Estate Administration

Benefits for Children Conceived After Father’s Death to Be Decided By Court

Published on: November 28, 2012 | by Ettinger Law Firm

Medical and technological breakthroughs in recent decades have impacted virtually every facet of life–estate planning is no exception. For example, many rules in the field hinge on definitions of legal heirs. In the past, it was pretty clear who those heirs were, typically biological or legally adopted children. When an indiviual dies intestate (without a will), then each state has specific default rules regarding what to do with the individual’s assets. Often the biological or legally adopted children receive part or all of those assets.

But it doesn’t end with inheritance rules. Many state and federal programs also use these definitions to make decisions about who qualifies for certain benefits. This includes the federal Social Security program. In many cases, when a parent dies, a family eligible for Social Security assistance for the minor children that remain following their parent’s passing. In the past there as little confusion over when a child did or did not qualify for those survivor benefits.

No longer. As recent of improvements in medical research have changed reproductive technology, the line between when a child is considered an heir and when they are not is blurred. That is perhaps best evidenced by a new case that is slated to go before one state court.

Is “Prepaid” Life Insurance Becoming Popular?

Published on: October 19, 2012 | by Ettinger Law Firm

Life insurance is an important piece of long-term financial security for local families. It is entirely reasonable for parents and family breadwinners to wish to provide some security to their loved ones in case the unthinkable happens. However, with money tight and uncertainty about financial security remaining, some are unsure about the benefits of life insurance. Those in the life insurance industry have argued recently that their market is shrinking and returns are dropping. To jump-start the industry, some are now turning to a new product to sell to more community members.

A recent story in “The Motley Fool” provides some context for the product that may or may not be a good fit for some local families. This unique insurance option is actually a prepaid life insurance policy. It has been called the “marvel of simplicity.” The product, spearheaded by a unique collaboration between MetLife and retail giant WalMart, is essentially a short-term one year life insurance policy that provides up to $25,000 in coverage. These are not huge sums, but the idea is to open the insurance up to a much larger market. MetLife likely sought out the arrangment so that they could tap into Walmart’s large consumer base while saving costs of middlemen broker fees.

Interstingly, this approach is not the first of its kind. In the past Canadian insurer Manulife offered life insurance products through the U.S.-based big retailer Costco. In addition, in the past Walmart has sold customer various financial products, even including things like mortgages.

Court Rules Woman Must Give Up Kafka Papers She Inherited

Published on: October 18, 2012 | by Ettinger Law Firm

The New York Times published an fascinating story this week on a foreign court ruling that is a testament to the way that estate wishes sometimes have ripples effects for decades and generations into the future. Of course, it is critical to note that the legal rules underlying this case are far different than what a New York court might determine. However, the principles of needing to think about estate plans and personal property distribution for many years into the future still holds.

The Kakfa Papers Inheritance

Franz Kakfka, the well-known and incrediby influential author of the early 20th century, wrote a number of books, short stories, and letters in his shortened life. One of Kakfa’s closest friends (and the executor of his estate) was the journalist Max Brod. Kafka died in 1924. When Mr. Brod fled from Europe in 1939 ( to avoid the Nazi invasion) he took with him a suitcase full of Kakfa papers. Mr. Brod died in 1968, leaving behind his own and Mr. Kafka’s papers as an inheritance to his secretary, Esther Hoffe. Ms. Hoffe lived in Tel Aviv where she kept the incredibly valuable documents. In 1988 Ms. Hoffe sold the manuscript for a Kafka story, “The Trial” for $2 million. However, scholars have not been able to view the rest of the materials since the 1980s.

Deal Reached in Museum vs. Estate Feud

Published on: October 17, 2012 | by Ettinger Law Firm

Unfortunately, there is a tendancy to assume that so long as end-of-life affairs are reasonably spelled out, then everything will go as planned. The reality is that when making estate plans it is usually best to reiterate Murphy’s Law: “Everything that can go wrong, will go wrong.” It is only with that comprehensive planning, taking into account all possible scenarios, that true peace of mind is afforded. This need to be clear about taking into account all contingencies is even more prudent when larger estate are invovled. That is because money often brings out that most aggressive side of others. Even wishes that seem straight-forward might be complicated in the heat of a feud involving money or valuable proeprty.

The Kevorkian Example

Take, for example, a recent story on the estate of controversial doctor Jack Kevorkian. Shortly before the assisted-suicide proponent was to serve his stint in federal prison, he loaned at least 17 paintings to a museum. He ended up serving eight years before being paroled in 2007. He died about three years later at age 83. The executor of Kevorkian’s estate explained that it was his wish for the paintings to be returned to his estate and used to supplement the inheritance for his neice.

Estate Values Grow Beyond the Grave – The Marlon Brando Example

Published on: October 1, 2012 | by Ettinger Law Firm

The importance of selecting a trustee to manage a trust or otherwise handle the affairs of an estate is hard to underestimate. There is a misconception that this task is always a “one-time” affair, with the individual (or individuals) taking care of various paperwork details after a death, and then being done. That is often not the case. Depending on the circumstances of one’s estate planning, the role of a trustee or others involved in these matters can last for years–or even decades.

One situation where that is vividly displayed is with celebrity estates–or those with extensive intellectual property rights. For example, the Hollywood Reporter discussed a legal fight this week involving Madonna and the estate of Marlon Brando. The disagreement stems from royalties that the estate claims it is owed after Madonna used images of Marlon Brando during her concerts. The images are a staple of Madonna’s performance of the song “Vogue” in which the lyrics include Brando’s name.

According to the story, Madonna planned to pay $3,750 to the estate every time that the image was used (once per concert). This fee was the same paid to the estate of a few other celebrities mentioned in the act–James Dean, Greta Garbo, and more.

Substitute Teacher Stands to Inherit $10 Million from Distant Relative

Published on: September 28, 2012 | by Ettinger Law Firm

It is a common TV and fiction fantasy: your life changes in the blink of an eye when you discover that you’ve inherited a fortune from an unknown relative who passed away. While the dream is far-fetched and rarely based on true-life, it is not entirely without precedent. Every once in awhile a story breaks involving an individual who inherits a significant sum of money due to state intestacy rules from someone to which they were related but did not really know.

Latest Case

For example, the Las Vegas Sun reported this week on the latest developments in a case where a substitute teacher found, to her surprise, that she was slated to inherit upwards of $10 million from a distance relative.

Political Bequests in a Will

Published on: September 19, 2012 | by Ettinger Law Firm

When an individual uses only a will (instead of a trust) and does not have professional advice, there is a greater chance that the intended beneficiaries will not receive the property that the testator (the person who creates a will) wanted them to receive. For one thing, the will itself may not be executed properly. At other times, the beneficiary may pass away before the testator’s death without the will being updated. At still other times there may be unique complications with the ability to give in certain ways. Take, for example, political gifts.

Leaving Money to a Political Party in a NYC Will

Many community members have strong attachments to a political party and may want to leave part of their estate to that party. However, this presents some complications, because there are special rules–campaign finance laws–that often apply to what gifts can be given to these parties (or candidates). It is crucial to take those rules into account. Otherwise, the final decision is left up to the court, with extreme uncertainty as to where the money will actually go.

The Bernard Matthews Case: Putting a Mistress in a Will

Published on: September 14, 2012 | by Ettinger Law Firm

Last week AOL Money shared the story of yet another estate planning feud–this time involving Turkish business magnate Bernard Matthews who died two years ago when he was 80 years old. Like many others, Matthews family life did not quite fit the traditional mold. He married his wife decades ago and soon adopted three children. Later on he had a relationship with another woman who bore him a son. Still later he started a long-term relationship with a third woman, Odile Marteyn. He remained in that relationship with Marteyn until his death. Through it all he never divorced his wife, and did not marry Marteyn after his wife’s death.

As it is easy to guess–the convoluted family arrangements spawned bitter feuding following Matthews’ death.

From the information that has been provided so far, it seems clear that Matthews’ wished to have part of his estate go to Marteyn. The estate is worth roughly $64.5 million. Part of that includes a villa in St. Tropez worth about $19 million. Matthews wrote a letter to his children outlining his wishes, noting that Marteyn “has supported me unfailingly for many years and particularly so during my recent illness. Without such support, I might not have been able to continue directing our family company for our mutual benefit.”

Fundamentals of Estate Planning: Naming a Trustee

Published on: September 12, 2012 | by Ettinger Law Firm

A trust is the central legal tool used to provide the flexibility and protection most residents use when planning for their long term financial, inheritance, and health care needs. There are many different types of trusts which provide different benefits to residents; each type comes with its own rules. However, one common theme is that the when creating a trust a trustee must be named. Deciding upon the right trustee in your case is crucial to ensure that things proceed as you intend when you are gone.

The exact role of a trustee varies, depending on the long-term plans of the individual who creates the trust. Yet, in general the trustee will manage the assets and make distributions from it according to predetermined rules and wishes. Some trusts will last for decades, and so the choice can truly can set the course for one’s long-term legacy.

A Wall Street Journal post this week touched on the importance of the trustee selection topic, and provided a list of key factors that should influence the final decision, including:

DOMA Challenges Mount

Published on: September 10, 2012 | by Ettinger Law Firm

The Defense of Marriage Act continues to make headlines, as several states have now challenged the constitutionality of the federal law which defines marriage as exclusively between a man and a woman. New York is among three states (including Vermont and Connecticut) which currently allow same-sex couples to wed and are challenging the law which denies federal recognition to those state marriages. The outcome of the legal challenges will have significant estate planning consequences for local same-sex couples.

The underlying legal issue is an old one–the intersection between federal and state law. The states are arguing that the federal government does not have the power to regulate marriage and family relationships–those issues should be left entirely up to the states. DOMA goes too far, they say, by enacting clear harm on married families in individual states.

Estate taxes are at the root of the issue. The most high-profile DOMA plaintiff, Edie Windsor, was forced to pay $350,000 in estate taxes after the death of her long-time partner (and wife). Because her wife was of the same gender, the IRS did not allow her partner to transfer assets under traditional marital deduction rules. This enacted a very real financial penalty which would not have applied to opposite-sex couples. In this way the state argues that the federal government unconstitutionally “unmarried” the plaintiff.