Wills, Trusts & Estates Prof Blog

California, not Florida, is home to the richest retirement towns in the U.S., according to a new report

GoBankingRates.com recently ranked the wealthiest retirement towns in the United States. The study considered cities with at least 25% of residents aged 65 or older, and ranked them by median household income. 

The richest retirement town is Ranchos Palos Verdes, California, with a median household income of $166,747. Other wealthy retirement towns include Highland Park, Illinois; Bainbridge Island, Washington; and East Honolulu, Hawaii. California dominates the list with four towns in the top 10, while Florida has one. 

For more information see Celia Fernandez “California, not Florida, is home to the richest retirement towns in the U.S., according to new report”, CNBC Make It, March 29, 2024.

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

"It Feels Like A No-Win Situation": This 26-Year-Old Woman's Mother Is Demanding She Refuse A $700,000 Family Inheritance Because She Feels The Money Is "Unethical"

This article features a Reddit thread, revolving around a 26-year-old woman who inherited $700,000 from her late aunt, a professional poker player. However, her mother demands that she relinquish the inheritance., as she considers the money morally tainted. 

The woman feels torn between financial stability and her relationship with her mother, who adamantly opposes the inheritance. Reddit users largely support the woman, condemning her mother's selfishness and advising her to keep the inheritance. They caution against guilt manipulation and recommend seeking legal advice to protect the inheritance. 

Overall, the consensus is in favor of the woman maintaining her inheritance and prioritizing her financial well-being.

For more information see Buzzfeed Writers “'It Feels Like a No-Win Situation': This 26-Year-Old Woman’s Mother is Demanding She Refuse A $700,000 Family Inheritance Because She Feels The Money Is 'Unethical'”, Yahoo! Life, February 22, 2024.

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

Article: Revival Trusts

Victoria J. Haneman (Creighton University School of Law) recently published, Revival Trusts, 2024. Provided below is an Abstract:

It is estimated that 1,500 Americans have made arrangements to have their remains cryogenically frozen at time of death, and 400 people have actually been frozen. Cryonics is the practice of preserving human remains at temperatures below -120 degrees Celsius after pronouncement of legal death. The technology does not yet exist to reanimate the deanimated, but futurists believe that science will soon be able to restore the deceased to healthy living condition. It would be unfortunate for the reanimated to be alive but poor, and to that end, a revival trust or cryonic suspension trust is an estate planning tool utilized by those who have decided to have their remains cryogenically frozen. The purpose of these trusts is to ensure that the newly revived deceased will have sufficient financial resources whether they are revived decades or centuries from now. Reanimation would lead to any number of tax and estate planning difficulties given that the Internal Revenue Service has yet to take a position on whether a reanimated taxpayer would be classified as a new taxpayer or as his, her, or their former self. This Article considers the myriad of legal and tax issues involved with these trusts, the public policy ramifications of permitting these trusts, and planning tactics in the face of uncertainty.

Article: Death and Taxes: A Libertarian Reappraisal

Miranda Perry Fleischer (University of San Diego School of Law) recently published, Death and Taxes: A Libertarian Reappraisal, Social Philosophy and Policy, Vol. 39, No. 1 (2022). Provided below is an Abstract:

Imagine two friends. Anna inherits nothing and works for every penny she has, while Mary inherits millions. How should a world that respects individual autonomy and private property rights treat Anna’s earnings and Mary’s inheritance? Should it tax them the same, or tax one more heavily than the other? If the latter, which one? The conventional wisdom holds that although some “right” libertarian theories justify taxing income, none justify taxing inheritances. Such taxes are “expropriations” and “an especially cruel injury,” that “runs roughshod over [a] deceased’s interest in the ends his property will serve.” This essay explores the standard libertarian objections to taxing gifts and bequests and argues that libertarians overstate their case when distinguishing the taxation of gratuitous transfers from other types of taxation. At minimum, the benefit theory of taxation embraced by many minimal statists and classical liberals mandates that the receipt of gifts and bequests should be taxed to the recipient. Moreover, the goals of curbing inherited political power and preventing wealthy families from insulating their members from market competition provide two additional explanations for why taxing inheritances to recipients is compatible with classical liberal values.

Can we really live forever?

Humans have long been on a quest to find anti-aging remedies. Ancient civilizations pursued eternal youth, and modern society shares this same goal, hoping to suceed through scientific efforts. The field of gerontology, which focuses on studying aging, has undergone a significant transformation from being associated with fringe individuals to becoming a thriving area of research. This shift is largely attributed to substantial advancements in genetics and molecular biology over the past fifty years, which have provided a more solid scientific basis for the study of aging.

Academics like Sir Venki Ramakrishnan, Coleen T Murphy, and Andrew J Scott explore anti-aging research. While biological systems are complex, significant progress in extending the human lifespan is feasible but not guaranteed, underscoring the importance of taking anti-aging research seriously.

For more information see Stephen Cave “Can we really live forever?”, Financial Times, March 26, 2024.

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

Charitable Giving Is Expected to Rise 4.2% This Year, Report Says

The Indiana University Lilly Family School of Philanthropy projects a 4.2% increase in charitable giving in the U.S. for this year, followed by a 3.9% increase in 2025. These rises exceed the average growth rate of giving since 2005 and are expected to surpass long-term averages. Factors such as stock market gains, personal income growth, and higher net worth are driving this trend. The study, funded by CCS Fundraising, highlights a departure from recent years, marked by fluctuations influenced by tax law changes, the pandemic, and inflation. 

Foundations are projected to see the most significant increase in contributions due to stock market performance, while individual giving growth is slower, reflecting a long-term trend of declining proportion in overall giving. Despite the optimistic outlook, the report acknowledges uncertainties such as global events or natural disasters that could impact charitable giving. 

Meanwhile, a survey conducted by WSJ Intelligence indicates rising confidence in the economy's future among readers, tempered by concerns over geopolitical tensions and consumer spending slowdowns.

For more information see Abby Schultz “Charitable Giving Is Expected to Rise 4.2% This Year, Report Says”, PENTA Barron’s, March 15, 2024.

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

Pennsylvania lawmakers push to find out causes of death for older adults in abuse or neglect cases

Lawmakers in Pennsylvania are urging Governor Josh Shapiro's administration to take more action in investigating the deaths of older adults following reports of abuse or neglect. There has been a significant increase in such deaths since 2019, prompting concerns from lawmakers about the Department of Aging's response. 

The Department has been criticized for not collecting cause of death information, which could help prevent future fatalities. Despite claims from the Department that they are collecting necessary data, lawmakers argue that they should have access to death certificate information. 

The spike in deaths coincided with the COVID-19 pandemic, but it's unclear if this fully explains the increase, as similar jurisdictions did not see such a steep rise. Poverty often plays a role in these cases, and the Department works with county-level agencies to investigate complaints and provide support to older adults.

For more information see “Pennsylvania lawmakers push to find out causes of death for older adults in abuse or neglect cases”, Fox News., March 22, 2024.

Article: The Viability of Inserting Descriptive Photos in Wills: A Picture Is Worth a Thousand Words

Gerry W. Beyer and Scout S. Blosser (Texas Tech University School of Law) recently published, The Viability of Inserting Descriptive Photos in Wills: A Picture Is Worth a Thousand Words, ABA Probate & Property, March/April 2024. Provided below is an Abstract:

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. 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 10 rings and she wishes to give them to 10 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. But 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.

Widow, 96, preparing to celebrate her birthday was killed in alleged murder-for-hire plot at her home

In 2022,  96-year-old widow  Violet Evelyn Alberts was tragically killed at her Montecito, California home in an alleged murder-for-hire plot, revealing a complex scheme of financial exploitation. 

Authorities discovered Alberts dead in her bed on May 27, 2022, with evidence of a broken window suggesting forced entry. A subsequent investigation by the Santa Barbara County Sheriff's Office unveiled a scheme where Alberts was deceived into signing over her valuable home by a woman named Pauline Macareno, who took advantage of Alberts' vulnerability and financial needs. 

Macareno, along with accomplices, engaged in financial elder abuse, including forging documents and establishing fraudulent entities to gain control of Alberts' assets. Macareno has been convicted and sentenced to six years in state prison for fraud. Three other individuals, Harry Basmadjian, Henry Rostomyan, and Ricardo MartinDelCampo, were arrested in connection to the case, facing charges ranging from murder to conspiracy and solicitation of murder. 

For more information see Minyvonne Burke “Widow, 96, preparing to celebrate her birthday was killed in alleged murder-for-hire plot at her home”, Aol., March 9, 2024.

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

KATHERINE JACKSON RECEIVED OVER $55M SINCE MJ'S DEATH ... So Claims His Estate

Since Michael Jackson died in 2009, his mother, Katherine Jackson, has reportedly accumulated a significant fortune, totaling over $55 million, according to claims made by MJ's estate. The estate asserts that Katherine receives a monthly allowance exceeding $160,000 and other cash payments totaling $33 million. Additionally, the estate has spent over $15 million on Katherine's luxury home, transportation, and other amenities like a private gardener, chef, and security. 

This financial information has been revealed as part of an ongoing dispute over attorney's fees that Katherine is attempting to have covered by the estate. The estate argues that Katherine can afford her legal representation, especially as she appeals against a business deal the estate made, possibly related to selling half of MJ's music catalog to Sony for a substantial sum. 

Michael's son, Blanket, recently withdrew his support for Katherine's appeal, indicating that he believes she should bear her own legal costs. Katherine's response to these claims has yet to be made public.

For more information see Alvaro Puig “Katherine Jackson received over $55M since MJ’s Death… So claims his estate”, TMZ, March 21, 2024.

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