Wills, Trusts & Estates Prof Blog

Woman Charged In Alleged Scheme To Sell Elvis Presley's Graceland Home

A Missouri woman, Lisa Jeanine Findley, has been arrested for allegedly orchestrating a fraudulent scheme to sell Elvis Presley’s Graceland property in Memphis. She is accused of attempting to steal the Presley family’s ownership by falsely claiming that Presley’s daughter had used the property as collateral for an unpaid loan. The scheme involved creating fake documents and trying to extort a settlement from the Presley family. A judge had previously halted a foreclosure sale of Graceland, suggesting that the attempt to auction the property might be fraudulent. 

For more information see Alanna Durkin Richer and Jonathon Mattise "Woman Charged In Alleged Scheme To Sell Elvis Presley's Graceland Home," HuffPost, August 16, 2024.

Special thanks to Laura Galvan (Attorney, San Antonio, Texas) for bringing this article to my attention.  

A Song Man and a Law Professor Walk Into the SEC—And Try to Take Down Its NFT Agenda

Brian Frye, a law professor, and Jonathan Mann, a singer-songwriter, have filed a federal lawsuit against the U.S. Securities and Exchange Commission (SEC) to challenge the agency's stance on NFTs. The SEC has previously sued select NFT projects, labeling them as unregistered securities, without clearly defining what types of NFT projects are legal. Frye, who had set up a trap in 2019 by minting an NFT of a letter declaring his art project as an unregistered security, aims to force the SEC to clarify its position on NFTs through this lawsuit.

The lawsuit follows the SEC's recent action against actress Mila Kunis' NFT-based cartoon series "Stoner Cats," which settled with the agency for $1 million. This case, and others like it, sparked outrage among artists who rely on NFTs for income, including Mann, who decided to take legal action. Teaming up with Frye, Mann hopes to challenge the SEC's authority to regulate their NFT-backed artworks as securities, and in doing so, protect the rights of artists who create and sell NFTs.

Frye and Mann's lawsuit seeks to expose what they see as a fundamental inconsistency in the SEC's approach to NFTs, questioning why certain NFT projects are targeted while others are not. They argue that the SEC's lack of clarity and selective enforcement creates uncertainty in the NFT market. The outcome of this legal battle could have significant implications for the future regulation of NFTs, though Frye and Mann acknowledge that a definitive resolution may require further legislation or a Supreme Court ruling. Nonetheless, both feel a sense of catharsis in confronting the SEC and seeking answers.

For more information see, Sander Lutz "A Song Man and a Law Professor Walk Into the SEC—And Try to Take Down Its NFT Agenda" Decrypt, July 31, 2024.

Special thanks to James Lamm (Minnesota Estate Planning and Tax Attorney) for bringing this article to my attention.

The viral $488,000 San Francisco home has a buyer — and the deal exposes a dramatic backstory

The headlines were buzzing: a three-bedroom home in San Francisco's Russian Hill was listed for an unbelievable $488,000. The catch? A tenant was paying just $417 a month under a lease that lasted until 2053. Despite this unusual setup, the house got several offers, some even higher than the asking price. Surprisingly, the accepted offer came from Cheryl Lee, who lives there with her mom, Sandra. This property has sparked a family feud, reminiscent of past high-profile inheritance disputes in the area.

The home, located at 30 North View Court, was built in 1924 and bought by Florence and Kenneth Goo in 1968. They placed it into a family trust in 1991. After Florence passed away, the trust split into two. The current owners are the Kenneth Goo Family Trust-B and the Koon K. Goo Revocable Trust. Trusts are common in estate planning since they let assets transfer directly to heirs, bypassing probate. Todd Lee, appointed as trustee by his grandfather Kenneth in 2020, chose Cheryl's offer despite higher bids because of family ties and responsibilities.

A big part of this story is the long-term lease signed by Kenneth Goo before he died in 2022. Originally signed in 2019, the lease required the tenant to cover property taxes and insurance, ensuring Cheryl and possibly Sandra had a place to live. In 2021, the lease was amended to cap payments at $5,000 annually and extend the term to 2053. This lease also allowed subleasing, benefiting Cheryl financially. Legal experts confirmed the lease’s validity, making eviction or a more profitable sale tricky.

The sale has revealed deep family issues, with allegations of mismanagement. Sandra Lee opposed the sale, accusing her son Todd and her brother Cedric of mishandling the trust and legal fees. Todd denies these claims, saying he’s just trying to do his job as trustee amidst financial strain. The trust’s funds were depleted after Kenneth's death, putting more pressure on the family. A property reassessment also raised taxes significantly, adding to their financial burden.

Figuring out the sale of the house depends on settling these family disputes and financial issues. Selling the house without tenants could get around $1.8 million, but the current situation lowers its value. If Sandra and Cheryl’s bid is accepted, they’d own a potentially valuable asset, while Cedric's share would be much less. This ongoing family drama highlights the complicated and emotional nature of handling inherited properties.

For more information see Kathleen Pender "The viral $488,000 San Francisco home has a buyer — and the deal exposes a dramatic backstory" San Fransisco Chronicle, June 29, 2024. 

Special thanks to John O’Grady (Attorney, San Fransisco, California) for bringing this article to my attention.

National Archives and Ancestry team up to digitize millions of records

The National Archives and Records Administration (NARA) has partnered with Ancestry to digitize tens of millions of historical records, significantly expanding public access to these documents. This agreement, described as the largest archive collaboration for Ancestry to date, involves digitizing collections previously unavailable online, including World War II military reports, Korean War draft cards, and immigration and naturalization records. The collaboration aims to make an initial 65.5 million records accessible on Ancestry’s platform within the next two years, eventually integrating these records into the publicly accessible National Archives database​.

This initiative builds on a longstanding partnership between NARA and Ancestry, which has been active since 2008. The new agreement includes placing Ancestry technicians and scanning machines at NARA facilities to expedite the digitization process. Key collections slated for digitization include INS passenger and crew arrival and departure lists and death notices of U.S. citizens abroad. This enhanced digitization effort is designed to overcome geographic barriers, making these valuable records accessible to researchers and families nationwide​.

The project also complements NARA's broader goal of digitizing 500 million pages of records by 2026. The digitization will take place at various National Archives facilities, including those in Denver, St. Louis, and San Bruno, with the scanning of military naturalization petitions beginning soon. This effort not only preserves historical data but also fills gaps left by past events, such as the 1973 fire that destroyed millions of military records. The collaboration underscores a shared commitment to preserving and democratizing access to America’s rich historical heritage​.

For more information see Michael E. Ruane "National Archives and Ancestry team up to digitize millions of records" The Washington Post, May 9, 2024. 

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

John Lennon’s lost guitar sold for nearly $3M — and you’ll never guess where it was found

A guitar once owned by John Lennon, which had been lost for over 50 years, was recently sold at auction for nearly $3 million. The instrument, a rare 1962 Gibson J-160E, went missing after a Beatles concert in 1963 and was presumed lost forever. Miraculously, it was discovered by a guitarist in San Diego, who had unknowingly purchased it in the 1970s. The guitar's provenance was confirmed through meticulous research and comparisons with photographs of Lennon playing it during the early Beatles years.

The guitar is notable not only for its connection to Lennon but also for its role in the creation of some of the Beatles' early hits. Lennon and George Harrison both used this model to compose iconic songs like "I Want to Hold Your Hand" and "She Loves You." Its return to the public eye has been celebrated by Beatles fans and music historians alike, highlighting its significance in the band's history and its contribution to their groundbreaking sound.

The sale of Lennon's guitar at Julien's Auctions fetched a staggering $2.41 million, making it one of the most expensive guitars ever sold. This event underscores the enduring legacy and immense value placed on Beatles memorabilia. Collectors and fans continue to cherish artifacts from the band, reflecting the profound and lasting impact of the Beatles on music and popular culture.

For more information see Eric Todisco "John Lennon’s lost guitar sold for nearly $3M — and you’ll never guess where it was found", Yahoo Entertainment, May 30, 2024.

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

Cher wins years-long legal battle over royalties with Sonny Bono’s widow

Cher has emerged victorious in a prolonged legal battle over royalties from her ex-husband and former musical partner Sonny Bono. The dispute, which spanned several years, centered around Cher’s entitlement to Sonny's royalties following his death in 1998. The legal contention began when Sonny's widow, Mary Bono, attempted to terminate Cher’s right to these royalties. However, a federal judge ruled in Cher's favor, affirming her ongoing right to the royalties as per the original agreement made during their 1975 divorce.

This victory is a significant milestone for Cher, not only affirming her legal rights but also securing her financial interests linked to her early career. The royalties in question pertain to hits from the Sonny & Cher era, including classics like "I Got You Babe" and "The Beat Goes On." These songs have not only been cultural landmarks but have also generated substantial revenue over the decades. The court’s decision underscores the importance of adhering to contractual agreements, even decades after they were made, and highlights the enduring financial implications of early career successes.

The ruling also sets a precedent for similar cases involving intellectual property and the rights of ex-spouses. Cher’s legal journey underscores the complexities that can arise in managing and distributing royalties, especially when multiple parties are involved. For artists and their estates, this case serves as a reminder of the long-term impact of divorce settlements and the necessity of clear, enforceable contracts. As Cher continues to celebrate this legal win, it also serves as a testament to her enduring legacy and the lasting value of the music she created with Sonny Bono.

For more information see Elizabeth Stanton, "Cher wins years-long legal battle over royalties with Sonny Bono’s widow" Fox Business, May 30, 2024.

Identity thief claims to be behind Graceland foreclosure attempt: report

A man claiming to be the mastermind behind a scheme to foreclose Elvis Presley's Graceland mansion has revealed his involvement in an interview with The New York Times. The purported fraudster stated that he works with a crew that targets vulnerable individuals to steal properties using falsified documents. The attempt to auction Graceland was allegedly based on a forged loan agreement supposedly taken out by Lisa Marie Presley.

Riley Keough, the granddaughter of Elvis and sole heir to Graceland, challenged the foreclosure in court, asserting that the loan agreement was fraudulent. She obtained an injunction to halt the sale. The company behind the foreclosure attempt, Naussany Investments and Private Lending, claimed Lisa Marie owed them $3.8 million, but withdrew their claims after the court hearing.

The Tennessee Attorney General has launched an investigation into the matter. The alleged identity thief, who communicated with the Times via email, admitted to orchestrating the scam, targeting properties using forged documents. The case remains complex, with questions about the legitimacy of Naussany Investments and the authenticity of the documents used in the foreclosure attempt.

For more information see Michael Dorgan "Identity thief claims to be behind Graceland foreclosure attempt: report", Fox News, May 28, 2024.

NCBE adds limited Trusts & Estates coverage to NextGen Bar Exam

The National Conference of Bar Examiners recently announced:

From July 2026 through at least February 2028, trusts and estates concepts will appear on every NextGen exam in a performance task and may also be included in integrated question sets. During this period, trusts and estates concepts will be tested with the provision of legal resources.

Elvis’ granddaughter fights Graceland foreclosure sale and alleges fraud

Danielle Riley Keough, granddaughter of Elvis, is the current owner of Graceland, the singer's famous Memphis home. Keough was able to get a restraining order against the sale of the home before the court rules on her application for an injunction. Keough is suing Nusanny Investments & Private Lending LLC to stop a foreclosure sale of Graceland alleging fraud and saying the company behind the sale does not exist and has no rights to the property. 

The company has presented documents appearing to show that Lisa Marie Presley, Keough's late mother, had borrowed $3.8 million from Nausanny Investments and gave the deed of trust encumbering Graceland as security. Keough and Elvis Presley Enterprises insist these documents are false and Lisa Marie never borrowed money nor gave the deed of trust to the company. Elvis Presley Enterprises says the counter lawsuit has been filed to stop the fraud. 

For more information see Raja Razek "Elvis’ granddaughter fights Graceland foreclosure sale and alleges fraud", CNN, May 21, 2024. 

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

Britney Spears settles bitter legal battle with estranged father Jamie Spears

Britney Spears has settled her legal dispute with her estranged father, Jamie Spears, finally ending their conservatorship case. The 42-year-old pop star's life and finances were under Jamie's control for 14 years, but the arrangement ended two years ago. The recent settlement resolves an outstanding issue regarding Jamie's request for Spears to cover his legal fees, with the details remaining undisclosed.

Spears' lawyer, Mathew Rosengart, expressed pride in representing her and stated that her desire for freedom is now fully realized now that she is no longer required to participate in court proceedings related to the conservatorship. 

After her conservatorship ended, Spears had many successful music collaborations and published a bestselling memoir, "The Woman in Me," which reached number one on the New York Times best-seller list in its first weeks.

Rosengart emphasized that Spears' achievements would not have been possible under the conservatorship and reiterated his gratitude for being able to assist in restoring her civil rights and liberties. While Jamie Spears' attorney did not immediately respond to requests for comment, the settlement marks a significant milestone in Britney Spears' ongoing journey towards autonomy and independence.

For more information see Ashley Hume, "Britney Spears settles bitter legal battle with estranged father Jamie Spears" Fox News, April 27, 2024.