What To Do After a Loved One Dies

If you’ve been appointed an executor of a loved one’s estate, or a successor trustee, and that person dies, your grief – not to mention your to-do list, including tasks ranging from planning the funeral, coordinating relatives coming in from out of town and (eventually) meeting with a trust administration or probate lawyer – can be quite overwhelming. First and foremost, take care of yourself during this emotional time.

To help you with the “business” end of things, here’s a quick checklist of crucial details that will make the trip to our office to handle the legal affairs easier. I know it can be difficult, but some of these things have a deadline, so make sure that you reach out sooner rather than later:

● Secure the deceased’s personal property (vehicle, home, business, etc.).
● Notify the post office.
● If the deceased wrote an ethical will, share that with the appropriate parties in a venue set aside for the occasion. You may even want to print it and make copies for some individuals.
● Get copies of the death certificate. You’ll need them for some upcoming tasks.
● Notify the Social Security office.
● Take care of any Medicare details that need attention.
● Contact the deceased’s employer to find out about benefits dispensation.
● Stop health insurance and notify relevant insurance companies. Terminate any policies no longer necessary. You may need to wait to actually cancel the policies until after you’ve “formally” taken over the estate, but you can often get the necessary paperwork started before that time.
● Get ready to meet with a qualified probate and trust administration attorney. Depending on the circumstances, a probate may be necessary. Even if a probate is not needed, there is work that needs to be done to administer the trust properly. Here’s what you need to gather:

1. The deceased’s will and trust. If the original of the deceased’s will or trust can’t be located, contact us as soon as possible and bring any copies you do have.

2. A list of the deceased’s bills and debts. It’s often easier to bring the statements or the actual credit cards into the office rather than try to write out a list, but do whatever is easiest for you.

3. A list of the deceased’s financial advisors, insurance agent, tax professional, and other professional advisors.

4. A list of the deceased’s surviving family members, including their contact information when available. Even if they’re not named in the trust, the attorney will need to know about everyone in the family.

● Cancel your loved one’s driver’s license, passport, voter’s registration, and club memberships.
● Close out email and social media accounts, and shut down websites no longer needed. Depending on circumstances, to take these steps, you may need to wait until you’ve “formally” taken over the estate, but you can often learn the procedures and be ready to take action.
● Contact your tax preparer.

You may be thinking about handling all the paperwork yourself. It’s a tempting thought – why not keep things as simple as possible? – but a “DIY” approach to this process might cost you and your family dearly. Read on to understand why.

Consequences of Mishandling an Estate: Examples from Real Life

Example #1: Failing to disclose assets to the IRS. Lacy Doyle, a prominent art consultant in New York City, inherited a large estate when her father passed away in 2003. He allegedly left her $4 million, but she only disclosed fewer than $1 million in assets when she filed the court documents for the estate. Per the New York Daily News: “She opened an ‘undeclared Swiss bank account for the purpose of depositing the secret inheritance from her father’ in 2006 — using a fake foreign foundation name to conceal her identity… [she also] didn’t report her interest in the hidden accounts — nor the income they generated — from 2004 to 2009.” As a result of these alleged shenanigans and Doyle’s failure to report the accounts to the IRS, she was arrested, and she now faces a six-year prison sentence.

Example #2: Misusing power of attorney. Another famous case of an improperly handled estate involved the son of famous New York socialite, Brooke Astor. Her son, Anthony Marshall, was convicted of misusing his power of attorney and other crimes. Per a fascinating Washington Post obituary: “In 2009, Mr. Marshall was convicted of grand larceny and other charges related to the attempted looting of his mother’s assets while she suffered from Alzheimer’s disease. He received a sentence of one to three years in prison but, afflicted by congestive heart failure and Parkinson’s disease, was medically paroled in August 2013 after serving eight weeks.”

Some Key Takeaways

1. Seek professional counsel to avoid even the appearance of impropriety when handling an estate.
2. Bear in mind that errors of omission and accident can be costly – even if your intent was good. An executor who makes distributions from an estate too soon can get into serious trouble, for instance. An executor’s personal assets can wind up in jeopardy if his or her actions cause an estate to become insolvent.
3. Even if you’re well organized and knowledgeable about probate and estate law, it’s surprisingly hard to anticipate what can go wrong. There are many ways to end up in hot water when you’re handling the estate or trust of a loved one.

We’re here to help you steer clear of the obstacles and free you to focus on yourself and your family during this difficult time. Contact us for assistance. We can help you manage estate and trust related concerns as well as point you towards other useful resources

3 Celebrity Probate Disasters and Tragic Lessons

With extreme wealth accumulated, one would assume that celebrities 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 in place, while others have made estate planning mistakes that tied their fortunes and heirs up for years in court. Let’s take a look at three high-profile celebrity probate disasters and discover what lessons we can learn from them.

1. Tom Carvel, The Ice Cream Man

As the man who invented soft-serve ice cream and established the first franchise business in America, Tom Carvel had a net worth of up to $200 million when he died in 1990.

● He did have a will and accompanying trust that provided for his widow, family members and donations for several charities, but he also named seven executors, all of whom had a financial stake in the game

● The executors began a round of infighting that lasted for more than 7 years and cost millions. In the end, Carvel’s widow passed away before the disputes could be settled and before she inherited.

Lesson learned: “Too many cooks spoil the broth.” Your trustee and executor may have to make tough decisions. Consider naming executors and trustees who have no financial interest in your estate to reduce the risk of favoritism. Also, consider having only a single trustee and executor rather than a committee.

2. Jimi Hendrix, The Guitarist

Passing away tragically at age 27, rock guitarist Jimi Hendrix left no will.

● What he did leave behind was a long line of relatives, music industry bigwigs, and business associates who had an interest in what would become of his estate – including intellectual property that would continue to earn.

● An attorney managed the estate for the first two decades after Jimi’s death, after which Jimi’s father Al Hendrix successfully sued for control of the estate.

● But when Al attempted to leave the entire estate to his adopted daughter upon his passing, Jimi’s brother, Leon Hendrix, sued, launching a messy probate battle that left no clear winners.

Lesson learned: When you don’t leave a comprehensive estate plan, the conflict can last for generations. Even if you’re not a celebrity, we can put your wishes in writing so they are carried out after your death rather than opening a door to costly conflict.

3. Prince, The Musical Genius

The court battle waging over Prince’s estate is a probate disaster.

● When the 80’s pop icon died in early 2016, he left no estate plan (reportedly due to some previous legal battles that left him with a distrust of legal professionals in general).

● The lines are already being drawn for what will likely be a costly and lengthy court battle among Prince’s heirs.

● Sadly, there’s even a battle looming about determining, for certain, who his heirs actually are.

Lesson learned: Accurate legal documentation protects your legacy. Don’t let a general distrust or a bad experience propagate through the generations and leave your heirs to fight and potentially lose their inheritance.

These celebrity probate disasters serve as stark reminders that no one’s wealth is exempt from the legal trouble that can occur without proper estate planning. As always, we are here to help you protect your family and legacy. Give us a call today to discuss protecting your assets and your family.

What These 4 Famous Estate Planning Debacles Can Tell You About Proper Planning

Are you failing your family the way these 4 celebrities failed theirs?

 These four celebrity estate planning fiascos offer lessons about how to handle your own planning and legacies.

 1.         Pablo Picasso – The great Dada artist died in 1973 at 91 without a will, a status referred to as “intestate.” Of course, Picasso isn’t the first, or the last, celebrity to die intestate. However, after he died, his six heirs fought for six years over the wealth of assets he left behind. One lesson for us: Make sure you have your estate planning documents in place before you go.

 2.         Heath Ledger – It was a huge surprise, and disappointment, to millions of adoring fans when Heath Ledger died in 2008 at the age of 28. He did leave a will. Unfortunately, he didn’t update the will after the birth of his daughter. Fortunately for his daughter, the family decided to include her in the inheritance, which proves that sometimes people do the right thing. But what if his family had insisted instead on the terms of Heath’s will?  One lesson for us: When there’s a big change in your family situation (or when you have a life changing epiphany about your core values and legacy), update your plans accordingly. Do not assume that just because you’re young and healthy that you will have lots of time to get things in order. Do not assume that, since you have a plan in place, it’ll automatically update to match your current desires and needs.

 3.         Philip Seymour Hoffman – Actor Philip Seymour Hoffman didn’t want his children to grow up as “trust-fund babies.” Fair enough, but he decided to leave his inheritance with his girlfriend, counting on her to care for his children on his behalf. The problem: there was no guarantee that would happen. Since the two weren’t married, Hoffman’s estate was hit with a huge tax. One lesson for us: A trust that includes your guidance about the proper use of the funds is better than hoping for the best with one that leaves your wishes undefined.

 4.         Tom Clancy – Author Tom Clancy left behind a huge fortune, but his estate planning documents weren’t clear about some of the important details. These issues led to drama for family members. One lesson for us: the more complicated your family, your assets, and your business dealings are, the more accurate, precise, and proactive you need to be in working with us on your estate plan.

 Whether you’re just starting to explore the need for estate planning or you’re a seasoned veteran with a well-worn trust binder, we should all remember a few key points:

 ●Have estate planning documents in place, even if you’re young and healthy and think you’ll have plenty of time to get things in order later.

●When there’s a change in your family situation (marriage, birth, or death) or if you’ve changed your mind about something, update your plans accordingly. Do not assume that, since you have a plan in place, it’ll automatically update to match your current desires and needs.

●Provide guidance to your family about how you’d like them to use their inheritance. Do not rely on hope or verbal instructions. The best place for guidance is in your trust or in an intent letter that can help your trustee manage your trust.

●If you’re well-off or have complex assets, you need to work with your trust lawyer in a more proactive way to avoid potential missteps while still achieving your goals.

 When you’re ready to draft your estate documents, give our attorneys a call to set an appointment.

Let’s Go Crazy: Prince’s Estate Entering New Battle Over Who Will Inherit His Millions

Many of you may be following what is happening with pop star Prince’s estate battle. As you likley know Prince died without a will or trust. Thus, the state law of Minnesota will determine who his heirs are. As you can imagine, there were several people coming forward claiming to be a child of Prince’s. The battle continues. This article by Danielle and Andy Mayoras is a great summary of the case and illustrates how a failure to plan ones affairs can cause many problems and be very expensive.

Click on this link to go to the article:

Let’s Go Crazy: Prince Estate Entering New Battle Over Who Will Inherit His Millions