Wills, Trusts & Estates Prof Blog

Columbia University Asks Court to Exclude White-Only Provision from Trust

Columbia University is seeking to modify the terms of a highly restrictive trust that violates current anti-discrimination laws.

Under the terms of the 93-year-old Lydia C. Roberts Graduate Fellowship, money should be given only to “a person of the Caucasian race” who was born in Iowa and attended an Iowa college or university.  This fellowship also excludes the student from studying in a number of fields, including law and medicine, and requires the student to move back to Iowa for at least two years following graduation.

Columbia is requesting that the State Supreme Court in Manhattan exclude the whites-only provision and modify the Iowa-only rule in the $840,000 trust.

See Columbia U. Seeks to Alter Whites-Only Bequest, Houston Chronicle, May 15, 2013.

New Questions Arise After Hong Kong Allows Transsexual Marriage

Following a court ruling allowing for transsexuals to marry in Hong Kong’s New Territories, new questions have arisen concerning inheritance rights, matrimonial rights, and sex offenses.

By covering male-to-female transsexuals under the definition of “woman,” does a male-to female transsexual lose inheritance rights under Hong Kong’s male-line inheritance?  Does a female-to-male transsexual gain these rights?

Another issue is whether a man with children who chooses to become a female loses her duty to be a “father.”  Also, only women can be raped under Hong Kong law, so can transsexuals be considered victims?

Although the legislature has not yet considered these issues, scholars believe the right to marry will coincide with associated rights of inheritance, divorce, and adoption.

See Patsy Moy and Stuart Lau, Transsexual Marriage Ruling Opens Door to Questions of Inheritance, South China Morning Post, May 14, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

Check Out Michael Jackson's Estate On 60 Minutes

Today on CBS at 7 p.m. EST, 60 Minutes is showing viewers a special on Michael Jackson’s Estate. Estate’s archivist and Michael Jackson’s friend will give the tour. Viewers will get to see Jackson’s prized possessions like Jackson’s wooden rocking horse given to him by Elizabeth Taylor. Additionally, viewers will dive in to a warehouse filled with Michael Jackson’s belongings. The warehouse includes many of Jackson’s stage costumes and GRAMMY awards. While there is no record of how much the contents in the warehouse is worth, Michael Jackson’s estate has made more money than any other living artist through Jackson’s Immortal tour and music sales. Jackson’s children will inherit the estate when they reach 18 years of age. 

See Susan Ragan, Take A Tour Of Michael Jackson's Estate This Sunday on '60 Minutes', Radio.com, May 17, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

Happy Armed Forces Day!!

A special thanks to all my readers who serve or who have served in the military -- your sacrifices and hard work do not go unnoticed and are greatly appreciated.

To read the complete text of the official Armed Forces Day Proclamation, see American Forces Press Service, President Issues Armed Forces Day Proclamation, Elites.tv, May 15, 2009.

Renown Con Man Found Dead

Con man Billie Sol Estes, 88, was found dead in his Dallas home. He died of natural causes. Estes was notorious because he committed fraud on many farmers in Texas. As a result, the farmers suffered serious financial harm. Estes secured loans with fictional collateral and swindled all of the money. Consequently, he was convicted of fraud and served time in prison. However, once released Estes was picked up and convicted for fraud a second time. Although he was accused of other instances of tax fraud the indictment was eventually dismissed.

See William Barrett, Swindler Billie Sol Estes, Dead At 88, Is Remembered In Verse, Forbes, May 14, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

Mother of Heirs to the Doris Duke Fortune Ordered to Explain her Big Spending

Daisha Inman has allegedly blown over $1 million of her children’s $60 million inheritance since 2010. 

Daisha Inman was married to Walker Inman Jr., the nephew of tobacco heiress Doris Duke.  Following his death, the Duke fortune is now held in trust for their twin children. 

Inman “has been ordered to appear in court next month to answer charges that she’s treated their trust funds as a personal piggy bank.”  Inman asserts she has never touched their trust funds and points the finger towards the Citibank and J.P. Morgan trustees who administer her children’s accounts.

See Julia Marsh, Mom of Twin Duke Fortune Heirs Ordered to Court after Allegedly Blowing $1M of their Inheritance, New York Post, May 8, 2013.

Coming Back From The Dead

In Zimbabwe during his own funeral Dama Zanthe sat up in his coffin. Funeral attendees noticed body movement and were shocked. Luckily, Zanthe woke up before his body was transferred to the funeral parlor that afternoon. Shortly after the incident, he was taken to the hospital and stayed for two days before his release. There have been a few reported incidents in Zimbabwe of the revitalization of the dead. 

See 'Dead' Man Woke Up During Own Funeral In Zimbabwe, Witness Says, Huffington Post, May 14, 2013.

Special thanks to Steve Gonzalez (Attorney at Law, Crikiel & Associates, P.C.) for bringing this article to my attention.

Marine Painting Worth Thousands

A man who inherited a painting from his deceased father took it to an Antiques Roadshow. The paper work to the painting found in his father’s desk indicated Francis L. Silva painted the artwork, but the man was unsure of the paintings worth. He was pleasantly surprised when the marine painting was valued at $250,000. Silva was a self-taught painter known for his marine paintings. 

See Antiques Roadshow: Man Inherits Painting worth a Boatload, OnAol.com, May 14, 2013. 

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

Man Dies in Court Fighting Wrongful Foreclosure, Wells Fargo Now Being Sued for Wrongful Death

On December 19, 2012, Larry Delassus, 62, died of heart disease during a court hearing at which he was fighting Wells Fargo’s wrongful foreclosure of his Hermosa Beach condominium.  Deborah Popovich, the estate administrator, is now suing the bank for wrongful death among other charges for forcing the ailing Delassus to needlessly appear in court.

The complaint states that Delassus always made timely mortgage and property tax payments, but Wells Fargo falsely claimed Delassus owed over $13,000 in back taxes, a bank error that really should have been attributed to his neighbor.  Wells Fargo then doubled Delassus’s mortgage payments and then foreclosed on his condo when he was unable to afford the higher payments.  Wells Fargo could have caught this mistake by “verifying his property’s tax identification number with the county” and still foreclosed “even after the county treasurer had confirmed that his property taxes were current and paid.”

Popovich claims that Delassus “succumbed to the pressure of fighting Wells Fargo and the heartbreak of losing his home” and that “Wells Fargo and its agents should be held accountable for their negligent wrongful and malicious actions.”

See Matt Reynolds, Elderly Man Allegedly Dies in Court Fighting Wells Fargo ‘Wrongful’ Foreclosure, AlterNet, May 14, 2013.

Minnesota authorizes same-sex marriage

Starting August 1, 2013, same-sex couples may legally marry in Minnesota.

Governor Mark Dayton signed the enabling legislation on Tuesday, May 14, 2013 after the bill easily passed the Minnesota House by a vote of 75-59.

Minnesota is the 12th state to authorize same-sex marriage.

See David Bailey, Minnesota Senate passes same-sex marriage bill, NBCNews.com, May 13, 2013 and AP, Minnesota governor signs same-sex marriage bill, CBSNews.com, May 14, 2013.

Ariel Castro Won’t Escape Child Support

The Cleveland kidnapper is legally required to pay child support after a paternity test revealed he fathered the daughter of one of his captives.

Even if Castro had set up a domestic asset protection trust (DAPT), under Ohio’s new “family-friendly” statute, child support is an exception creditor allowed to access the trust.  However, if Castro had set up a DAPT in a different jurisdiction, such as Nevada or Utah, child support is not afforded special status and Castro may have been off the hook. 

Ohio clearly won’t be letting Castro profit from his crimes in any way.  His estate will likely find its way to the victims, whether it be by an assignment of assets arising out of a 2004 written confession, garnishment of property arising out a civil suit, or perhaps criminal restitution.  The victim that now has to raise his child may receive preferential treatment when it comes to the division of his assets.

See Scott Martin, Ohio’s New Asset Protection Law Won’t Shield Cleveland Kidnapper, The Trust Advisor, May 12, 2013.

Bankruptcy Appellate Panel Takes A Stand Against Fraud

The Bankruptcy Appellate Panel of the U.S. Tenth Circuit Court of Appeals made it clear that committing fraud to avoid making payments to creditors will not be tolerated. Debtor owned a failing printing company and a substantial portion of a real estate company. Debtor also owed millions in loans and was trying to avoid paying his creditor on the personal guarantee by transferring his assets to his wife who then moved the assets to an offshore trust. Following the transfer the debtor filed for voluntary bankruptcy relief.

In re Kendall, the court held that the transaction had seven of the eleven fraud indicators. The court mentions that looking at the totality of the circumstances the transaction was fraudulent and affirmed the lower court ruling. In addition to the fraud indicators, the court mentions the significance of the location of the offshore trust. The trust is located in a place known for asset protection.   

See Jay Adkisson, Tenth Circuit Affirms Fraudulent Transfer Judgment Against Debtor's Wife and Her Cook Islands Trust , Forbes, May 12, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

Connecticut Rakes in Inheritance Taxes

Connecticut state officials estimated that they would collect about $150 million in inheritance taxes in 2012, but due to the death of an unprecedented amount of wealthy people, Connecticut will collect a staggering $428 million. 

This unexpected record amount is also due to an increase in gift taxes, a result of wealthy individuals making huge transfers in gifts before the higher federal gift tax rate increased from 35 to 40 percent on January 1, 2013. 

The wealthiest Connecticut residents to die in 2012 include Goldman Sachs investment partner Richard M. Ruzika, Standard Oil heir Lucie Cunningham Warren, and Wall Street investor Barton Biggs.

See Christopher Keating, Inheritance Windfall: Record-Breaking Year for Estate Taxes Helps Fuel Budget Surplus, Hartford Courant, May 11, 2013.

Mother of Duke Heirs Ordered Back To Court

As I have previously discussed, the mother of Duke heirs was suspected of dating a convicted child molester that was attempting to take some of her children's trust funds. Now, a court has ordered Daisha Inman, "to appear in court next month to answer charges that she's treated their trust funds as a personal piggy bank." Court records indicate that Ms. Inman has already spent about $1 Million worth of the trust, which does not include direct payments made to cover the children's expenses. This would include items such as their school tuition. Recently, Ms. Inman has also requested big sums of money to purchase a ranch and take a trip to Las Vegas.

Judge Nora Anderson has ordered to Ms. Inman to appear to defend why she should be required to provide receipts for the her spending to the corporate trustees. When the trustees asked Ms. Inman to "account for ATM withdrawals, Inman has been hostile and invoked the right of privacy." In the past three years, she has moved her children to three different states and is currently living within a hotel in Utah. Her room and board is set to run about $120,000 a month. The court has ordered her to appear on June 28, 2013.

See Julia Marsh, Mom of Twin Duke Fortune Heirs Ordered To Court After Allegedly Blowing $1M of Their Inheritance, New York Post, May 8, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

Mother Sues Son For Taking Her House

An elderly woman in Galveston, Texas named Lydia Gracia sued one of her sons, Joseph, for taking her house. Joseph claims that he has a right to the house because it is compensation for the fact that he lost "two vehicles to his siblings." Lydia only discovered the change after when she went to pay her property taxes. She claims that he she did not "knowingly nor intentionally conveyed her home to [Joseph]." Even though she has made several requests, Joseph has not returned the home to her. Finally, Lydia contacted and complained to an adult protection agency and police. Once that occurred, Joseph returned the house to her. Lydia is asking a court to grant her $250,000 in punitive damages and a ruling that her son obtained the deed to her house through fraud.

See Cameron Langford, Just in Time for Mother's Day, Courthouse New Service, May 9, 2013.

Partial Summary Judgment In Sperm Donor Case

As I have previously discussed, Angela Brauer recently petitioned a Kansas court to give her the right to intervene in the Craigslist case, involving herself, her partner Jennifer Schreiner, and the donor William Marotta. Now, it appears that the court will likely resolve this case via parital summary judgment this upcoming Friday, May 17, 2013.

Recently, the Judge Mary Mattivi appointed an attorney, Jennifer Berger, to represent the birth mother, Jennifer Schreiner. Judge Mattivi has asked all parties "to tell her whether Marotta is the 'sperm donor, what his status is,' and that will focus the case on where it needs to go." The judge also froze Brauer's motion to intervene, which led Brauer's attorney to file a motion to reconsider. Brauer's motion to re-consider contained "a copy of a two-page sperm donor contract signed by Marotta, Schreiner and Brauer in which Marotta gives up his paternal rights, and the women release him from making child support payments." The attorneys for the state will likely file a motion for partial summary judgment to dispose of the case.

See Steve Fry, Sperm Donor Case To Be Decided By Summary Judgment, The Topeka Capital-Journal, Apr. 9, 2013.

Scandal at the National Enquirer Continues...

As I have previously discussed, the widow of the founder of the National Enquirer Generoso Pope, filed a protection order against her son Paul Pope. In the document, she claimed that her son "'maliciously and repeatedly harassed (her) with cruel behavior (that) is causing (her) to suffer substantial emotional distress and to genuinely fear for her safety."" The complaint alleged that Paul lived an extravagant lifestyle that was outside his means. While he received $20 Million from the sale of his father's tabloid, he has already spent that money. He has repeatedly asked his mother, Lois, for more of her $200 Million share from the sale. Well, on Mother's Day of all days, Paul Pope was arrested for allegedly stalking his mom. This is a story that even the National Enquirer could make up.

See Tina Moore, National Enquirer Heirs Still Squabbling as Paul Pope Is Arrested, New York Daily News, May 12, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

Brother Sentenced To Life In Attempted Capital Murder Case

Clair Wolf was sentenced to life in prison and given a $10,000 fine after he was found guilty of solicitation of capital murder. Specifically, Wolf was convicted of attempting "to hire a hit man to kill [Vennie Wolf] and her sister...in the middle of a bitter inheritance fight." The dispute between the Wolf siblings began in 2006. Since that year, Vennie and her sister have fought with Clair over their parent's $3 million estate. Currently, the inheritance is tied up in a myriad of criminal cases and civil lawsuits. Most of the sibling's inheritance is probably gone thanks to the hundreds of thousands of dollars in attorney's fees.

In order to maximize his own inheritance, Wolf tried to kill his family members in a particular order. His plan was only discovered after a Harris County inmate, the hit man Wolf tried to hire, revealed Wolf's plan to the authorities. At his current age of 66, it is likely that Wolf will die in prison because he will only become eligible for parole after 30 years have passed. Wolf's sisters blame his greed for his actions. They argued that they all could have lived comfortably if it was not for him.

See Brian Rogers, Brother Senteced In Plot To Kill Sisters, Houston Chronicle, May 10, 2013.

The Seven Most Common Financial Mistakes

Recently, Consumer Reports did a survey about the common financial mistakes people make. Below are the seven most common pitfalls.

1. Not revising your will or updating the beneficiaries.
2. Not informing your family about where they can find the plans and accounting. details and about the finances.
3. Not reviewing your 401(k)s by missing out on employee contribution.
4. Failing to keep adequate homeowner insurance coverage.
5. Not having an emergency fund that can cover three to six months of living.
6. Not reviewing credit reports.
7. Failing to manage your debt. 

See 7 Money Stumbles to Avoid We'll Show You How to Steer Clear of the Mistakes or Change Course, Consumer Reports Magazine, Feb. 2013.

Special thanks to Naomi Cahn (John Theodore Fey Research Professor of Law, George Washington University School of Law) for bringing this article to my attention.

Couple Swindles Hundreds of San Diego Seniors

Michael Woodward and his wife, Melissa, have been arrested and charged with 11 felonies for collecting pre-paid annual fees on contracts for in-home senior services.

The Woodwards have been accused of scamming San Diego senior citizens out of $1.9 million dollars after not following through on the contracts.  Investigators are still searching for additional victims in surrounding counties.

See Debra Gruszecki, Elder Scam: Hunt for Inland Victims of Bogus Senior Service Contracts, The Press-Enterprise, Apr. 26, 2013.