One would assume that celebrities with extreme wealth would take steps to protect their estates. But think again: some of the world’s richest and most famous people enter the pearly gates with no estate plan, while others have made estate planning mistakes that tied up their fortunes and heirs in court for years. Let us look at three high-profile celebrity probate disasters and discover what lessons we can learn from them.
Ideally, when someone passes away, the paperwork and material concerns associated with the deceased’s passing are so seamlessly handled (thanks to excellent preparation) that they fade into the background, allowing the family and other loved ones to grieve and remember the deceased in peace.
When you pass away, your family may need to sign certain documents as part of a probate process in order to claim their inheritance. This can happen if you own property (like a house, car, bank account, investment account, or other asset) in your name only and you have not completed a beneficiary, pay-on-death, or transfer-on-death designation. Although having a will is a good basic form of planning, a will does not avoid probate. Instead, a will simply allows you to inform the probate court of your wishes—your loved ones still have to go through the probate process to make those wishes legal.
In estate planning circles, the word “probate” often carries a negative connotation. Indeed, for many people—especially those with valuable accounts and property—financial planners may recommend trying to keep accounts and property out of probate whenever possible. Further, probate in some jurisdictions can be complicated and costly, and property owned in multiple jurisdictions will trigger ancillary proceedings in those other jurisdictions.
While it is an honor to be named as a trusted decision maker, also known as an executor or personal representative, in a person’s will, it can often be a sobering and daunting responsibility. Being an executor requires a high level of organization, foresight, and attention to detail to meet responsibilities and ensure that all beneficiaries receive the accounts and property to which they are entitled. If you are an executor who is feeling overwhelmed, here are some tips to lighten the load.
One of the more uncomfortable aspects of estate planning is deciding what will happen to your child if both you and the child’s other legal parent were to die unexpectedly. While the odds of this happening are low, the consequences of not naming a legal guardian in your will or a separate document can be significant, since a court would have to choose somebody to care for your child without your input.
You have a minor child who depends on you for their survival, so you need to make sure that they will be cared for if you are ever unable to care for them. By creating an estate plan, you can address your minor child’s care and custody and provide instructions about how your money and property should be used for their care should something happen to you.
According to data provided by the Centers for Disease Control and Prevention (CDC), approximately 2 percent of all infants born in the United States (83,946 in 2019) were conceived using assisted reproductive technology (ART). ART is defined by the CDC as all fertility treatments in which both eggs and embryos are handled. It can involve many procedures, the most well-known being artificial insemination, in vitro fertilization (IVF), and cryopreservation (genetic material frozen for later use). Another related arrangement involves surrogacy, in which a woman other than the one who will take on the role of mother carries and gives birth to a child. A surrogate can utilize the surrogate’s egg and the father’s sperm or carry an embryo containing genetic material from one or both of the intended parents implanted via in-vitro fertilization.
Welcoming a child into the family is a major milestone in every parent’s life, especially if you have utilized assisted reproductive technology (ART). With this blessing comes the need for comprehensive financial and estate plans that are uniquely tailored to your family’s needs. As you continue your journey, we want to provide you with answers to some common questions you may have about planning for your family.
Whether you are reviewing your existing trust or creating a new trust, you should understand the important role that a trustee plays not only in handling trust matters but also in providing for and protecting your loved ones.
Losing your spouse is one of the most difficult things you might face in life. Although it is important to take time to grieve, there are also some crucial steps you need to take as soon as possible to address your spouse’s accounts and property and secure your own future.
A deed is a legal document used to transfer real property ownership rights from one person or entity (the grantor) to another (the grantee). In many cases, this transfer occurs due to the property being sold, with the seller transferring the property to the buyer. Typically, a deed is recorded with the local county recorder of deeds. Recording the deed gives the public notice that the grantee now legally owns the property.
When you form a trust as part of your estate plan, one of the most important decisions you will make is who will oversee the trust’s management when you are no longer able to manage it (also known as your successor trustee). Because a trustee’s work may be time-consuming, complicated, and risk liability, many people who create a trust consider naming a professional fiduciary as their trustee. Keep in mind that if you ask your estate planning attorney to serve as your successor trustee, you should ask for a separate engagement letter from the one you sign engaging them to create your estate plan. When looking to hire a professional to serve as your trustee, the following are several red flags you should keep in mind.
It is important to let your estate planning attorney know if you own real estate that is subject to a mortgage. Most mortgages include due-on-sale clauses stating that, upon the transfer of the mortgaged property, the entire amount of the debt owed on the mortgage is immediately due and payable. Under the Garn–St Germain Depository Institutions Act of 1982[1] (Garn–St Germain Act), lenders are prohibited from enforcing due-on-sale clauses in some circumstances but not in others. If your estate plan involves the transfer of property subject to a mortgage, it is important to keep this in mind.
Many people love to enjoy a good book on vacation. While that bestselling paperback or sunscreen covered favorite, may hold sentimental value, a book and its value is an often overlooked part of a decedent’s estate.
Just as preparations are necessary for a successful cookout, a little planning goes a long way to prevent a poorly designed estate plan (or no estate plan at all!) from leaving you and your loved ones in a pickle.
Getting ready to head out on your next great adventure? Whether heading to the Jersey shore or Tahiti, before you zip up the last suitcase, here are five issues you need to address to protect yourself and your loved ones.
When Will a Trust Terminate? Nothing lasts forever. While trusts can stretch across generations and keep valuable money and property within a family, no trust has unlimited funds or an interminable time horizon. Every trust, at some point, will end. The reasons why a trust might terminate can v...
When it comes to protecting your hard-earned money and property, it is important that you have the right plan, which can include a number of tools for your unique situation. One tool that might benefit you is a limited liability company (LLC) that owns some of your accounts and property.
What Happens When an LLC Member Dies in New Jersey ? In theory, a limited liability company (LLC) can last in perpetuity. However, the owners of an LLC should plan for the day when they are no longer able to run their business. This includes not only situations like retirement, career change and...
Celebrate International Women's Day. Get your Estate Planning in order.
Things to Consider Before Leaving Your Retirement Account to your Minor Child Many people consider naming their children as the beneficiaries of these accounts because they think it is a way of easily transferring their wealth if something happens to them. However, there are some factors that make this type of transfer more complicated than you may think, especially if your child is a minor.
A right of occupancy trust allows you to designate a beneficiary to live at your residence or use another piece of real estate for a designated time period or until the beneficiary dies or moves away.
On Friday, July 8, 2022, the IRS issued a revenue procedure (Rev. Proc. 2022-32), extending the time to elect portability of a deceased spouses unused exclusion amount for as much as five years after the decedent's death. Prior to t...
It's Time to Shed the Taboo of Speaking about Finances and Death Most of my Clients have one thing in common. They believe their finances and legacy planning are private matters. There are times when it is not only beneficial but necessary to discuss these delicate topics with those you trust!