Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Tuesday, July 10, 2018

Estate Planning for Equine Owners: You Need an Expert

JustifyWith American Pharaoh and this year Justify winning the prestigious and elusive Triple Crown, Thoroughbred horse ownership has been propelled to the forefront of the public. But in relation to estate planning, it must be acknowledged that there is no one-size-fits-all for horses and horse owners.

If the bloodstock is quite large, some owners will opt to sell them off at a dispersal sale after their passing. Smaller horse operations could also benefit from a public auction unless their is a potential heir that shares in your love of horses.

"Horses that cannot be sold due to age or physical condition may require alternate arrangements. Thus, you may need to provide for the costs of aftercare or leave instructions for the delivery of retired horses to good homes."

See Shannon Bishop Arvin and Sarah Sloan Reeves, Estate Planning for Equine Owners: You Need an Expert, Insider Louisville, July 8, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.

July 10, 2018 in Current Affairs, Estate Administration, Estate Planning - Generally, Sports, Trusts, Wills | Permalink | Comments (0)

Wednesday, June 13, 2018

A Lost Skill Among the Elderly: How to Have Fun

image from https://s3.amazonaws.com/feather-client-files-aviary-prod-us-east-1/2018-06-13/fbe70167-be93-4098-8afb-b6a531393e22.pngWhen one thinks of elder law it usually brings to mind nursing homes, finances, age-related diseases, insurance policies, etc. But what about things to do with the often abundant amount of leisure time? Older adults have much more time on their hands for fun - 7½ hours of leisure a day compared with 35-to-44-year-olds, who have only around 4 hours, according to a 2016 study by Merrill Lynch and Age Wave, a consulting firm specializing in age-related issues. Often, 48 hours of the week are spent in front of the television for retired adults because they have lost the skill to simple have fun and enjoy themselves.

The idea of an activity being "fun" depends on the person. It could be involves well thought out plans like traveling to a new locale or a smaller, spontaneous adventure like a sudden pick up game of softball.

Psychologist Elizabeth Skibinski-Bortman, 71, asks each client at their first session: “What do you do for fun?” Many do not have a response at all, while others take a minute to think of an answer. This does not mean they are glum or down, but simply that they have spent the last few decades of their lives working 40 hours a week and playing around always seemed to slip their mind.

Brenda Spradlin, 62, moved to Kentucky to be closer to her only grandchild and now plays pickleball 3 times a week at a local gym with other retirees. She said she did not have time to play and have fun while she was busy raising her children and succeeding at a rewarding career. "Now I do."

See Clare Ansberry, An Overlooked Skill in Aging: How to Have Fun, Wall Street Journal, June 2, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.

 

June 13, 2018 in Current Affairs, Elder Law, Estate Planning - Generally, Humor, Sports | Permalink | Comments (1)

Sunday, June 3, 2018

Professional Athletes With Inconsistent Income Stills Needs Consistent Planning

BballProfessional sports players and Hollywood play-makers may be among those lucky few that receive hefty paychecks for their rare talents, but those checks may not always be consistent or the time-span of their careers are knowingly short-lived. Having the ability to plan for when those checks stop or are sparse is still highly important even when the numbers on those checks are significant.

Klay Thompson, the Golden Warriors star that is playing in his fourth finals appearance in a row, is well aware that his basketball career is finite. “I’m in my seventh year,” he said, “but I’ll be done in another seven years. I’ll have a whole life to live with this wealth.” The professional sports world is rife with stories of millionaire players filling for bankruptcy, including that of Antoine Walker who had to do it in 2010. Thompson understands enough of the dangers of undisciplined spending that he leaves money, planning, and financial decisions to that of his advisor. “I know basketball,” Mr. Thompson said. “I’m trying to learn more about the business world.”

See Paul Sullivan, Why Inconsistent Income Needs Consistent Planning, New York Times, June 1, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.

June 3, 2018 in Estate Planning - Generally, Sports | Permalink | Comments (0)

Tuesday, May 15, 2018

Article on They're Watching You: How the NCAA Infringes on the Freedom of Families

image from https://s3.amazonaws.com/feather-client-files-aviary-prod-us-east-1/2018-05-15/0efeade7-e73c-4b0e-8f7a-57b182a24301.pngLouis D. Brandeis recently published an Article entitled, They're Watching You: How the NCAA Infringes on the Freedom of Families, Wills, Trusts, & Estates Law eJournal (2018). Provided below is an abstract of the Article:

The NCAA’s surveillance of the family and enforcement of its rules amounts to a consumption restraint on the families of talented NCAA athletes. In order to keep its cartel in place, the NCAA must ensure that not only an athlete but anyone in his family does not extract any value from his talent. These rules disproportionately disadvantage poor individuals of color. This underscores the inherent unjust nature of the college sports system and the complicity courts and legislators required to keep it in place.

May 15, 2018 in Articles, Estate Planning - Generally, Sports | Permalink | Comments (0)

Wednesday, May 2, 2018

Tax Reform’s Impact on Professional Sports

Money ballProfessional sports teams often use the 1031 Exchange for Like-Kind Property to defer tax liability on any trades or sales of property outside the current reporting period. This includes the most likely property trades: player contracts. Under prior law, tax payments for the contracts could be deferred to future tax years and in theory, indefinitely. The effect of tax reform makes this deferral no longer available to sports franchises.

The new tax law alters the 1031 Exchange. It is now only applicable real estate transactions, primarily the sales of real estate held for productive use in a trade or business or for investment. This means that every trade of property that is not real estate must have its tax burden carefully calculated and reported, even if the properties traded are highly similar.

Even with the change, sports teams still have quite an arsenal for tax breaks even without the 1031 Exchange. Tax reform did not alter the benefits of using depreciation of tangible assets, amortization of intangible assets, and the Roster Depreciation Allowance (specifically for player contracts).

See Harvey Bezozi, Tax Reform’s Impact on Professonial Sports, Wealth Management.com, April 30, 2018

 

May 2, 2018 in Current Affairs, Current Events, Estate Planning - Generally, Income Tax, New Legislation, Sports | Permalink | Comments (0)

Monday, January 29, 2018

Rashaan Salaam’s Heisman Sells for Record $399,608; Money to Aid CTE Research

image from https://s3.amazonaws.com/feather-client-files-aviary-prod-us-east-1/2018-01-29/4597b8b8-f1f2-4dbb-ad8a-0755808585a6.pngRashaan Salaam passed away at the age of 42 in December 2016 from what was eventually ruled a suicide. Two years prior to his death, Salaam sold his Heisman Trophy to a memorabilia dealer who later sold the award to a Denver real-estate investor. On Saturday, the trophy went up for auction and garnered $399,608, the highest recorded price for such an award. A portion of the proceeds will go to help support CTE-related research in honor of Salaam’s memory.

See Darren Rovell, Rashaan Salaam’s Heisman Sells for Record $399,608; Money to Aid CTE Research, ESPN, January 21, 2018.

Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.

January 29, 2018 in Current Events, Estate Planning - Generally, Sports | Permalink | Comments (0)

Thursday, January 11, 2018

Kim Kardashian Inspires NFL Star Branden Albert to Donate $1 Mil to Charity

image from https://s3.amazonaws.com/feather-client-files-aviary-prod-us-east-1/2018-01-11/23f244d8-dd1a-44cb-bcdd-172dc38ce4e1.pngFormer NFL lineman Branden Albert is a veritable example proving that “Keeping Up with the Kardashians” is not a total drain on humanity. Albert, who played for the Dolphins and the Chiefs, said an episode of the TV series showcasing Kim Kardashian and a visit to Alexandria House, a shelter for women and children in Los Angeles, inspired him to donate $1 million to the organization. A representative from Alexandria House said they intend to use the money to build another complex that will house an additional 600 people in need.

See Kim Kardashian Inspires NFL Star Branden Albert to Donate $1 Mil to Charity, TMZ, January 11, 2017.

January 11, 2018 in Current Events, Estate Planning - Generally, Sports, Television | Permalink | Comments (0)

Tuesday, May 2, 2017

Marilyn Monroe & Joe DiMaggio's Marriage Certificate Hits the Auction Block

Dimaggio and monroeJoe DiMaggio and Marilyn Monroe’s marriage certificate is hitting the auction block, but the selling price is not cheap. The auction house expects the winning bid to reach $75,000. The baseball legend and superstar model got married on January 14, 1954 at the height of both their careers. The marriage, however, only lasted nine months because of DiMaggio’s alleged jealousy. You can bid on the iconic item through June 3.

See Joe DiMaggio, Marilyn Monroe Marriage Certificate Hits Auction Block . . . Could Fetch $75K!!, TMZ, May 1, 2017.

May 2, 2017 in Current Events, Estate Planning - Generally, Film, Sports | Permalink | Comments (0)

Aaron Hernandez's Estate Is Worth Nothing

Hernandez homeAccording to recent court docs, Aaron Hernandez’s estate is worth nothing, but his house currently has an offer for purchase. Hernandez’s girlfriend was granted approval by the court to expand her authority over his estate in order to sell his Massachusetts home. The home is worth approximately $1.3 million, but Hernandez’s victim’s family is seeking proceeds for a wrongful death claim from the sale of the home.

See Amara Grautski, Aaron Hernandez’s Estate Is Worth Nothing: Court Records, Daily News, April 27, 2017.

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

May 2, 2017 in Current Events, Estate Planning - Generally, Sports | Permalink | Comments (0)

Sunday, April 23, 2017

Aaron Hernandez's Victims' Families Go to War over His Estate

HernandezThe three families of Aaron Hernandez’s victims have pledged not to stop fighting for their share of his millions after the former NFL player committed suicide. Now, questions remain about how much of his money is left and how is death will affect these civil cases. However the cases play out, Hernandez’s four-year-old daughter and long-time girlfriend will surely lose out. In another interesting twist, because Hernandez was due for an appeal at the time of his death, a Massachusetts legal principle customarily requires the convictions of defendants who die before their appeal to be vacated. This principle can make it difficult for related civil suits to succeed. Further, if the conviction is vacated, the New England Patriots must pay Hernandez’s estate $3.5 million, a portion of his bonus that was withheld after his arrest.

See James Wilkinson, Fight for Aaron’s Millions: The Families of Hernandez’s Victims Go to War over His Estate (if There’s Anything Left) as Odin Lloyd’s Mom Says the NFL Star’s Suicide Was ‘Another Form of Justice’, Daily Mail, April 19, 2017.

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

April 23, 2017 in Current Events, Estate Planning - Generally, Sports | Permalink | Comments (1)