Arizona Wills & Trusts Blog

Probate Dispute Costs Estate $162M

For more than 26 years, a probate battle has raged over the estate of wealthy Connecticut businessman Francis “Hi Ho” D'Addario. Before D'Addario died in 1986, he prepared a will that distributed his estate, valued as high as $162 million, to his wife and five children. Between lawsuits and probate laws that fail to protect against abuse, 26 years later the D'Addario will is still pending before a probate court. Even worse, when the case was unsealed last fall, it was found to be insolvent. But where did $162 million go? Estate of Denial ponders this question:

On a rainy and foggy March night in 1986, a small plane crashed outside of Chicago, killing F. Francis “Hi Ho” D’Addario, one of the most prolific and colorful industrialists of the 20th century in Connecticut.

Successful and wealthy, D’Addario was a 63-year-old Bridgeport businessman who had a will that distributed his substantial estate – valued at as much as $162 million — among his wife and five children.

It was a complicated matter. D’Addario Industries was diverse, from construction and paving to real estate, television and gambling to the Brakettes, a professional women’s softball team. That was nothing, however, compared to the mess that awaited in Connecticut’s probate courts.

On the Net2012-06-21T16:07:59-07:00June 21st, 2012|Estate Fights, Probate, Rich & Famous|

Estate Tax Win For LGBT Couples

JD Supra reported on a big win for same sex couples as it relates to the estate tax. A recent New York judge held that same sex couples who reside in states that recognize same sex marriage may take advantage of the estate tax marital deduction. According to JD Supra:

Earlier this month, U.S. District Judge Barbara Jones granted a summary judgement in an estate tax case that, according to law firm Duane Morris “created a precedent that is likely to positively affect same-sex married couples for years to come.”

The case involved a same-sex couple (Thea Spyer and Edith Windsor) who were legally married in Canada and recognized in New York because “New York affords legal recognition to civil marriages that are lawful in the jurisdiction where they are performed.”

On the Net2012-06-21T10:16:55-07:00June 21st, 2012|Estate Tax, LGBT Planning|

Joe Paterno’s Will Unsealed

After Joe Paterno's death, his estate was admitted to probate. Typically, documents filed in a court proceeding are public record. If a Will was filed as part of a probate case, that too would normally be public record. However, Joe Paterno's family requested that his Will was sealed, which the court later did. If someone had a Will but not a Trust, I can understand why they might want to do this. Joe Paterno had a sizable estate and perhaps the family didn't want the world to know about his plans for distribution. Recently, Paterno's Will was unsealed. Turns out, Joe had already planned for this eventuality by creating a Trust. Paterno's Will was a typical “pour over” Will, meaning that any asset that he owned that was not already in his Trust was “poured” into his Trust. A pour over Will typically doesn't list what these assets are, but instead functi0ns more as an all encompassing provision by transferring assets that didn't quite make it to the Trust. The meat of Paterno's estate plan and the part everyone wants to see is the Trust. Unlike Wills, Trusts are private and need not become a public record after a person's death.

For more information about trusts, read Richard Keyt's Article Understanding the Significance of Trusts.

Richard Keyt2016-12-13T20:33:28-08:00June 15th, 2012|Estate Planning, Probate, Rich & Famous, Trusts, Wills|

Britney Spears Ready To End Conservatorship

Britney Spears is ready to terminate her conservatorship. She has been under the conservatorship of her father since shortly after her well publicized mental breakdown. Britney appears to have flourished under the conservatorship, going back on tour, getting engaged, and recently becoming a judge on a hit television show. The conservatorship has also allowed team Britney to bar adverse parties from deposing her in a number of various lawsuits. However, as Estate of Denial reports, not everyone agrees that the conservatorship should end:

Britney Spears is ready to ”regain control of her life”.

The ‘X Factor’ judge is reportedly ready for her father Jamie Spears’ conservatorship over her – meaning he is in charge of her personal and professional affairs – to come to an end after just over four years as she is now in a much better place in her life than she was when the ruling was initially put in place.

A source said: ”Britney very much wants the conservatorship to end, she doesn’t understand why it has gone on this long.

”Britney is now a judge on a national hit television show, which will be live when it airs this fall. Britney feels she is ready to regain control of her life now.

”Britney’s dad, Jamie, has conservatorship of her personally and professionally, and this has been going on now for almost four-and-half years.”

However, the ‘Toxic’ hitmaker’s doctors are said to not support her bid to have the conservatorship come to an end.

On the Net2016-12-13T20:33:29-08:00June 15th, 2012|Conservatorship, Rich & Famous|

Michael Jackson Estate Sued For $1B – Lawsuit Is Handwritten

It's no secret that when a wealthy celebrity dies, former lovers, “relatives” and other con men come out of the wood work to try to claim a part of the estate. However, the recent suit the estate of Michael Jackson got hit with might just take the cake. Estate of Denial reports:

Michael Jackson owes a convicted criminal $1 BILLION for exploiting personal details about her life in his music — this according to a bizarre and, dare we say, bogus lawsuit.

Kimberly Griggs filed the case in San Diego — claiming she and Jackson had an intimate relationship beginning in 1979, which she says he chronicled in his albums “Off the Wall,” “Thriller,” “Bad,” “Dangerous,” and his greatest hits album … “Number Ones.”

Griggs — who spent years in prison for burglary and robbery — claims she was pissed that Michael exposed her personal secrets in his tunes, so to make things nice he promised to give her the rights to the songs.

She says she was stunned when MJ died and she was completely left out of his estate.

According to the handwritten lawsuit, Griggs wants $1 billion in damages.

Calls to MJ’s Estate weren’t returned, but we’re guessing their response begins with the letters b and s.

On the Net2016-12-13T20:33:29-08:00June 15th, 2012|Odd Requests, Rich & Famous|

Wealthy Americans Must Act Now To Take Advantage Of Gift Tax Exemption

CNBC: “If you're a wealthy American who's planning to hire an estate or trust attorney later this year, here's a thought: Good luck. You're going to need it.

That's because the transit of Venus of estate planning is passing through, and by the New Year it is likely to be gone.

It's the lifetime gift-tax exemption of $5.12 million, paired with a similar estate-tax exemption. And it means that through the rest of this year, parents can pass along assets valued up to that amount to their heirs – maybe a house, maybe a stock portfolio, maybe part of the family business – without paying a single penny to Uncle Sam.”

On the Net2017-10-07T11:14:47-07:00June 13th, 2012|Estate Planning, Estate Tax, Gifts, Tax Planning|

Estate Planning Is Essential For People With Special Needs

Examiner.com: “A traditional estate planning directive like a simple will or a trust with outright distributions doesn't work well for a person with special needs that is now, or may be in the future, receiving government benefits. In fact, it may cause that individual to be ineligible for benefits, and that could be disastrous.

Planning for a person with special needs requires knowledge of the various benefit programs, their rules and restrictions and the planning directives that work best to preserve benefits. The outright receipt of a gift or inheritance, either intentionally or accidentally, can jeopardize benefits. Well meaning family members and some well meaning professionals can (and unfortunately have) caused a friend or family member with special needs to lose their benefits.”

On the Net2016-12-13T20:33:29-08:00June 13th, 2012|Estate Planning, Special Needs Trusts|

Baby Boomers, Don’t Count On An Inheritance

Wall Street Journal: “Baby boomers: Get ready for a double whammy.

For years now, there's been a lot of talk about boomers getting tremendous windfalls as their parents pass on. Many boomers, in fact, have been lagging behind in their savings, betting on—hoping for—big bequests, especially since many of them suffered big losses in 2008.

But for a growing number of boomers, things aren't going according to plan. The postwar generation is living longer—and many are spending their savings along the way. And, of course, many of them also took a hit in 2008.

The result is that, as a group, boomers likely won't be getting as much of an inheritance as they hoped. Even worse, far from receiving a bequest, a growing number are tapping some of their own savings to help their cash-strapped parents make ends meet.

For families, the result is often a lot of scrambling, dashed dreams, and conflict and angst as parents and children try to come to grips with the lean new reality—and divide up a smaller pie.”

On the Net2012-06-12T08:44:14-07:00June 12th, 2012|Estate Planning, Retirement Planning|

Planning For LGBT Couples

Nolo.com: “Members of the lesbian, gay, bisexual and transgender community often face financial and legal hurdles that many straight couples may have never even considered – such as the ability to participate in medical decisions for a sick spouse, or the concern that a partner or spouse's retirement plan or Social Security benefits would evaporate if their partner dies. These are just two of the things LGBT couples must consider when planning financially, so it's important that members of the LGBT community – and those who support them – understand these and other issues they may face, and how to approach them.

The inability to have a relationship recognized by their state can take a financial toll on LGBT families, so retirement and legacy planning takes on even greater importance for LGBT individuals and couples, and can help create a financial safety net for the future.

According to Lamda Legal, an organization committed to advancing the civil rights of the LGBT community, there are approximately 1,400 legal and financial benefits codified in federal and state laws that are reserved for married couples. These benefits range from joint parenting to bereavement and sick leave benefits to joint insurance policies, and many of them are truly priceless since they cannot be “bought” – even through a legal arrangement. Those that can be bought may be out of financial reach for those who can't afford to hire an attorney.

On the Net2012-06-11T14:11:07-07:00June 11th, 2012|Estate Planning, LGBT Planning|

Basic Estate Planning Important For Everyone, Especially Seniors

Monterey Herald: “It may be surprising, but not many people enjoy talking about death and dying. Fewer still relish the thought of planning for their death and the disposition of their worldly possessions.

We plan vacations. We plan bar mitzvahs. If we find out we need surgery, we make a plan.

Here is some news: No one gets out of here alive and, as we know, we can't take it — our possessions — with us.

If this is not news, then why is it that less than 30 percent of people do any estate planning? Worse yet, unlike vacations, bar mitzvahs and non-emergency surgery, most of us have no idea if death will call this week, next year or in 30 years.

At a minimum, all of us should have a will and a health care directive.”

On the Net2012-06-11T14:06:49-07:00June 11th, 2012|Estate Planning|

Former County Attorney Andrew Thomas Wants To Change Judicial Selection Process

Estate of Denial: “Former Maricopa County Attorney Andrew Thomas, who can no longer practice law, announced his support Thursday for a ballot measure to change Arizona’s judicial selection process.

Thomas, disbarred in April, said his backing of Proposition 115 is just the beginning of his fight to reform government.

At a news conference on the state Senate lawn, Thomas announced the formation of a campaign committee, Citizens for Clean Courts, to support the proposed constitutional amendment. Among other things, the measure would give the governor a larger role in selecting state and county judges.

Joining him were family members of elderly Arizonans whose estates have been depleted by probate and fiduciary fees under Maricopa County Probate Court.

Scottsdale resident Patti Gomes said court-appointed lawyers and fiduciaries drained her 90-year-old mother’s $1.4 million estate. Gomes and others said their families have been victimized by judges, attorneys and administrators in the probate system.

Thomas said he’s not a victim, though he has repeatedly claimed the Arizona judiciary conspired to end his career.

“That is because we got too close to the truth and the judiciary took us out,” Thomas said of himself and two former prosecutors.”

Richard Keyt2012-06-11T08:52:25-07:00June 11th, 2012|Probate|

Rosa Parks Estate Battle Rages On

Estate of Denial: “For nearly a year, Farmington Hills attorney Steven G. Cohen has publicly hammered Wayne County Probate Judge Freddie Burton Jr. over his handling of the estate of civil rights icon Rosa Parks.

But Burton has finally fired back.

In a two-page order Monday, Burton dismissed Cohen’s recently filed lawsuit against Burton and two probate lawyers Burton put in charge of the estate. Cohen had accused of them of conspiring with Burton to loot Parks’ estate through excessive and unnecessary legal fees.

Burton also dismissed Cohen’s request for a default judgment against Burton and the two lawyers — John Chase Jr. and Melvin Jefferson Jr. — and as well as Cohen’s request for a subpoena to depose all three of them for the lawsuit.”

On the Net2012-06-11T08:17:32-07:00June 11th, 2012|Estate Fights, Rich & Famous|

Be Sure To Update Your Beneficiary Designations

JD Supra: “Beneficiary designations are forms that are routinely completed for life insurance policies, retirement accounts and even some bank and investment accounts. The forms say who will receive the asset upon the asset owner’s death. When a beneficiary designation is in place, it generally controls the disposition of the asset it is associated with, regardless of what one’s will or other estate planning document says. As part of a periodic review of your estate plan, it is vitally important to review all of your beneficiary designations. This is particularly important when facing major life events such as divorce, the death of a beneficiary, birth of a child, or the marriage of a beneficiary to a less-than-desirable spouse. While Pennsylvania law does provide some protection in this area, as a practical matter insurance companies and retirement plan administrators are extremely reluctant to pay benefits to anyone other than the individual or individuals named on the beneficiary designation.”

On the Net2012-06-06T11:39:46-07:00June 6th, 2012|Beneficiaries|

Four Things Parents Should Tell Their Children About Their Estate Plan

Your Smart Money Moves: “It’s interesting that as parents age, especially when they get 70, they start thinking about their own mortality. It’s hard to know what to tell your kids. I’m a parent today. As parents they have kids that get older, they start to think about which of their kids they think are responsible and which aren’t especially when it comes to money. Many parents are nervous to tell their kids about how much money they have or what’s happening with the family finances because they either don’t want to bother their kids or they’re worried that their kids may change their lives based on how much they know their future inheritance will be. However, there are a lot of parents that don’t spend enough time talking to their kids about estate planning or overall long-term planning with their kids at all. If you wanted to cue your parents in on what they should tell you, here are four things that I think are a must.”

Richard Keyt2012-06-06T11:36:21-07:00June 6th, 2012|Estate Planning|

Eliza Presley Back In Court

Probate Lawyer Blog: “We've written extensively about the efforts by Eliza Presley to prove that she is half-sister to Elvis Presley and daughter to Vernon Presley, based on DNA and other evidence. Much of this same evidence also supports Eliza's claim that Elvis Presley is actually alive. You can get caught up to speed starting here, if you haven't followed this case before.

It's been more than a year since we last wrote that Eliza's case was dismissed on jurisdictional grounds. This meant that the court in which she filed her lawsuit was not able to hear the case; rather, the case had to go to a different court. Because of this and other legal hurdles, Eliza has never had her “day in court” to present her evidence to a judge or jury.

As we wrote then, Eliza was at the end of her road — emotionally and financially — and was not able to continue with the case. Trying to re-write the history books, which is what Eliza was literally trying to do, is no easy task. This is especially true when there are those who will go to extraordinary means to try to stop her.”

On the Net2016-12-13T20:33:29-08:00June 6th, 2012|Estate Fights, Rich & Famous, Trusts|

Arizona Heirs May Keep Money Found in Walls of Father’s Home

The Arizona Court of Appeals ruled that the heirs of Robert Spann, a Paradise Valley resident, may keep the $500,000 cash found in the walls of his home years after he died. Spann died in 2001. Before selling his home 7 years later, Spann's daughters found cash, bonds, stocks and gold hidden in ammunition cans inside the walls of the home.

The couple who purchased the home tried to claim the cash after a worker found it in the walls during a remodel. The Court of Appeals ruled that since the money and property was only mislaid and not abandoned, it still belonged to Spann's estate.

On the Net2012-06-06T08:44:35-07:00June 6th, 2012|Lawsuits|

Lawyer Appointed To Investigate Witherspoon Case

Estate of Denial: “A Nashville judge has appointed a lawyer to investigate what’s going on with actress Reese Witherspoon’s father who is accused of bigamy and possibly has dementia, according to documents released in a sealed court case.

Earlier this month, Witherspoon’s mother, Betty Witherspoon, said her husband of 42 years married another woman even though he remained wed to her.

A hearing in that case, which was scheduled for Thursday, has been indefinitely postponed. In the meantime, documents released from another Nashville court indicate that John Witherspoon was placed in a conservatorship at the request of the Academy Award-winning actress and her brother.”

On the Net2012-06-06T08:36:46-07:00June 6th, 2012|Conservatorship, Rich & Famous|

More Drama Over James Brown’s Estate

Estate of Denial: “In documents filed in Federal Court on Friday, Aiken attorney and former James Brown trustee Robert Buchanan alleged that Brown’s companion Tommie Rae Hynie joined Brown’s son Terry and grandson Forlando in a conspiracy to destroy James Brown’s estate plan.

The allegations were filed in a counterclaim related to a five-year-old lawsuit, originally brought by Brown’s grandson Forlando against Buchanan and Newberry attorney Adele Pope.

Buchanan and Pope served as co-trustees of the Brown will and trust from November 2007 to May 2009. Only six weeks after they were court appointed, in Jan. of 2008, Forlando filed suit against them, asserting that Buchanan and Pope would not follow James Brown’s noble plan to dedicate his entire music empire to education. In the suit, Forlando asked for the return of original trustees David Cannon, Albert Dallas and Al Bradley.

Bradley died in 2010. Dallas lost an appeal to the S.C. Supreme Court. Cannon entered an Alford plea in Oct. 2011 to indictments that alleged he took $12 million from James Brown between 1999 and 2007, and that he forged a document in 2008 to cover up his takings.

Forlando’s claim that Buchanan and Pope would not defend Brown’s estate plan proved inaccurate. In 2009 Buchanan and Pope “vigorously” defended the estate plan with their opposition to and appeal of a settlement deal that Tommie Rae, Terry and others made with former Attorney General (AG) Henry McMaster. The McMaster deal takes away more than half of Brown’ $100 million music empire and gives it to some of Brown’s disinherited, claimed relatives. McMaster also gave Brown’s son Terry—Forlando’s father—a right to buy the music empire at fair market value.”

On the Net2012-06-04T08:47:44-07:00June 4th, 2012|Estate Fights, Rich & Famous|

Gifting Ideas for Grandparents

Wicked Local Dedham: “Graduation season is as proud a time for grandparents as it is for parents.

Grandparents, especially this year, can take special pride by helping their grandchildren pay for college. And by “gifting” grandchildren money for college, they can get a gift in return. In addition to the satisfaction of helping their children and grandchildren, they can also qualify for a significant tax break.

Helping your grandchildren pay for their college education may be the best gift you can give them. As the price of college continues to increase, more students and parents are borrowing to pay the cost. They’ll do what it takes to pay for college, as a college education is required for practically any well-paying job today.

But the higher salary college grads earn is often offset by the need to pay off student loans. With U.S. student loans totaling more than $1 trillion today, many college graduates begin their careers heavily in debt and find it difficult to pay it off. Those who graduate from college debt-free begin their careers with a huge financial advantage.

So what better gift can grandparents provide to their grandchildren than to help fund their college education?”

On the Net2012-05-30T11:27:31-07:00May 30th, 2012|Estate Planning, Gifts|