Wills, Trusts & Estates Prof Blog

We should be better by now at talking about grief in the workplace

Although the mortality rate is 100%, many employees fear discussing grief and loss in the workplace. A recent study suggests that nearly a quarter of employees are uncomfortable approaching their managers about the issue. Some of this may be due to companies traditionally failing at accommodating grief.

Experts advocate taking up to 20 days off of work, yet most US companies provide just a fraction of that. The average bereavement policy is somewhere between 1-5 days. In addition, most Americans take unpaid time off after experiencing a loss.

“Employers know how much money and energy they put into employee engagement. And yet too often they ignore one of the biggest opportunities for engagement that results in true work loyalty: supporting employees through loss,” writes David Kessler, a workplace grief specialist and author of Finding Meaning: The Sixth Stage of Grief.

Experts also recommend ways to support peers through the grieving process by letting colleagues know they have people in their corner who value them as team members and are willing to pick up the slack if necessary. In contrast, some may find comfort in staying busy and want to carry on as usual. 

For more information see Gabriela Riccardi “We should be better by now at talking about grief in the workplace” Quartz, February 22, 2023.

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

A Jewish family fleeing the Nazis sold a Picasso in 1938. Their heirs want it back

One of Pablo Picasso's Blue Period paintings, "Woman Ironing (La rapasseuse)," is at the center of a lawsuit between a Jewish family and the Guggenheim Museum.

Karl Adler and Rosi Jacobi's heirs want the piece's repatriation, which they claim their ancestors sold under duress while fleeing Nazis in 1938. Adler desperately sold the piece below value in 1938, taking a substantial loss to obtain short-term visas during their exile in Europe. The lawsuit alleges that the subsequent owner was "profiting from the misfortune of German Jews."

"Adler would not have disposed of the painting at the time and price that he did, but for the Nazi persecution to which he and his family had been, and would continue to be, subjected," the complaint reads.

The previous owner gifted the piece and the rest of his collection to the Guggenheim in 1978. The family is seeking the painting's return or compensation. The painting's current market value is between $100 - 200 million. The museum asserts that Adler's sale of the artwork was a fair transaction between parties

For more information see Toyin Oweseje “A Jewish family fleeing the Nazis sold a Picasso in 1938. Their heirs want it back” CNN, January 2023.

How Kobe Bryant made his $600 million fortune-- and who is in charge of it

Kobe Bryant was an NBA Most Valuable Player, a five-time NBA champion, and one of the highest-paid NBA players in history. He earned $323,312,307 from the Los Angeles Lakers while on the team. 

On top of being an exceptional athlete, Bryant also had a mind for business. He secured lucrative endorsement deals with brands like McDonald’s, Nike, and Mercedes-Benz and started a $100 million venture capital firm in 2013 with Jeff Stibel. His net worth at the time of his death was around $600 million.

In 2022, Bryant’s estate reached an agreement with Nike to continue producing Bryant’s signature shoe with a swoosh that also honors his daughter, Gianna Bryant, who passed away in the same helicopter crash.

Bryant is survived by his wife Vanessa, the executor of the Bryant estate, and his daughter Natalia, Bianka, and Capri.

For more information see Weston Blasi “How Kobe Bryant made his $600 million fortune— and who is in charge of it” Market Watch, January 26, 2023.

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

The world’s oldest person made it to 122—3 reasons she lived so long, from a longevity expert who knew her

Jean Calment lived to age 122, maintaining the title of longest living person on record. Before her passing, she spoke with Jean-Marie Robine, an expert demographer who studies longevity.

The top reason Calment was able to live so long was due to being a wealthy woman. She was from a bourgeois family in the south of France, which allowed her to pursue an education, which was unheard of for women at the time. She had very low levels of stress due to never having to work and always having help around the house.

Another top factor is that Calment did not pick up her smoking habit until age 112. Additionally, due to all the free time she had, she had a robust social life. She was able to attend social events, meet new people, and travel with her husband. In fact, the pair visited the Eiffel Tower while it was still under construction.

For more information see Renee Once “The world’s oldest person made it to 122— 3 reasons she lived so long, from a longevity expert who knew her” CNBC Make It, February 21, 2023.

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

Lottery winner burns through nearly $50 million before death

Colin Weir of North Ayrshire, Scotland, won one of the largest EuroMillions jackpots in 2011. Unfortunately, he passed away in 2019, but not before burning through most of his fortune.

Weir spent an average of $131,900 weekly in an eight-year span, mostly purchasing luxury items and investments. For example, he and his wife bought a mansion, Frognal House, which they spent thousands renovating.

Weir also purchased a 55% share in the Glasgow soccer team, Partick Thistle, wiping out the team's debt and funding the team’s youth academy. Weir also got involved with politics, donating large amounts to the failed Scottish Independence Referendum campaign in 2014.

For more information see Peter Aitken “Lottery winner burns through nearly $50 million before death” Fox News, January 26, 2023.

The Perfect Retirement Investment Nobody Wants

More than 20 years ago, Mark Warhawsky, an economist and current senior fellow at American Enterprise Institute, proposed a hybrid product combining long-term care insurance with an annuity, which would incur a steady stream of payments that last as long as the customer lives. However, insurers have never implemented this type of product. 

Under the current system, people with health problems apply for long-term care insurance without disclosing their illness, driving up premiums and discouraging healthier people from applying. On the flip side, only those who think they will live a long time use for annuities, which drives up the cost, equally scaring away other applicants. The hybrid model proposed would reduce this adverse selection because customers would not have to apply for double-sided protection unless they perceived risks.

Very few people were interested in this idea when it was first proposed 20 years ago, and insurers have not bought into the idea. Some suspect this is due to the fact that it may be a tough sell as there is an ingrained bias against these types of products. 

For more information see Peter Coy “The Perfect Retirement Investment Nobody Wants” The New York Times, February 17, 2023.

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

Getting an Inheritance? Here Are 4 Things to Consider

Individuals receiving an inheritance might view this as a blessing and a curse. Dealing with losing a loved one is complex, and simultaneously organizing financial and administrative affairs can be difficult. While you may be unable to predict what was left in a will, it is possible to prepare ahead of time.

First, it is important to expect that the process will take time. Settling an estate can be nuanced, especially if the deceased did not leave a will. Executors must notify beneficiaries, pay outstanding bills, close accounts, take inventory, and pay taxes before distributing assets.

Once a beneficiary has been notified, it is essential to make a plan. Experts recommend first building an emergency fund, paying off high-interest debt, and putting the rest towards long-term goals. During this process, seeking advice from professionals like estate planning attorneys and accountants can be helpful.

Finally, this is an excellent opportunity to consider your estate plan. Talk to family about your finances while you still can and map out future financial goals.

For more information see Julia Pham “Getting an Inheritance? Here Are 4 Things to Consider” Kiplinger, January 9, 2023.

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

The World's Richest Person Is Trying To Head Off A Succession Battle

Bernard Arnault is well versed in how succession can make a company vulnerable, having previously exploited the weaknesses of other family-owned businesses, such as rival Hermes International, to gain the upper hand in the industry. Families like the Murdochs, the Kochs, and Ambani’s can all attest to the difficulties sibling in-fighting can create.

In the past year, 73-year-old Arnault has laid the groundwork to prevent infighting within his own family empire. He created a holding company, which splits control between his five children, aiming to keep LVMH Moet Hennessy Louis Vuitton SE will remain under family control for decades to come.

At this time, it is still to be determined if one of the five children will replace Arnault as Chief Executive of LVMH. Speculation about a succession battle made news in January after daughter Delphine was named head of the Christian Dior Couture brand and son Antoine became CEO of the leading holding company.

For more information see Angelina Rascouet and Tara Patel “The World’s Richest Person is Trying to Head Off a Succession Battle” Private Wealth, February 6, 2023.

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

Iowa woman mistakenly pronounced dead 'gasped for air' in funeral home

A care facility in Iowa is facing thousands of dollars in fines after a 66-year-old woman was pronounced dead at the hospice care facility in Iowa.

Staff saw no signs of life and alerted the woman's family before a funeral home was called to pick up the body. However, within minutes of arriving at the funeral home, the woman gasped for air within an hour and a faint pulse was detected. The woman ultimately died two days later at the hospice care facility, surrounded by her family.

For more information see Louis Casiano “Iowa woman mistakenly pronounced dead ‘gasped for air’ in funeral home” Fox News, February 1, 2023.

Article: Should Inheritance Be Taxed as Income?

Dario Stevanato (University of Trieste School of Law) recently published an article, Should Inheritance Be Taxed as Income?, In: World tax journal.— Amsterdam, 2022. Provided below is an abstract to the Article:

Many have advocated the taxation of bequests and gifts as income in order to achieve substantial revenues from unearned wealth and address inequality. There are, though, many drawbacks to the idea of taxing inheritance as part of the beneficiary's income. Even for those who claim the inclusion of inherited wealth in the beneficiary's income tax base, the features of the current taxes on gratuitous transfers should be retained. High tax exemption thresholds, annual exemptions for small gifts, medical expenses and transfers to spouses, tax deferral for illiquid assets and so forth would continue to apply to inherited wealth, notwithstanding their inclusion in the income tax base. In the author's opinion, the foregoing is a serious argument against including inheritances in the concept of taxable income. The special treatment to be accorded to inherited wealth, as compared to other taxable income, undermines the belief that legacies should be imposed as income, since it signals that they are inherently different. Inheritance is certainly suitable grounds for taxation, but it seems more appropriate to continue taxing it as part of an autonomous levy, without yielding to suggestions that it be included in the income tax base.