Wills, Trusts & Estates Prof Blog

Man posed as funeral director to steal life insurance money, police say

Two individuals, Javian Major, and Sandy Broussard, are accused of posing as funeral directors to steal life insurance money from grieving families. The victims, including Anita Thomas, Shatammiz Hicks, and Selena Devereaux, expressed outrage at the alleged scams. Major was charged with forgery, while Broussard was charged with theft after posing as a licensed funeral director and mortician. 

The suspects are accused of forging signatures to obtain life insurance payouts from deceased victims, leaving some families without proper funerals or embalming. Constable Alan Rosen emphasized the vulnerability of people during such times. Despite the charges, Major and Broussard are currently out on bond.

For more information see KPRC Staff “Man posed as funeral director to steal life insurance money, police say”, KOLD News, January 28, 2024.

‘It Happens More Than We Would Like’: What to Know About Divorce if You’re Wealthy

There is an increasing trend of managing marriage relationships with the possibility of a future divorce in mind, and is especially prevalent among wealthy couples. Geller & Co., a New York-based multi-family office firm, released a report advising wealthy couples on navigating marriage and considering the possibility that they might divorce in the future. 

Scott Bush, chief client officer at Geller, suggests treating marriage like a business. This means emphasizing premarital discussions about income, wealth, trusts, cash flow, and lifestyle financing amongst couples. Open financial communication between spouses is paramount and Bush warns of the potential negative impact of keeping financial secrets.

For more information see Andrea Riquier “‘It Happens More Than We Would Like’: What to Know About Divorce if You’re Wealthy”, Barrons PENTA, January 23, 2024.

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

Jay Leno Files for Conservatorship Over Wife Mavis' Estate After Dementia Diagnosis

Jay Leno has filed for conservatorship for his wife, Mavis, who has been diagnosed with dementia. He initiated the conservatorship to establish a living trust for her future care in case of his death. In the filing, Leno mentioned that Mavis did not contest the conservatorship and requested that she not attend the court hearing for her mental and physical health. 

 

This is the first time Leno has publicly addressed his wife's health. Mavis was supportive during Leno's recovery from burn injuries in 2022. The couple has been married since 1980, and Leno emphasized the importance of fidelity and marrying someone who aligns with one's values.

 

For more information see Kimberlee Speakman “Jay Leno Files for Conservatorship Over Wife Mavis’ Estate After Dementia Diagnosis”, People, January 27, 2024.

Government warns funeral homes to stop misleading bereaved customers about pricing

The Federal Trade Commission (FTC) has warned 39 funeral homes in the United States of potential penalties if they fail to provide accurate pricing information to customers. The FTC conducted an undercover phone sweep of over 250 funeral homes and found that 38 refused to disclose pricing information or provided inconsistent details about identical services. 

Funeral homes must follow the FTC's "Funeral Rule," which grants bereaved consumers rights and imposes strict requirements on businesses. The rule includes the obligation for funeral homes to provide customers with a general price list, allowing them to choose desired services. The median funeral cost is $7,848, and funeral prices have risen by 4.7% between December 2022 and December 2023. 

The warning letters issued by the FTC indicate that funeral homes failing to comply could face penalties of up to $51,744 per violation.

For more information see Ramishah Maruf “Government warns funeral homes to stop misleading bereaved customers about pricing”, CNN Business, January 25, 2024.

AI George Carlin Just Dropped A Comedy Special. The Estate Isn't Too Happy About That.

Comedians Will Sasso and Chad Kultgen are facing a lawsuit from the estate of George Carlin for using artificial intelligence (AI) to create a comedy routine imitating the late comedian. 

The special, titled "I'm Glad I'm Dead," was released on their Dudesy podcast, and the complaint alleges copyright infringement and violation of the right of publicity. The defendants reportedly admitted to inputting thousands of hours of Carlin's copyrighted material into an AI model to generate the script and mimic his voice. 

The Carlin estate argues that this unauthorized use goes beyond parody and infringes on Carlin's rights. The case could potentially set a precedent for using AI in artistic endeavors.

For more information see Chris Williams “AI George Carlin Just Dropped A Comedy Special. The Estate Isn’t Too Happy About That”, Above the Law, January 26, 2024.

Article: Qualifying for Long-Term Care Insurance

Don Levin (Krause Financial) recently published, Qualifying for Long-Term Care Insurance, ABA Bifocal Vol. 45 Issue 1, 2023. Provided below is an Abstract:

When they hear the term long-term care, most people think of a nursing home—a place most want to avoid. The reality is most long-term care takes place in the home, allowing individuals to stay where they are most comfortable. Long-term care insurance (LTCI) makes it a lot easier to receive professional care at home, however, the key is to purchase LTCI before it’s too late.  Clients need to view long-term care as an event to plan for, rather than a place to avoid. Planning ahead for long-term care offers more options for future care and helps clients avoid depleting their life savings or exhausting loved ones.

Retirees Flocked to Florida, South Carolina in 2023, Report Says

In 2023, there was a significant increase in retirement relocations, with over 338,000 Americans moving to retire. This marks a 44% rise from the previous year. Contrary to expectations, these retirees had higher incomes, with a median household income of $65,000 compared to $88,347 in 2022. Additionally, the demographic shifted as more retirees were under 65, including 23% under 55. The top destinations for retirement moves were Florida, South Carolina, and, surprisingly, New Jersey. California led the list of states retirees were leaving, followed by New York. Factors influencing relocation included family, health, and a desire for a lower cost of living.

For more information see Jacqueline Sergeant “Retirees Flocked to Florida, South Carolina In 2023, Report Says”, Financial Advisor, January 23, 2024.

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

Vermont Becomes Latest State to Propose Wealth Taxes

Vermont lawmakers are proposing new legislation to impose taxes on the state's wealthiest residents, aligning with a national campaign led by Democrats to address post-pandemic budget challenges. One proposal targets individuals with more than $10 million in net worth, taxing their unrealized capital gains. Another suggests a 3 percent marginal tax on individual incomes exceeding $500,000 annually. These measures, sponsored by State Representative Emilie Kornheiser, aim to alleviate the tax burden on the middle class and generate revenue, with supporters estimating a potential $98 million influx into the state's budget. The initiative is part of a broader Tax Justice Initiative, echoing Senator Elizabeth Warren's federal wealth tax proposal and gaining momentum as several states consider similar measures.

The campaign faces challenges in states like California, where Governor Gavin Newsom rejected the idea of a wealth tax to address a budget deficit. In Vermont, the legislature is under Democratic control, but Governor Phil Scott, a moderate Republican, remains cautious about taxing the wealthy further. However, the push for wealth tax is fueled by public frustration over perceived inequalities in the tax system, with a significant majority expressing concern that the wealthiest individuals aren't paying their fair share. Over 250 billionaires and millionaires have even advocated for increased taxation on the wealthy. As of 2024, lawmakers in 10 states, including California, Connecticut, New York, and Vermont, have introduced or are working on wealth-tax bills.

For more information see David W. Chen “Vermont Becomes Latest State to Propose Wealth Taxes”, The New York Times, January 23, 2024.

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

Article: Is Estate Planning Ethical In An Increasingly Inequitable World

Harry S. Margolis (Margolis Bloom & D’Agostino) recently published, Is Estate Planning Ethical In An Increasing Inequitable World?, ACTEC Law Journal, VOLUME 49, Number 1, Fall 2023 (pub 1/24). Provided below is an Abstract:

It’s hardly news that over the last half century, in terms of income and wealth, our nation has become increasingly unequal. The question I will explore in this article is whether in that context what we do as estate planners, eseentially assisting our clients in passing on intergenerational wealth by minimizing taxes and easing the process, is ethical.

At first blush, there’s nothing wrong with this. We are simply helping our clients fulfill their goals in a lawful manner.

But does it matter that we are doing this in a nation that is becoming increasingly unequal, where it’s always been easier for some sectors of the population to build wealth than others, and where our services are only available to those who can pay our fees? Does the answer change depending on who our clients are, whether they are part of the top one percent financially, the next nine percent who are doing well in our economy, or everyone else? Does it matter how much we push the envelope on tax and asset protection planning? Or whether we lobby for or against laws that help our clients preserve their welath?

Of course, for many there’s nothing wrong with the great disparities in wealth or their continuation from generation to generation. Others who believe that growing inequality and concentration of welath is aproblem feel that it’s a public policy or philosophpical question, not one of ethics for individual attorneys. 

Yet, the greater concentration of wealth in the United States has been accompanied by changes in laws that further that concentration an its preservation from generation to generation, including the increase in the threshold for estate and generation skipping taxes, the development of domestic asset protection trusts, and the elimination of the rule against perpetuities. At the same time, new scholarship has demonstrated that the costs of probate, intestacy, partition and tax takings make it more difficult for families with fewer resources to accumulate wealth. 

This article will consider the question of whether estate planning is ethical with respect to different types of estate planning, various clienteles, and government policies that act to discourage many from engaging in estate planning and suggest steps individual attorneys and our professional organizations can take to make estate planning services more available to those who are not served today. 

'Composting grandpa' bill moves through Arizona Legislature

State lawmakers in Arizona are considering a bill that would legalize natural organic reduction, also known as human composting, as an alternative to cremation and burial. 

This process uses microbes to break down the body over several weeks, resulting in nutrient-dense soil that can be used for planting trees or flowers. Natural organic reduction is promoted as an eco-friendly burial option, and several states, including Washington, California, and New York, have already legalized it. 

The bill in Arizona, which received unanimous approval in the House Regulatory Affairs Committee, may provide residents with an additional choice for the disposition of their loved ones. 

For more information, see Wayne Schutsky  “'Composting grandpa' bill moves through Arizona Legislature”, Fronteras Politics, January 19, 2024.