Wills, Trusts & Estates Prof Blog

Human composting startup Recompose opens $5M crowdfunding round

Recompose, a Seattle human composting startup, wants to raise $5 million in a new crowdfunding round. This round is open to anyone willing to invest at least $1,000 in exchange for equity in the company. They previously raised $6.75 million in 2020 and $10 million in 2022 in traditional funding rounds. 

Founder and CEO Katrina Spade told Axios, "We've basically built this whole new concept and piece of the funeral industry through community support and momentum, whether it's grassroots folks helping us with legislation, or just people getting behind this idea." New York recently became the sixth state to legalize human composting, and more states slated to follow suit. 

For more information see Alex Fitzpatrick “Human composting startup Recompose opens $5 crowdfunding round” Axio, March 23, 2023.

Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention. 

Who keeps the engagement ring after a breakup? 2 law professors explain why you might want a prenup for your diamond

Engagement rings are a relatively recent trend, which did not become commonplace in the United States until the end of the Great Depression. In 1940, only about 10% of brides received diamond rings. By 1990, that number rose to 80%. With the trend going strong, the common question is, “who owns the engagement ring?” 

With the abolition of “breach of promise” actions, brides could keep the ring without getting married. When U.S. divorce courts stopped determining who was to blame for the breakup, known as no-fault divorce, they started applying a similar framework to broken engagements. 

States take different policy approaches to whether or not an engagement ring is a gift. Montanna, for example, determined that treating engagement rings as gifts conditional upon marriage perpetuates gender bias. On the other hand, California has a statute that dictates a ring must be returned if calling off the wedding was a mutual decision.

For more information see Naomi Cahn and Julia D. Mahoney “Who keeps the engagement ring after a breakup? 2 law professors explain why you might want a prenup for your diamond” The Conversation, March 22, 2023.

Special thanks to Naomi Cahn (University of Virginia) for bringing this article to my attention.

Japan’s Business Owners Can’t Find Successors. This Man Is Giving His Away.

As people continue to live longer and fewer babies are being born, countries in East Asia are grappling with the economic consequences. In a 2019 presentation, Japan’s trade ministry projected that by 2025 nearly 630,000 businesses could close shop due to the lack of leadership to carry on the business. This could cost Japan’s economy $165 billion and as many as 6.5 million jobs.

Traditionally, mergers and acquisitions have not been held in high regard culturally. As a result, many feel that it is better to shut down their company rather than sell it to a stranger or, worse, a competitor.

Hidekazu Yokoyama took a unique approach. As the owner of a logistics business on the Hokkaido island of Japan, he spent years building a thriving business only to find his children and his employees are uninterested in carrying on the family business. His solution was to post a notice advertising his company with the sale price of zero. Before posting the notice, he turned to a government-run matching program but was unable to find someone to take over. Eventually, the bank suggested advertising with Relay, which has appealed to potential buyers by appealing to their sense of community and purpose.

Thirty inquiries came in from those who were interested in Mr. Yokoyama’s offer. He chose 26-year-old Kai Fujisawa who showed enthusiasm for the business. The pair have reported a steep learning curve and concerns about the future, however, Fujisawa has expressed he is committed to the business.

For more information see Ben Dooley and Hisako Ueno “Japan’s Business Owners Can’t Find Successors. This Man Is Giving His Away.” The New York Times, January 3, 2023.

Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention. 

An 8-year-old girl meant to inherit a $61 million diamond business in India has renounced her fortune to become a nun

Devanshi Sanghvi, an eight-year-old girl in India, made headlines earlier this year as she was initiated into monkhood under the Jain faith in a five-day ceremony. She is among the youngest to be inducted into the Jain monkhood and renounced the $61 million business she was slated to inherit from her family’s diamond business.

Jainism is one of the world’s oldest religions, originating in India, and emphasizes non-violence, meditation, and rejecting worldly pleasures. Some Jain families are said to encourage their children to become nuns or monks to raise the family’s social standing. It has been reported that upon initiation, nuns pluck out their own hair, walk barefoot, and only eat what they receive in alms. 

"Devanshi has chosen to live a life on the path of spiritual development," read an Instagram post that appears to have been written by her parents. "We know it is tough, but we are aware that the Diksha life will bring far more happiness than we can ever provide."

For more information see Matthew Loh “An 8-year-old girl meant to inherit a $61 million diamond business in India has renounced her fortune to become a nun” Yahoo! News, January 19, 2023.

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

Senior care is crushingly expensive. Boomers aren’t ready.

Long-term care costs are among the most significant financial risks facing senior Americans and their families today. Assisted living facilities are a fast-growing option for elderly care, which provide homelike environments for those who need day-to-day help. However, they start at around $60,000 annually on average, with the cost rising as residents age.

On the other hand, nursing homes provide a more intensive medical care environment; however, most people cannot afford the $120,000 price tag and would prefer to spend their final days in their own homes. In-home assistance from a care aide is an alternative to moving into a facility, but this cost starts at around $56,000 a year. Additionally, a shortage of home care aides was exacerbated by the pandemic.

Many families are now faced with the option to take out loans, liquidate real estate, ask family members to help with costs or turn to fundraising sites like GoFundMe for help. Unfortunately, it has become a daunting expense and puts those with dementia and other infirmities at significant risk.

For more information see Christopher Rowland “Senior care is crushingly expensive. Boomers aren’t ready.” The Washington Post, March 20, 2023.

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

Bulgari heirs battle over massive $129 million family trust

Italian luxury fashion house, Bulgari, known to be the world’s most enduring jewelry brand, is caught in a legal battle. Two sisters who inherited tens of millions from the family trust are now “blanketing most of Wall Street with subpoenas.”

Sotiri Bulgari created a humble family jewelry business that grew into a massive brand that was sold for $5.2 billion in cash and stock in 2011. The Bulgari family trust was created for matriarch Anna, who left the $129 million fund to her daughters Ilaria, Veronica, and Natalia upon her death in 2019. 

Each sister has received a $40 million payout, but the fight continues in court over the trust distribution. Lawyers and accountants are currently reviewing 3,500 pages of documents spanning 15 years of financial transactions.

For more information see Kathianne Boniello “Bulgari heirs battle over massive $129 million family trust” New York Post, March 18, 2023.

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

Taylor Swift’s Cat Olivia Benson Is Richer Than All of Us

Taylor Swift made headlines this morning as she kicked off her The Eras Tour with 44 songs presented to the audience over three hours last night. However, a different member of the Swift household is in the news, as her cat, Olivia Benson, has landed the number three spot on the Forbes-style list of World's Wealthiest Pets.

AllAboutCats.com calculates a pet's net worth using Instagram data and estimates how much each pet could make per Instagram if they posted. While not scientifically perfect, as Olivia Benson does not even have an Instagram account, the site believes the Scottish fold's net worth is around $97 million.

For more information see Jon Blistein “Taylor Swift’s Cat Olivia Benson Is Richer Than All of Us” Rolling Stone, January 4, 2023.

Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention. 

Did Riley Keough lock Priscilla Presley out of Graceland? A look at the drama plaguing Elvis Presley's family.

Reports earlier this week claim that Riley Keough visited Graceland to change the locks on the upstairs doors and archives. Graceland has disputed this rumor. 

"These reports are entirely untrue," a spokesperson tells Yahoo Entertainment. "No locks at Graceland have been changed since Lisa Marie's passing."

Keough is currently at odds with her grandmother, Priscilla Presley, over Lisa Marie Presley’s trust. Sources close to the family say that Riley is shocked that her grandmother is contesting the will and is heartbroken it has become a public matter. If Priscilla gets her way, she will be co-trustee of her daughter’s estate with Riley.

For more information see Taryn Ryder “Did Riley Keough lock Priscilla Presley out of Graceland? A look at the drama plaguing Elvis Presley’s family.” AOL, March 14, 2023.

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

Article: A Study of Tax Lawyers Discussing Duties

Michael Hatfield (University of Washington School of Law) and Michelle M. Kwon (University of Tennessee College of Law) recently published an article, A Study of Tax Lawyers Discussing Duties, Tax Lawyer, Vol. 76, No. 1 [73], 2022. Provided below is an abstract to the Article:

This Article reports the first qualitative empirical study of U.S. tax lawyers. We interviewed women lawyers who were tax planning specialists. Though this is the first such study of U.S. tax lawyers, this methodology has been used often to study the professional ethics of other tax practitioners around the world. We had three research questions that we sought to answer through dynamic conversations on topics such as the distinctions between good and bad tax plans and good and bad tax lawyers and also the joys and stresses of tax practice. Our first research question was as to the make-up of the U.S. tax bar. The bar was described largely as very smart, team-playing puzzlers. We did not hear concern about widespread failures of professional responsibility. Our second research question was about how U.S. tax lawyers experience ethical tensions. We heard about the tension involved in determining and communicating the right advice, managing clients, and billing. Our third question: how do U.S. tax lawyers discuss their professional duties? We heard about competence, diligence, and other duties from the ABA Model Rules. We did not hear tax-specific language like “substantial authority” or “realistic possibility of success.” We also did not hear about a special duty to the tax system. We conclude the Article with pragmatic suggestions for state bar tax sections, tax law professors, and academic researchers.

Courts Must Revamp Approach to Guardianship, a Potent Legal Tool

As part of Bloomberg Law’s multipart investigation into adult guardianship, reporters asked professors Naomi Cahn (University of Virginia,) Rebekah Diller (Yeshiva University Cardozo School of Law,) and Deirdre Smith (University of Maine School of Law) to weigh in on the role guardianships play in various states, and how courts oversee the implementation.

For more information see Naomi Cahn, Rebekah Diller, and Deirdre Smith “Courts Must Revamp Approach to Guardianship, a Potent Legal Tool” Bloomberg Law, March 6, 2023.

Special thanks to Naomi Cahn (University of Virginia) for bringing this article to my attention.