Bielski Law Office, Ltd.

Air It Out Before It Goes to Court

Family fighting over estate plans and court challenges are sometimes unavoidable. When people feel slighted or have grievances, they often feel compelled to fight to the end. However, it might help to avoid court challenges to your estate plan if you gave your family a chance to express their feelings before you pass away.

When people think they have been wronged and treated unfairly in an estate plan, they often feel like they have no choice but to challenge the estate plan in court. That is their only opportunity to get the estate plan changed in a way they think is appropriate. It is their only chance to engage in a dialogue with other family members about the estate plan and their grievances.

Recently, The Wills, Trusts & Estates Prof Blog offered another suggestion in "Using Family Meetings to Smooth Over and Explain Estate Transitions."

The idea is a fairly simple one. You can call a family meeting, including everyone who has a potential stake in your estate plan. At the meeting you can tell them what you plan for your estate and why. By doing so you give your family the opportunity to say how they feel about your plans and to engage in dialogue about it.

If your family has the opportunity to discuss it now, it might make it less likely that they will take it to court after you pass away.

Of course, a family meeting about an estate plan is not necessary for all families and it is not a panacea that will result in no challenges to an estate plan. It is, however, one method to perhaps make estate challenges a little less likely.

Reference: Wills, Trusts & Estates Prof Blog (Dec. 7, 2015) "Using Family Meetings To Smooth Over And Explain Estate Transitions."

The Joy of Painting Lives On

Some celebrities continue to have a cultural impact long after they have passed away. Stars such as Marilyn Monroe, James Dean and Michael Jackson have lasting legacies that make money for their estates through licensing of their likenesses and copyrighted works. One such celebrity, if you can call him a celebrity, might surprise you. It is Bob Ross.

You might not instantly recognize Bob Ross by name alone. He was never the most famous person in the world. He probably was never one of the most famous 1,000 people in the world. However, if you see his picture, it is almost certain that you would recognize him.

Ross was the soft-spoken host of PBS's series The Joy of Painting. Yes, that guy.

Ross was the man who for years taught people how to paint fluffy clouds, mighty mountains and happy trees. He passed away two decades ago.

As the New York Times reports in "Bob Ross's Strange Afterlife," Ross has quietly amassed a large following since his death. His brand of licensed painting supplies continue to sell and reruns of his show are viewed online by millions of people.

The article does not say it, but it would be interesting to know what this has meant for Ross' estate and his heirs. Because of his post-death following, his likeness is extremely valuable. It is not clear if his estate plan covered what to do in the case of such an occurrence.

Nevertheless, one thing that is certain is the company bearing his name continues to do well.

What this illustrates is that it is prudent for even minor celebrities to provide contingencies in their estate plans regarding what to do in case they experience a surge in popularity after passing away.

Reference: New York Times (Dec. 2, 2015) "Bob Ross's Strange Afterlife"

Helping Teenagers Who Inherit Wealth

If you give a teenager a large sum of money and tell him or her that it can be spent however the teen wants, you can guarantee that a large portion of it will be wasted if not all of it. It is no different for teenagers who receive extremely large inheritances. Thus, teens who inherit need good help.

Generally speaking teenagers are not known for their wise financial decisions. Even the most spend thrifty of teens will waste money if they are given a fortune. It is not their fault as they do not yet have the life experiences to understand how difficult it is to earn money and replace what has been spent.

They truly cannot entirely grasp the concept that money does not grow on trees. For this reason a teenager who inherits wealth needs assistance from a responsible adult to manage that wealth.

Recently, the Wills, Trusts & Estates Prof Blog offered a few tips for adults who are charged with helping teenagers who inherit wealth in "What To Do When A Teenager Inherits A Fortune."

The tips include:

• Create a spreadsheet – A spreadsheet of all of the inherited assets and the restrictions on them will help the teen and the adult keep track of everything.
• Stay in contact – Use regular contact with the teen to help guide them to make smart decisions. It can also be used to make sure that they have good financial management advisors in place when they become adults.
• Use Teachers and Coaches – Teens who inherit need a sense of purpose in life beyond just spending their wealth if they are going to be successful. Teachers and coaches can make excellent mentors and help guide the teens into meaningful pursuits and careers.

Reference: Wills, Trusts & Estates Prof Blog (Nov. 28, 2015) "What To Do When A Teenager Inherits A Fortune."

Attorney Charged With Theft in Louisiana Estate Case

A feud that began with a bitter child custody battle might have led to one of the attorneys in the case being charged with falsifying a will and theft.

Louisiana attorney Michael Cox represented Michael Davisson in a custody battle against Davisson's ex-wife and her new husband Chris Broussard. The case resulted in Davisson losing and the ex-wife receiving sole custody of Davisson's only child, Jordan Davisson.

According to Cox, Michael Davisson despised Broussard so much that he became estranged from his son and cut the son out of his will to make sure that Broussard got nothing from him. When Davisson was terminally ill, he gave power of attorney to Cox's wife. A will was also created that left Davisson's entire estate to Cox and his wife.

Authorities allege, however, that Cox and his wife were actually using the power of attorney to steal from Davisson while he was in the hospital.

Davisson might have grown wise to this scheme before he passed away. Cox and his wife sold Davisson's two homes for cash. After learning of this, Davisson called Chris Broussard, the man Cox claims Davisson hated, for help as Broussard is also an attorney. KTBS reported on this story in ""I truly do hate him." Sole heir speaks out on arrest of attorney, wife in theft case."

The judge in the case threw out the will and nullified the sale of the homes. One reason for doing so was that Cox notarized all the documents and he is not a notary. Cox and his wife have been criminally charged. If convicted, Cox will undoubtedly face discipline from the state Bar.

Reference: KTBS (Nov. 25, 2015) ""I truly do hate him." Sole heir speaks out on arrest of attorney, wife in theft case."

Gifford Family Will Not Pursue Claims against NFL

The NFL has been under heavy fire in recent years about the long term damage that repeated blows to the head can do to football players. Hall of Famer Frank Gifford is the latest former player to have been confirmed to have suffered these consequences.

Scientists are not absolutely certain how brain injuries work. They know that concussions and repeated blows to the head can cause lasting damage, but they just are not sure exactly how. This is a cause of growing concern in football, particularly in the NFL where rules have been changed in an attempt to lessen head impacts.

One thing that is known is that many former football players suffer later in life from Chronic Traumatic Encephalopathy. The symptoms of the disease are similar to Alzheimer's and it can only be diagnosed by performing an autopsy.

The Hall of Fame player and longtime football announcer Frank Gifford is the latest high-profile player to have been diagnosed with the disease as reported by ABC News in "Former NFL Player Frank Gifford Suffered From CTE, Says Family."

Many former players and their families have sued the NFL claiming that the league did not do enough to protect players from head injuries. The Gifford family, however, has decided not do that. Instead, they will work with the NFL's efforts to prevent future injuries.

For some estates that might not be an option. An executor normally has a legal obligation to pursue potential claims the estate might have. However, if the beneficiaries of the estate do not wish to pursue the claims, the executor is not committing an error by not pursuing the claims.

Reference: ABC News (Nov. 25, 2015) "Former NFL Player Frank Gifford Suffered From CTE, Says Family."

Anti-Aging Drug to be Tested

People are already living much longer than in the past causing stress on many retirement and estate plans. Imagine what would happen if people lived 50% longer lives on average than they do now. It could be a reality soon.

Biologically it is not a necessity for the body to break down as people get older. There are marine creatures that do not get weaker at all as they get older. Each individual cell in our bodies contains all the information necessary to live forever without growing old.

However, our cells are continuously dividing and each division creates the possibility of more errors and damage. Eventually, enough damage has been done that the cells are no longer able to repair it all and we get weaker.

While the amount of time this takes is different for everyone, we plan our retirements and estates based upon when it happens for the average person. However, what would it mean for your retirement and estate plans if you could take a drug that would prolong your life for an additional 40 years?

As the National Post reports in "No more Alzheimer's? World's first anti-aging drug could let you live more than 120 years in good health," the FDA has approved human testing on a drug that might do just that.

The drug is already being used to treat diabetes and scientists have been able to use it to prolong the life of other animals. Anecdotal evidence exists that the drug has worked to prolong the lives of diabetes patients so there is good reason to believe it will work in testing.

If the testing goes well, you will certainly hear about it on the news. If that happens, be sure to consider what it means for your retirement and estate plans and how you will need to adjust them.

Reference: National Post (Nov. 30, 2015) "No more Alzheimer's? World's first anti-aging drug could let you live more than 120 years in good health"

New IRS Policy on Identity Theft

Identity thieves do not content themselves with just taking out credit cards in their victims' names. They also often file fraudulent tax returns for refund checks. A new IRS policy should help victims figure out what happened.

Imagine receiving a letter from the IRS that the tax return you filed could not be processed because one had already been filed under your name and Social Security number. This is an increasing problem for many people.

Identity thieves who are able to get some basic information about a person will rush to file a fraudulent tax return before the victim does in the hopes that the IRS will send a refund to the thief. The victim then has a mess to sort out and needs to figure out what happened. This can be exceedingly difficult for the victim and even more difficult for those filing returns on the behalf of others, such as executors and guardians.

In the past, the IRS has not helped matters too much as the victim was not able to get a copy of the fraudulent tax return. However, as reported by the Wills, Trusts & Estates Prof Blog in "IRS Will Now Offer A Copy Of Fraudulently Filed Tax Returns To Identity Theft Victims," the IRS has changed its policy.

Now victims and their authorized representatives can get a copy of the return, which should help in figuring out what happened. The fraudulent return will be redacted pursuant to federal privacy laws, but not to an extent that would make viewing the return worthless.

Of course, if you are a victim of this tax scam, you should not attempt to handle it on your own, especially if you are an executor or guardian. Seek the services of a professional to make sure that you are doing things correctly.

Reference: Wills, Trusts & Estates Prof Blog (Nov. 30, 2015) "IRS Will Now Offer A Copy Of Fraudulently Filed Tax Returns To Identity Theft Victims"

An Odd and Bitter UK Estate Battle

An estate battle in the United Kingdom pits four large charities against the son of a 95-year-old Alzheimer’s patient whom the charities accuse of fraudulently creating a new will for another woman.

In an interesting estate battle in the United Kingdom, two facts are not disputed. First, in 1982 Dorothy Whelan executed a will that would have left her £1.6 million estate, including her Greater London area home, to four charities. Second, a new will was created in 1999 that revoked the earlier will and instead left the estate, including the home, to Hazel Turner.

When Whelan passed away in 2012, the charities sued Turner claiming she created the second will fraudulently. She is now 95-years-old and incapacitated due to Alzheimer’s, so her son is fighting the battle on her behalf.

The Turner side of the story is that Whelan and Turner were childhood friends and continued that friendship until Whelan passed away. According to this side, the 1982 will reflected the wishes of Whelan’s husband with whom she created mirror wills.

The husband wanted to support the charities, but when he passed away in 1989 Mrs. Whelan changed her mind and wanted to take care of her friend.

The charities, on the other hand, claim that the 1999 will was created under suspicious circumstances. They claim that Whelan may not have been competent at the time. The charities also claim that the alleged witnesses to the 1999 will have no recollection of seeing Whelan and that they thought they were witnessing a will for Mrs. Turner.

The Daily Mail has more on this story in “Charities in court battle with son of frail 95-year-old who 'tricked friend into signing over her £1.6million fortune in will'.”

A court has taken this case under advisement and will issue a ruling in the future. It is undoubtedly a difficult decision as Mrs. Turner is unable to defend herself and tell her side of what happened in 1999.

Reference: Daily Mail (Nov. 10, 2015) “Charities in court battle with son of frail 95-year-old who 'tricked friend into signing over her £1.6million fortune in will'.”

Another Reason to Avoid Probate

Judges are supposed to be impartial and not allow any personal issues to get in the way with the fair administration of justice. One probate judge in Maine illustrates that is not always what actually happens.

York County Probate Judge Robert M.A. Nadeau wanted a substantial raise. In Maine the salaries of elected probate judges are set by the local county commissioners. Judge Nadeau was working two days a week for an annual salary of $48,499.

He requested that he be given a three-day workweek for a salary of $90,000 or a four-day workweek for a salary of $120,000.

The county commission refused his request but did give him a raise to $54,206 and kept his schedule at two days per week.

This did not please the judge.

He almost immediately changed his schedule from working Wednesdays and Thursdays to working Mondays and Fridays so he could receive more paid holidays off. He also blocked out large portions of his time during those workdays for duties that did not include hearing cases.

The result was that probate cases in his court nearly ground to a halt.

At the same time, Judge Nadeau is facing possible disciplinary action by the state’s supreme court for other possible improper behavior. This is not the first time that Judge Nadeau has been charged with acting improperly.

You can read more about this in the Portland Press Herald’s original story “Judge denied big pay raise retaliated by causing backlog, York County officials say.”

This is obviously an extreme case. Most judges do not engage in this type of petty retaliation for not getting their way. However, it is important to note that all judges are human beings who do bring their own personal issues with them, even though they try to suppress those issues when ruling on a case before them.

Usually, you can avoid this problem for your estate by creating an estate plan that avoids probate entirely. Why take the risk that your estate will get the wrong judge when you can easily avoid it?

Consult an estate planning attorney to learn more.

Reference: Portland Press Herald (Nov. 9, 2015) “Judge denied big pay raise retaliated by causing backlog, York County officials say.”

The Importance of Digital Asset Planning and Organization

If you have ever forgotten a password to a digital account, then you know how difficult it can sometimes be to retrieve it. It might require remembering how you answered a security question like “Who was your favorite teacher growing up?” Remembering how you quickly answered that question several years in the past can be difficult. It is even more difficult, if not impossible, for an estate executor.

As more and more of our vocational, financial and personal business is done digitally it becomes increasingly difficult for our heirs to sort out our affairs after we pass away. As the New York Times points out in “Plan Your Digital Legacy, and Update Often,” executors and heirs can no longer simply walk through our homes and see what property we own.

Instead much of our property can now be stored digitally, including pictures, movies, music and even valuable domain names. We might also own digital currency and conduct our business and financial affairs online.

For executors and heirs to have access to these digital items, they often need to know where to look for them and what the passwords are to access them.

The best way around this dilemma is to plan ahead and to organize your digital assets in a way that makes them easy to access after you pass away. You can create a list of all the accounts you own and use a password manager to store the passwords.

The master password can then be stored in a safe or with an attorney (or both) so it can be made available to your estate’s executor. You can also use online storage services to make important files, such as family photos and movies, easy to access after you pass away.

Digital estate planning is still in its infancy, but it is important to talk with your estate planning attorney about making your digital assets part of your larger estate plan.

Reference: New York Times (Nov. 11, 2015) “Plan Your Digital Legacy, and Update Often”