Wills, Trusts & Estates Prof Blog

Price for Cheating -- $5,000,000

According to Nick Allen, Tiger Woods 'offered wife Elin $5m after transgressions', Telegraph, Dec. 3, 2009, professional golfer Tiger Woods has offered his wife, Elin Nordegren, $5 million if she will remain married to him.

This may be a cheap offer seeing as reports indicate that she would receive $20 million if she stuck with Tiger until 2014 under an existing pre-nuptial agreement.  There are also reports that as part of $5 million payoff, a new marital agreement will give her $40 million as long as she stays married to him until 2011.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this development to my attention.

Cave Dwellers to Become Billionaires

Zsolt and Geza Peladi, two homeless brothers living in a cave outside of Budapest, have just learned that they will share, along with their sister who lives in the United States, their German grandmother's fortune worth over $7 billion.

See Henry Samuel, Penniless cavemen inherit $7.2bn, theage.com.au, Dec. 3, 2009:

''We knew our mother came from a wealthy family but she was a difficult person and severed ties with them, and then later abandoned us and we lost touch with her and our father until she eventually died,'' Geza Peladi, 43, told ATV television.

Under German law, direct descendants are automatically entitled to a share of any estate.

''If this all works out, it will certainly make up for the life we have had until now - all we really had was each other - no women would look at us living in a cave,'' he said.

''But with money, maybe we can find a partner and finally have a normal life. I understand it was only while they were carrying out genealogical research that lawyers found we existed.''

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

Estate Tax Repeal in Jeopardy After House Vote

Although 26 Democrats joined with Republicans, the House of Representatives voted today [12/3/09] 225 to 200 to retain the 2009 estate tax exemption ($3.5 million) and rates (top rate of 45%) for deaths in 2010 and thereafter.

The following excerpt is from Ben Pershing, House votes to make current estate tax permanent, Wash. Post, Dec. 3, 2009: 

The Senate faces a Dec. 31 deadline to address the issue, but it's not clear when that chamber will find the time to do so in the midst of its marathon health-care debate. It's also unclear whether the House's approach on the estate tax could garner the 60 votes necessary to move forward in the Senate.

Some Democrats in both chambers would prefer to see higher estate tax rates, arguing that the pre-2001 levels were fair and provided the government with much-needed funds. Making the current rates permanent will take a bite out of the federal treasury, with the government estimated to lose $234 billion in revenue over the next 10 years.

Most Republicans, meanwhile, don't want any estate tax at all, opposing the concept on philosophical grounds.

U.S. House may consider estate tax bill today (December 3, 2009)

The following excerpt is from House Set to Vote on Pomeroy Estate Tax Bill, OMB Watch, Dec. 2, 2009:

The House plans to take up estate tax reform as early as tomorrow [12/3/09] with a vote on Rep. Earl Pomeroy's (D-ND) Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009 (H.R. 4154). The Pomeroy bill would permanently extend current estate tax law at a $7 million exemption for couples at a 45 percent rate.

Special thanks to Karen Meckstroth (attorney and author of the Bay Area Wills, Trusts & Probate Report) for bringing this article to my attention.

New York Senate Defeats Same-Sex Marriage Proposal

On December 2, 2009, by a vote of 24 to 38, the New York Senate defeated a bill which would have permitted same-sex marriage.

See Jeremy W. Peters, New York State Senate Votes Down Gay Marriage Bill, NY Times, Dec. 2, 2009. 

Japanese Man Marries Video Game Girlfriend

Many prior postings have covered the debate surrounding same-sex marriage.  Taking the non-traditional to the next level, a Japanese man reportedly married a video game character from a Nintendo video game.  While the wedding ceremony included a priest and a photo montage from the couple's "courtship," it is not completely clear whether the marriage is actually legally valid.  

I wonder if he later erases his wife's data whether he could be charged with murder.

See Huffington Post, SAL 9000: Man Marries Video Game Girlfriend (VIDEO), Nov. 23, 2009.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this to my attention.

Will California ban divorce?

A grass roots movement is underway in California to ban divorce. 

John Marcotte is collecting signatures on petitions to place a measure on the 2010 California ballot which reads as follows:

SECTION 1. Title. This act shall be known as the “2010 California Protection of Marriage Act.”

SECTION 2. Section 7.6 is added to Article I of the California Constitution, to read:

No party to any marriage shall be restored to the state of an unmarried person during the lifetime of the other party unless the marriage is void or voidable, as set forth in Part 2 of Division 6 of the Family Code.

The logic behind this family values proposal is that if it is impermissible for same-sex couples to marry because of the sancity of the marriage relationship, it makes sense also to ban divorce for the same reason.

If the measure passes, California would become the first state to ban divorce and would join nations such as Malta and the Philippines.

See Judy Lin, Movement under way in California to ban divorce, AP, November 30, 2009.

Follow this link to view two public service announcements supporting the proposed ban.

Tips for Avoiding Estate Litigation

US News reports that poor economic conditions have led to more estate litigation. While wealth transfers have increased over the past 20 years, currently reduced asset values make for a smaller pie and returns that are smaller than excepted.  Longevity and increased family complexity (2nd and 3rd marriages, for example) only add to disputes. 

US News suggests the following key tips for avoiding estate litigation.

1. Select a good, solid attorney who hasn't done any work for any of your beneficiaries.
2. Select an executor who can get along with your family, perhaps even a professional fiduciary if no one else could successfully fill this role.
3. Discuss your intentions with family before the will is drafted, taking away the surprise after death and making loved ones aware of personal wishes and desires.
4. Take state law into account, creating trusts to bypass probate if probate is especially burdensome under applicable state law.
5. Update the will or trust often so that challenges become more difficult.
6. Title assets appropriately so that the assets pass through or outside probate as intended.
7. Consider a no-contest clause coupled with testamentary gifts adequate to discourage disputes.  
8. Allow the estate some leeway with distribution of assets so that beneficiaries can agree to a distribution that suits them best.  

See Phillip Moeller, 8 Tips to Avoid Nasty Estate Surprises, U.S. News, Nov. 27, 2009. 

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

Paralyzed Man Reportedly Trapped Inside Body for 23 Years

A Belgium man reportedly spent 23 years trapped inside his paralyzed body until doctors discovered that he was conscious after a brain scan three years ago.  Now, using his right hand and a special touchscreen, the man has communicated that he could always hear what was going on around him but was unable to communicate this fact. 

See Kate Connolly, Trapped in his own body for 23 years - the coma victim who screamed unheard, Guardian, Nov. 23, 2009. 

The Lasting Impact of Suicide

I've posted a number of blogs covering assisted suicide but few regarding the potential impacts of a suicide.   The following, taken from Colleen Mastony, Witnesses to suicide: A man takes his life, and those who see it are forever haunted, Chicago Tribune, Nov. 15, 2009, recounts the aftermath of the suicide of a 23-year old man in Chicago:

[T]he many strangers who witnessed his death still wonder who he was and why he chose to die. For weeks they posted messages to an online news comment board, sharing their questions, their sympathy and shock. Their lives, they say, will never be the same.

One man makes a point of telling his children that he loves them before he hangs up the phone. A doctor spends extra time with a patient who seems sad. An 11-year-old boy goes to bed praying for "the man under the blanket."

Estate of Just For Feet CEO in Accounting Dispute

The probate court of Alabama is currently hearing an accounting dispute over the Estate of Harold Ruttenberg, former CEO of Just for Feet.  The personal representatives of the estate seek approval of their actions and over $15 million dollars in their petition for final settlement.  Two Ruttenberg estate beneficiaries contest the claimed expenses, asserting that money was misappropriated in violation of Alabama Code and that a conflict of interest among lawyers essentially caused the estate to overpay on a $15 million settlement agreement.

In re Estate of Harold Ruttenberg, Probate Court of Jefferson Country, Alabama.

Declared Dead and Refrigerated While Still Alive

A North Carolina man who was accidentally declared dead, placed in a body bag, and refrigerated in Franklin County, N.C., has sued the medical examiner who allegedly ignored the suggestions of many paramedics that the man was still alive. 

A county judge ruled that the medical examiner is not protected by sovereign immunity, and the court of appeals heard arguments on the issue last week. 

See Martha Neil, Family of Living Man Declared Dead Seeks to Sue Medical Examiner, ABA Journal, Nov. 19, 2009. 

Special thanks to Ken Coughlin (ElderLawAnswers) for bringing this case to my attention.

Winnie-the-Pooh Goes to Court

The estate of Stephen Slesinger is suing Disney, claiming that the company owes the estate hundreds of millions of dollars in concealed Winnie-the-Pooh royalties.  Slesinger obtained the licensing rights to Winnie-the-Pooh in 1930, and the estate has unsuccessfully sued Disney twice before.  

See Rachel Lee Harris, Winnie-the-Pooh Returns to Court, NY Times, Nov. 15, 2009. 

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

Lou Dobbs Enlarges Estate by Not Working

Newscaster Lou Dobbs has reportedly accepted $8 million to terminate his contract with CNN early as a result of CNN's dissatisfaction with Dobbs' lack of reporting neutrality. From an estate planning perspective, Dobbs is increasing the size of his estate by agreeing not to work, an investment option many would likely seize.

See Michael Shain, Source: CNN wanted Lou out, N.Y. Post, Nov. 16, 2009.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.

Update on Estate of Former Fiat Chairman

I previously reported the legal battles surrounding the estate of Gianni Agnelli, former chairman of Fiat.  Agnelli's daughter, a primary beneficiary of Agnelli's estate, claims that the estate contains undeclared assets held in Swiss accounts, worth as much as $1 billion.  Agnelli's daughter sued three advisors for an estate accounting. 

Lawyers presented closing arguments in court last week and a final decision is not expected until next year.  While the trial has remained closed to the public, the proceedings have exposed the family to unprecedented levels of publicity, what some call a demonstration that the dynasty that was once the "very definition of elegance and style" is finished.  Stacy Meichtry, Lawsuit Draws Rift Among Agnellis, Nov. 19, 2009. 

Special thanks to Patrick S. Sylvester (Attorney & Counselor at Law, Sylvester Law Firm, PC) for bringing this article to my attention.

Nicolas Cage's Financial Woes Cost Him Two Homes, So Far

A foreclosure auction last week cost Nicolas Cage two of his homes in New Orleans.  Cage, who reportedly owes $6 million in back taxes, has sued his former business manager as a result of his poor financial situation. Properties in California and Vegas will be auctioned this month as well.

Perhaps a good sign, Cage has five projects slated for 2010.  

See Hibah Yousuf, Nicolas Cage loses 2 homes in foreclosure auction, Yahoo News, Nov. 13, 2009.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.

Over 14,000 Seek Amnesty for Offshore Accounts

Over 14,000 Americans have taken advantage of the IRS amnesty program by disclosing secret offshore accounts.  It is estimated that 12,000 of those disclosures came after the Swiss government agreed to reveal information about UBS accounts, which I reported here.  

According to Ryan J. Donmoyer and David Voreacos, IRS Gets Secret Account Data From 14,700 Americans, Bloomberg, Nov. 17, 2009, the voluntarily disclosed accounts will translate into billions in income for the U.S. government: 

The partial amnesty program, announced in March, let taxpayers repatriate offshore assets and avoid jail by paying back taxes, interest and reduced penalties. The tax agency will take 20 percent of a disclosed account’s assets based on its peak value in the previous six years. In cases of inactive accounts, the agency will confiscate as little as 5 percent.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.

Beneficiary of Madoff Scheme Dies; Leaves Millions to Family

Jeffry Picower was listed as one of Forbes 400 wealthiest Americans and was also involved with Bernard Madoff. 

• Picower died of a heart attack last month. 
• Picower's will left $200 million to his wife, $25 million to his daughter, and $10 million to his assistant. 
• Called the biggest beneficiary of Madoff's ponzi scheme, he was sued for $7.2 billion by the bankruptcy trustee handling the aftermath of Madoff's scandal.
• Prior to his death, Picower was trying to reach a settlement with the Madoff bankruptcy trustee, efforts that will likely continue with the executor of Picower's estate.

For more information, see Reuters, Madoff friend Picower leaves $200 million to wife, Nov. 10, 2009. 

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

New Evidence That Stonehenge Was Part of a Funeral Complex

Discovery of a second, smaller stone circle near Stonehenge might confirm the theory that Stonehenge was once used for cremations as part of a funeral complex surrounding the near-by river Avon. The newly discovered stone circle has been termed Bluehenge because it is made out of blue stones.  Some researchers theorize that funeral processionals moved from Bluehenge to Stonehenge and that the two stone circles are linked by the Avon to Durrington Wells, a monument where signs of feasting and other activity have been found.

See Gregory Katz, Scientist Hail Finding Mini Stonhenge, AP, Oct. 2009.

Happy Friday the Thirteenth

  Hope your day is most lucky!!