Wills, Trusts & Estates Prof Blog

Notable Deaths in 2023

Reflecting on the passing year, we remember the notable individuals who left us in 2023. Their contributions spanned various fields, leaving an indelible mark on the world. Whether through groundbreaking achievements, creative brilliance, or acts of kindness that touched the lives of many, the departed collectively shaped the narrative of our time.

For more information see David Morgan “Notable Deaths in 2023”, CBC News, December 29, 2023.

A man bought a $250 bottle of wine in the 1970s and then forgot about it in his basement. It sold at auction for over $100,000.

Mark Paulson, a California man, recently made over $100,000 from a bottle of wine he purchased in the 1970s and kept unopened in his basement. The bottle of Domaine de la Romanée-Conti La Tâche, initially bought for $250, was auctioned for $106,250. 

 

Paulson, a former commercial painter with a passion for rare wines, was convinced to buy the bottle by a wine proprietor friend. The bottle, a Jeroboam (double magnum), is rare, with only a few produced annually. Paulson's son discovered a similar bottle sold for $81,250 in October 2022, leading to their astonishment at the sale's success through Bonhams Skinner.

 

For more information see Erin McDowell “A man bought a $250 bottle of wine in the 1970s and then forgot about it in his basement. It sold at auction for over $100,000”, Business Insider, May 22, 2023.

 

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

Wealth Taxes Expected To Remain A Hot Topic In 2024

Wealth taxes are a contentious issue, with proposals at the national and state levels in the U.S. and the Supreme Court expected to rule on their constitutionality. Wealth advisors advise clients to consider the implications as such ideas gain momentum. Various proposals differ, such as California's plan to tax the wealthiest residents on their wealth and New York's proposal to tax unrealized gains annually. 

The Biden administration introduced taxes targeting the wealthy, including a minimum annual income tax for households with a net worth exceeding $100 million. The Billionaires Income Tax Act aims to close tax loopholes, impacting tactics like "buy, borrow, die." The act would mark tradable assets to market each year for tax purposes. 

Some fear unintended consequences, such as incentivizing investors to sell assets. While a federal wealth tax lacks broad support, a Supreme Court case challenges the constitutionality of taxing unrealized income. However, early indications suggest the court may not invalidate such taxes. The 2025 sunset of the Tax Cuts and Jobs Act provisions is also a client consideration.

For more information see Jeff Stimpson “Wealth Taxes Expected to Remain A Hot Topic in 2024”, Financial Advisor, December 27, 2023.

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

Family Split at LG, a South Korean Giant, Tests Corporate Succession

An ongoing lawsuit has pitted a family against each other, challenging the patriarchal traditions of a $10 billion conglomerate. The Koo family, owners of the South Korean company LG, are embroiled in a fight over the inheritance of the late chairman Koo Bon-moo's estimated $1.5 billion fortune and 11 percent stake in the company. 

Koo Bon-moo died without a will, leading to a dispute between his widow and two daughters against the adopted son, Koo Kwang-mo, who became the successor based on the principle of male primogeniture. The family accuses Koo Kwang-mo and other LG executives of deception to secure their rightful inheritance and reinforce his claim to the company. 

The legal battle challenges LG's patriarchal tradition and highlights the complexities of succession in South Korea's chaebols, influential family-run conglomerates dominating the nation's economy. The lawsuit includes transcripts of secretly recorded conversations where Koo Kwang-mo urges his adopted mother not to contest the inheritance for fear of damaging LG's image and his leadership reputation. The women also accuse an LG executive of misleading them about the existence of a will favoring Koo Kwang-mo.

For more information see Daisuke Wakabayashi and Victoria Kim “Family Split at LG, a South Korean Giant, Tests Corporate Succession”, The New York Times, December 18, 2023.

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

Death by Doctor May Soon Be Available for the Mentally Ill in Canada

Canada currently has one of the world's most liberal assisted death laws, allowing it for terminally and chronically ill individuals. However, a new law, set to take effect in March, will extend assisted dying to those with only mental illness, making Canada one of a few countries with such provisions. 

This move has sparked division among Canadians, with some seeing it as an indication of insufficient psychiatric care in the public health system. Prime Minister Justin Trudeau's government, criticized for the policy rollout, cites a 2019 court decision in Quebec as the basis for expansion. Opposition comes from both the Conservative Party, accusing the government of promoting a "culture of death," and left-leaning politicians advocating for a focus on expanding mental health care. 

Individuals who suffer from severe depression and have unsuccessfully attempted suicide are advocating for assisted dying as they feel resistant to available treatments and unable to endure continued suffering.

For more information see Vjosa Isai “Death by Doctor May Soon Be Available for the Mentally Ill in Canada”, The New York Times, December 27, 2023.

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

Renaissance bronze Apollo donated to British nation to pay inheritance tax bill

The Fitzwilliam Museum in Cambridge has received a significant addition to its collection, as a rare Italian Renaissance bronze sculpture, the Apollo Belvedere, has been donated to the nation in lieu of a £10.5 million inheritance tax bill. Created 500 years ago by Pier Jacopo Alari Bonacolsi, known as Antico, the bronze masterpiece will be showcased at the Fitzwilliam Museum, celebrated for its Renaissance and Baroque bronzes. 

The donation, facilitated through the government's acceptance in lieu (AiL) scheme, enables individuals to settle inheritance tax by transferring culturally, scientifically, or historically significant objects to the nation. Over the past decade, this initiative has brought £479 million worth of artworks and objects into public ownership.

Antico's Apollo Belvedere is a parcel-gilt bronze figure inlaid with silver eyes. Crafted around 1520-22, it is a miniature representation of the ancient Greek marble statue of Apollo, which dates back to the second century AD and stands over 7 feet tall. The bronze's uniqueness lies in Antico's ability to transform the ancient, solid, and remote marble sculpture into an exquisitely miniaturized, energized work of art. Luke Syson, Fitzwilliam's director, emphasizes Antico's skill in vividly bringing the past to life, turning a monumental work into a precious object that can be handled.

For more information see Harriet Sherwood “Renaissance bronze Apollo donated to British nation to pay inheritance tax bill”, The Guardian, December 12, 2023.

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

Guy Fieri says his kids won't inherit his fortune unless they do this

Guy Fieri, the Food Network star, has revealed that for his sons, Hunter and Ryder, to inherit his dining empire, they must first earn postgraduate degrees. 

Fieri shared in an interview that he conveyed the same message his father gave him – that they have to prove themselves academically to inherit his legacy. Fieri borrowed the idea from Shaquille O'Neal, who said, "If you want this cheese, you got to get to two degrees." Hunter and Fieri's nephew are already pursuing MBA and law programs, and Ryder, still in high school, feels the pressure. 

Fieri is not alone in emphasizing education over handing down wealth, as other celebrities like Gordon Ramsay and Mick Jagger have similar approaches, opting to provide limited financial assistance to their children to encourage independence and responsibility. Mick Jagger, for example, stated that his children do not need his massive music catalog worth half a billion dollars and suggested the money be donated to charity instead.

For more information see Hayley Santaflorentina “Guy Fieri says his kids won’t inherit his fortune unless they do this”, NBC New York, December 20, 2023.

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

Hermès heir wants to leave $6 billion to his former gardener

Nicholas Puech, the 80-year-old heir to the Hermès fortune with a net worth of around $12 billion, initially planned to leave his wealth to his charitable foundation, the Isocrates Foundation. However, he has now changed his mind. He is reportedly trying to make a former employee, described as a "doméstique" of Moroccan origin, his legal heir. 

Puech, who has no children, had agreed to leave his wealth to the foundation, but if he has a child or legally adopts an heir, that person would be entitled to at least half. The Isocrates Foundation opposes canceling the inheritance contract, stating that it seems void and unfounded from a legal perspective. The foundation is open to discussions with Puech regarding the matter.

For more information see Alix Martichoux “Hermès heir wants to leave $6 billion to his former gardener”, KRON4, December 21, 2023.

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

Destroying historical wills is foolhardy and short-sighted

The Ministry of Justice in the United Kingdom has proposed to digitize around 100 million historic wills, which has sparked controversy among genealogists, historians, and archivists. 

While digitization is generally welcomed, concerns arise from the plan to destroy the original documents after scanning. Critics argue that retaining access to originals is crucial for quality control and future advancements in scanning technology. The physical characteristics of documents, such as paper, ink, seals, and folds, hold valuable information that would be lost through destruction. The claim of permanent and inviolable accessibility for digital versions is questioned, citing past failures in digital preservation, including the BBC's "Domesday Project" and a recent cyber attack on the British Library. 

The Ministry of Justice's offer to preserve paper copies of noteworthy wills is criticized as subjective and potentially overlooking unrecognized historical contributions. The controversy highlights the need for proper dialogue between government departments and archival institutions, emphasizing the public interest in preserving knowledge as part of democracy's infrastructure.

For more information see Richard Ovenden “Destroying historical wills is foolhardy and short-sighted”, The Financial Times, December 21, 2023.

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

He quietly built a $13 million fortune. In death, he gave it all away.

Emmy Hildebrand, the executive director of an Indianapolis-based nonprofit, received a seemingly suspicious email offering a donation. However, upon investigation, she found that the sender, Dwayne Isaacs, was a legitimate lawyer representing the estate of a man named Terry Kahn. 

Kahn, who had quietly amassed a fortune through income, investing, and frugality, passed away at 77. The coexecutors of his estate distributed over $13 million to various nonprofits in Indianapolis, including those supporting teachers, domestic violence victims, and veterans and their families.

For more information see Jonathan Edwards “He quietly built a $13 million fortune. In death, he gave it all away”, The Washington Post, December 21, 2023.

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