Wills, Trusts & Estates Prof Blog

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

Tuesday, June 20, 2023

Mom’s will gives away our family home. Carolyn Hax readers give advice.

Estate planningWashington Post readers were asked to channel their inner Carolyn Hax to give advice on how to handle a mother changing her will and leaving the family home to her new husband:

My mother is in her mid-70s and is married to a man in his mid-80s (my dad died when I was 19). I went to visit her on Mother’s Day, and she informed me she plans to change her will to allow her husband to inherit the house my sister and I grew up in. It is a small house in a pricey neighborhood. While I have always encouraged my mom to be generous with herself and not worry about leaving my sister and I large amounts of money (she is very thrifty), I am devastated by this news. In the past she wanted my sister and me to inherit this house — provided we allowed him to live there as long as he wanted. When the change is made, presumably his two daughters would inherit his estate, including the house. They never lived in this house, and I am devastated by this proposed change. For one, it is the bulk of the estate. And second, she had previously told my sister and me that she would never do this.

This is the place I last saw my father alive. I know intellectually that she is entitled to do what she wants. And I know he is likely to predecease her. But having been divorced after a long marriage, I now feel like I can trust nobody to honor their commitment and word. I still haven’t told my sister because she has gone no-contact with my mom in the past.

Do I have the right to ask my mom to reconsider? I am the executrix of the estate. I don’t want to get into an unnecessary argument with my mom late in life.

— Will And Resentment

To read their advice see Carlyn Hax and Haben Kelati “Mom’s will gives away our family home. Carolyn Hax readers give advice” The Washington Post, May 31, 2023.

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

June 20, 2023 in Estate Planning - Generally, Wills | Permalink | Comments (0)

Monday, June 19, 2023

A More Humane Model for Eldercare in the U.S.

Leonard L. Berry, Mary Kummer Naber, Sunjay Letchuman, and Peter Fitzgerald recently published an article, A More Humane Model Eldercare in the U.S., Harvard Business Review, 2023. Provided below is summary of the article:

On the whole, the care for elderly poor people with chronic illnesses leaves a lot to be desired in the United States. The Program of All-Inclusive Care for the Eldery (PACE), a comprehensive, integrated, community-based care approach that lets older adults continue to live at home as long as possible, can serve as a model for improving the needs of this population. This article examines PACE Southeast Michigan, an outstanding PACE program.

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

June 19, 2023 in Articles, Estate Planning - Generally | Permalink | Comments (0)

“A Picture Is Worth a Thousand Words” – The Viability of Inserting Descriptive Photos in Wills

Here is the abstract of an article Scout Blosser and I recently posted on SSRN entitled “A Picture Is Worth a Thousand Words” – The Viability of Inserting Descriptive Photos in Wills:

Specific testamentary gifts are a very important component of a will. They help clients pass important family heirlooms as well as transfer assets of high value. However, a specific gift can invoke a complicated and tedious process for the estate planner and for executors. Specific gifts of tangible personal property require precise descriptions with sufficient detail so that a person completely unfamiliar with the testator’s property may determine exactly what property is being gifted.

The necessity for specific detail is enhanced when gifts of similar nature are being gifted to multiple beneficiaries. For example, assume a client has ten rings she wishes to give them to ten different grandchildren. Each ring would require a description with sufficient specificity to ensure that the executor transfers the correct ring to the correct grandchild.

Traditionally, the estate planner needs to include lengthy and tediously drafted descriptions in the will. However, could an estate planner alleviate the uncertainty surrounding specific gift descriptions through the insertion of photographs of the property being described? An insertion of a photograph of the item, coupled with the description, would provide an additional layer of assurance to the testator that the gift will take effect as intended.

This article discusses the viability of this technique and the steps estate planners should take if they elect to try this untested technique.

June 19, 2023 in Articles, Estate Planning - Generally, Wills | Permalink | Comments (0)

Sunday, June 18, 2023

‘Lottery lawyer’ who stole $107M from winners for yachts, vacations gets 13 years for mobbed-up scheme

LotteryAttorney, Jason Kurland, was convicted last year of tricking lottery winners into handing over their money for investments and putting the cash into risky businesses that he co-owned.

Kurland was a partner at a Long Island law firm and targeted jackpot-winning clients starting in 2018. These newly wealthy clients paid him hundreds of thousands of dollars to advise them on how to invest their earnings. Instead, he received kickbacks, abused their trust, used the money to take expensive vacations, and purchased two yachts and a luxury vehicle.

In court, Kurland tearfully told the judge that he was ashamed and embarrassed when he received a lengthy sentence.

For more information see Steven Vago and Priscilla DeGregory “‘Lotter lawyer; who stole $107M from winners for yahcts, vacations gets 13 years for mobbed-up scheme” New York Post, June 15, 2023.

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

June 18, 2023 in Estate Planning - Generally | Permalink | Comments (0)

Saturday, June 17, 2023

Harvard morgue manager, others charged in theft and sale of human body parts

Estate planningCedric Lodge, the former manager at the Harvard Medical School morgue, has been indicted in the theft and sale of human body parts for his role in stealing portions of dissected cadavers that were donated to the school between 2018 and early 2023 for education and research purposes.

The body parts, which included heads, brains, skin, and bones, were taken without the school's knowledge or permission. The indictment charges Mr. Lodge, his wife, and three others with conspiracy and interstate transport of stolen goods.

For more information see Angela Giuffrida “Harvard morgue manager, others charged in theft and sale of human body parts” VA Lawyers Weekly, June 16, 2023.

Special thanks to Deborah Matthews (Virginia Estate Planning Attorney) for bringing this article to my attention.

June 17, 2023 in Estate Planning - Generally | Permalink | Comments (0)

Friday, June 16, 2023

Death of Berlusconi turns spotlight on to fortune he left behind

Silvio_Berlusconi_1996Silvio Berlusconi, Italy’s longest-serving Prime Minister, died at age 86. He had an estimated wealth of $7.4 billion, with investments in real estate, banking, media, and football. His main asset is Mediaset, Italy’s largest commercial broadcaster. 

Berlusconi has five children, Marina, Pier Silvio, Barbara, Eleonora, and Luigi. He left no public indication of who would take over his empire upon his death; however, it has been reported that he wanted to avoid any succession dispute that has plagued other wealthy Italian families. 

A source who spent time with Berlusconi just ten days before he died said that he “tied up his will” and that “everyone had been taken care of,” including his ex-wives.

For more information see Angela Giuffrida “Death of Berlusconi turns spotlight on to fortune he left behind” The Guardian, June 16, 2023.

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

June 16, 2023 in Current Events, Estate Planning - Generally | Permalink | Comments (0)

Thursday, June 15, 2023

TikToker reportedly fakes his own death, then returns to funeral in helicopter: ‘Welcome to my funeral’

EstrangedBelgian TikTok star, David Baerten, claims he wanted to conduct a social experiment and teach his family a “life lesson” by faking his death. He is seen in videos shared on his TikTok account arriving at his funeral via helicopter.

Baerten told the Times of London, “What I see in my family often hurts me” after the family reportedly grew apart. So he concocted a plan to show his family members that they shouldn’t wait until someone dies to reunite.

For more information see Jeffrey Clark “TikToker reportedly fakes his own death, then returns to funeral in helicopter: ‘Welcome to my funeral’” Fox News, June 15, 2023.

June 15, 2023 in Estate Planning - Generally | Permalink | Comments (0)

Woman presumed dead found alive in coffin at her wake in Ecuador

CoffinA 76-year-old woman in Ecuador was found alive and knocking on her coffin during her wake in Babahoyo, Ecuador. It has been widely reported that the woman is Bella Yolanda Montoya Castro.

A video has been circulating on social media showing the woman’s son pleading for an ambulance to arrive and, later, the woman inside the coffin receiving medical attention from paramedics. She had previously been declared dead and is now in intensive care at the Martín Icaza Hospital in Babahoyo – the same facility initially declared her deceased.

For more information see Duarte Mendonca “Woman presumed dead found alive in coffin at her wake in Ecuador” CNN World, June 13, 2023.

June 15, 2023 in Current Events, Estate Planning - Generally | Permalink | Comments (0)

Wednesday, June 14, 2023

The Greatest Wealth Transfer in History Is Here, With Familiar (Rich) Winners

Estate planning

1989 family wealth in the United States was roughly $38 trillion when accounting for inflation. By 2022, that number will be $140 trillion, with Baby Boomers holding half of that wealth.

$84 trillion is projected to be passed down from older Americans to millennials and Gen X by 2045, with $16 trillion to be transferred in the next ten years. The wealthiest 10 percent of households will be giving and receiving a majority of the transfers. Within that, the top 1 percent holds as much wealth as the bottom 90 percent.

Baby Boomers benefited greatly from the price growth within the financial and housing markets, with the average price of U.S. housing rising about 500 percent since 1983. Around this time, most baby boomers were buying their first homes.

Additionally, those who have invested in the stock market have found even more significant returns, seeing more than 2,800 percent growth since 1983, when index funds took off as mainstream investments for middle-class professionals. Boomers have benefited most from decades of price growth; however, most were already wealthy.

For more information see Talmon Joseph Smith “The Greatest Wealth Transfer in History is Here With Familiar (Rich) Winners” The New York Timesl, May 14, 2023.

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

June 14, 2023 in Estate Planning - Generally | Permalink | Comments (0)

Dispute Erupts Over Former Zappos CEO Tony Hsieh’s Happiness Brand

HsiehTony Hsieh, former Zappos Chief Executive Officer, died without a will at age 46 in 2020, prompting a yearslong battle over his $500 million estate. Now, longtime friend and business partner Jenn Lim is suing Hsieh’s family over ownership of “Delivering Happiness,” Hsieh’s workplace culture brand. 

It is reported that in the last year of his life, Hsieh struggled with alcohol and drug use, culminating in a “six-month downward spiral.” After retiring as chief executive of Zappos and selling his company to Amazon for more than $1 billion, friends say Hsieh began to struggle. 

The entrepreneur began to act erratically, making real estate and financial deals worth millions. The walls of his home were covered with sticky notes outlining business plans and contracts, and he surrounded himself with a new group of friends who indulged his eccentric behavior. He ultimately died from injuries sustained in a house fire after his family reported his fascination with fire had intensified. One day before the fire, Hsieh was planning to check himself into a rehabilitation center.

Prior to the final tumultuous year, Hsieh was known for promoting happiness among workers at Zappos and delivered this philosophy in a 2010 bestselling book, “Delivering Happiness: A Path to Profits, Passion, and Purpose.” This philosophy was adapted into a brand and consulting firm, which Hsieh and Lim jointly owned. Lim is currently CEO of the Delivering Happiness business, holding a 50% stake, with the other half owned by Hsieh’s estate.

According to Lim’s suit, Hsieh’s estate has accused Lim of acting improperly while managing the company. Lim too published a book, “Beyond Happiness: How Authentic Leaders Prioritize Purpose and People for Growth and Impact,” in which she took a $517,000 loan from Delivering Happiness to fund. She began paying the loan back earlier this year; however, Hsieh’s estate claims the loan is fraudulent and is demanding full ownership of the Delivering Happiness intellectual property. 

For more information see Katherine Sayre “Dispute Erupts Over Former Zappos CEO Tony Hsieh’s Happiness Brand” The Wall Street Jouranl, June 9, 2023.

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

June 14, 2023 in Estate Planning - Generally | Permalink | Comments (0)