willing to take a chance with a legal battle with the soft drink giant and are very hopeful that the law is on their side. If they can convince a court that the stock certificate is valid, then the estate of the man who purchased the certificate will become among the largest non-institutional investors of Coke.
Georgia residents should be aware that this is only one type of issue that can arise when someone dies with open legal issues. In such cases, the estate will have to take on the responsibility of sorting through any unresolved legal issues in order to ensure that the wishes of the deceased are carried out, and to protect the assets left in the estate for its beneficiaries.
Source: Reuters, "Garage sale find: $130 million in Coke stock,?" Tom Hals, April 5, 2012
]]>In a complaint that also named the Bill Graham Archives, Norton LLC, a shareholder of those two companies, a law firm and two attorneys as defendants -- the sons alleged that Clainos had breached his fiduciary duty as an executor by underreporting the value of their father's assets. Those assets included the promoter's personal archives, hundreds of concert posters and various other items of rock and roll memorabilia.
]]> In June 2011, a federal district court judge dismissed the sons' case against Clainos and the other defendants. Each of the defendants subsequently filed motions requesting that the plaintiffs cover the attorneys' fees and costs incurred in the litigation. Last week, a federal district court judge ruled in favor of the defendants' motions and ordered the two brothers to pay more than half a million dollars.While Georgia plaintiffs would not be subject to one of the laws (California's Anti-SLAPP statute) defendants used to obtain attorneys' fees in this breach of fiduciary duty case, plaintiffs asserting any claim governed by federal copyright law (as was the case here) could be ordered to pay the legal costs of a prevailing executor, trustee or other fiduciary.
While such orders tend to be issued only when a plaintiff's claims are found to be frivolous or without merit, it does highlight the importance of understanding all of the possible ramifications of pursuing a lawsuit before charging full speed ahead.
Source: Courthouse News Service, "Bill Graham's Sons Must Pay for Rock Archive Suit," Philip A. Janquart, March 30, 2012
]]>Take Brooke Astor as an example. The philanthropist and socialite died in August 2007 at the age of 105. At the time, her son Anthony Marshall, who is now 88, was accused of looting her estate. He was ultimately convicted of larceny charges, among others. As of this month, Astor's estate is now settled, and her money will benefit many New York institutions.
]]> According to the Wall Street Journal, $20 million will go to the Metropolitan Museum of Art, while $15 million is earmarked for the public library. In addition, $30 has been set aside for improving education, one of Astor's passions. The money will reportedly be distributed by a nonprofit designated by her estate.Several other groups and institutions are set to receive gifts. Among them: New York University's School of Education; Historic Hudson Valley; Central and Prospect parks; Carnegie Hall; Rockefeller University; and the Wildlife Conservation Society.
Astor's son, Marshall, will still get $14.5 million, although that's about half of what he was set to receive. He declined to comment about the amount, but he did tell the Wall Street Journal that he's happy the situation is resolved.
Organizations that were on the receiving end of her gifts are pleased. The library president noted that they are "extremely grateful" for the gifts.
Source: Wall Street Journal, "Astor's estate benefits many," Jennifer Maloney and Melanie Grayce West, March 28, 2012
]]>One woman who lost her son in an accident in 2005 says she wanted to get all she could from his Facebook account to learn even more about his life. But Facebook wouldn't let her, at least initially. Within hours of asking to get into his account, the password was changed.
]]> She was ultimately allowed access to her son's information, but only after filing a lawsuit. Facebook gave her 10 months of access to her son's account before it would be shut down.This is becoming more and more common. People rarely dictate what should happen to their online accounts when they die, leaving loved ones at the mercy of those running the sites. But that could change with new legislation that has been introduced in a couple of states.
Such laws would allow relatives to take control of a deceased person's "digital estate" and would treat Twitter, Facebook and emails as digital assets. Some direction may put the minds of a person's loved ones at ease. Such online accounts can be akin to a shoebox full of mementos and letters.
As it is now, according to the Washington Post, Facebook will provide the estate of the deceased with account data "if prior consent is obtained from or decreed by the deceased or mandated by law."
Source: Washington Post, "Is Facebook part of your estate? States weigh laws to govern social media accounts after death," March 15, 2012
]]>More than $20 trillion is expected to be handed down to heirs in the next 50 years. That's more than ever before. At the same time, the number of Americans age 65 and over is expected to make up a fifth of the population by 2050. And the fastest-growing age group among seniors is age 85 to 94, up 30 percent from the last decade.
]]> Unfortunately, about half of those over age 85 have Alzheimer's disease. Many of them require constant medical care, which means that they could run out of money if they don't plan properly.While some Baby Boomers wait for their inheritance, others see it shrinking as their parents dive into savings for medical and other costs. One professor of family and social history says that relatively few people today have a lot of money to pass on to the next generation, and that's because they've spent it on things like retirement communities and, of course, medical bills.
Estate planning and drafting a will can be crucial to assure one's assets go where they want them to. And it can keep those left behind from fighting about it. According to a USA Today article, one woman who heads a website to help families deal with wills says it's not just about money. "Many times, people fight over memories. It could be the painting on the wall over the table in the hall," she says.
Source: USA Today, "With more blended families, estate planning gets ugly," Haya El Nasser, March 14, 2012
]]>You don't have to be a collector, per se, to find yourself with a large collection of something you love. Items can be collected over a period of many years before a person realizes what they have amassed.
]]> One woman, for instance, collected about 600 buildings and thousands of figurines from the Department 56 holiday scenes. She says at one point they were worth a total of $150,000. Now they are worth more in the neighborhood of $100,000. In any case, it's good that she is aware of their value, because many people who collect similar items are not.Even if people are aware of the value of their collection, leaving behind a huge collection of anything can be a challenge for the family members left behind. According to an interesting New York Times article, one man left his daughter a Victorian home that contained all sorts of collections, including comic books. It took her years to go through everything. She ultimately sold most of the items and collected $30,000 for them.
Leaving behind such items can be tricky. The IRS will expect estate tax to be paid within nine months after a person dies. Some people opt to give their items away to family members, museums or charities as they get older, but it can be hard for people to part with collectibles that mean a lot to them.
It's something to be aware of. People often think about what to do with their money and valuables when they are no longer around. Collectibles or items of emotional value should also be considered.
Source: New York Times, "Making plans for prized collections, heartstrings included," Paul Sullivan, Feb. 24, 2012
]]>The probate litigation began after the man died suddenly in 2004. He left behind a $3 million estate, and his wife asked the court for all of it. The man's daughter said she was okay with it at the time, apparently because it would protect the estate from being overtaxed. However, she later accused the man's widow of fraud. She says the woman induced her into the arrangement by promising to divide the money between them and the daughter's sons.
]]> The daughter began pursuing her portion of the estate in 2007 and sued the man's widow for fraud and breach of contract.On Monday, the Georgia Supreme Court released a unanimous opinion that leaves the man's entire estate with his widow. The court reportedly agreed with a decision by Georgia Court of Appeals in February 2011 that the daughter's claims were barred by the doctrine of "res judicata."
The recent decision relates directly to the breach of contract claim, but according to the Barrow Journal, in its decision the court noted that "the allegation of [her] misconduct which forms the basis of each cause is the same."
The decision puts to rest a case that highlights the disputes that can arise if a person with a large estate does not devise a will.
Source: Barrow Journal, "Eva Elder wins lawsuit," Mike Buffington, Feb. 27, 2012
]]>The actor, best known for his Emmy-winning role as the detective Columbo, died last summer at the age of 83. Earlier this week, his estate made a donation in the amount of $3 million to the University of California, Los Angeles, to fund student scholarships.
]]> UCLA says that a fund, titled the Shera and Peter Falk Lt. Columbo Memorial Scholarship Fund, will be created to provide scholarships to students who are studying music, are military veterans or have disabilities. The first five scholarships will be awarded for students starting school this fall. The scholarships will cover all four years of tuition.Falk's wife says that the donation will be a way to continue the actor's legacy. According to CBS Los Angeles, she says he cared about giving back to the community, and this seemed an appropriate way to do it. She says, "What better legacy than to help students get a great education that will serve them throughout their lives," CBS reports.
Most people don't have that much money to give, but many earmark some funds to help causes important to them.
Source: CBS Los Angeles, "Peter Falk estate gives $3M to UCLA for scholarships," Feb. 21, 2012
]]>The man is being sued by the parents of a 23-year-old man, claiming he is responsible for their son's death. He allegedly left the scene of a car crash while the young man drowned in a nearby canal in February 2010.
]]> In a rather bold move recently, the 48-year-old man adopted his girlfriend, who is only six years younger, so that she could be a beneficiary of a trust set up for his own children. The trust is worth hundreds of millions of dollars.He says he made the move so that he could combat the company that controls the trust. He is facing up to 30 years in prison on DUI manslaughter charges, so theoretically he would not be around to fight the company.
The move stunned and angered many, including those suing him. Earlier this month, they asked a judge to block the sale of a 1,700-acre property that would benefit the trust.
Ironically, the adoption might actually benefit the couple suing the man. Jurors will be allowed to know of the trust, which could prompt them to force the man to pay millions of dollars in punitive damages, according to the Palm Beach Post.
The trial is set to begin in late March, and the press is sure to follow its twists and turns every step of the way.
Source: Palm Beach Post, "Parents of Scott Wilson want to block sale of 1,700-acre Texas parcel in Goodman kids' trust," Jane Musgrave, Feb. 6, 2012
]]>One woman who wrote an estate planning guide says age doesn't matter; such a conversation should occur at some point, whether a person is 50 or 90. People might be surprised by what they discover about their parents' finances.
]]> For example, one woman was surprised that her parents had managed to save about $120,000. But she was also surprised that they kept the money in a checking account, where it was gathering no interest. Her inquiry ultimately led her parents to meet with a financial advisor. They have since created a long-term plan with low-risk investments.Another woman was taken by surprise after a conversation with her parents for the opposite reason. She said they had consistently emptied their account over the years to the point that they would run out of money altogether in about three months' time.
She says her father sounded "relieved" when she offered to help and that she sought the help of professionals to assist them, since she didn't know enough about it.
Broaching the subject of finances or estate planning can be difficult, but the new year might be a good time to start. Making sure parents plan not only their financial future but the future of their estates can avoid disputes that often accompany a parent's death.
Source: LA Times, "Parents' finances: When the family secret is mom's bank balance," Feb. 3, 2012
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