Wills, Trusts & Estates Prof Blog

Ruth Bader Ginsburg reportedly left $40,000 to her housekeeper of 22 years

Ruth Bader Ginsburg’s will included an unexpected and touching detail, as reported by the Independent. While the majority of her estate was left to her children, Jane and James Ginsburg, she also set aside $40,000 for Elizabeth Salas, her housekeeper of 22 years. The gesture was a heartfelt acknowledgment of Salas’s loyalty and friendship over two decades. Salas, who shared a unique bond with Ginsburg, was seated beside President Joe Biden when Ginsburg lay in state at the U.S. Capitol—a historic first for a woman.

For more information see Jisha Joseph "Ruth Bader Ginsburg reportedly left her estate to one person — her housekeeper of 22 years", Scoop Upworthy, January 4, 2025. 

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

Tomiko Itooka of Japan, World’s Oldest Person, Dies at 116

Tomiko Itooka, the world's oldest person at the time of her death, passed away at 116 in Ashiya, Japan. Born on May 23, 1908, in Osaka, she lived through monumental changes in Japan’s history, from its imperial expansion to its post-war transformation into a peaceful democracy. The mayor of Ashiya praised her for inspiring courage and hope throughout her life, and she had been officially recognized as the world’s oldest living person by Guinness World Records in September 2024.

Ms. Itooka grew up in prewar Japan, excelling in volleyball during high school before marrying Kenji Itooka, the owner of a textile company. During World War II, she managed the family business and raised four children while her husband oversaw operations in Korea, then under Japanese control. Widowed in 1979 after 51 years of marriage, she relocated to Ashiya, where she remained active, hiking into her 80s and ascending shrine steps at 100 without assistance.

Known for her vibrant spirit and remarkable longevity, Ms. Itooka credited her long life to bananas and Calpis, a popular Japanese dairy drink. She left behind a legacy of resilience and determination, surviving by one daughter, one son, and several grandchildren. Her passing marks the end of an extraordinary life that spanned over a century of profound global and personal transformations.

For more information see Miharu Nishiyama and Hisako Ueno “Tomiko Itooka of Japan, World’s Oldest Person, Dies at 116”, The New York Times, January 4, 2025.

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

Corporate Transparency Act Update

On December 31st, the government filed an application in the United States Supreme Court asking it to stay the District Court's injunction during litigation, or to reduce it to only the plaintiffs in the Texas Top Cop Shop case. Here is a link to read the entire application.

'Keep it quiet:' Here's what to know and do if you win the Mega Millions jackpot

Whether you bought a ticket yourself or got some as a stocking stuffer, could that $1.15 billion Mega Millions jackpot have your name on it? The odds may be against you − like 1 in 302.6 million − but that doesn't mean you can't prepare.

If there is a winner, Mega Millions jackpot would be the fifth-largest jackpot in Mega Millions history, making the take-home prize a lump-sum payment of an estimated $516.1 million after taxes. How do you even begin to get ready for a windfall like that?

The "smartest thing" you can do, in the event that you do win, is keep calm and carry on, financial advisers shared with USA TODAY back in March. And avoid posting any and all details of your win on social media.

"If you’re lucky enough to win the lottery, keep it quiet," Rob Burnette, an Ohio-based financial adviser at Outlook Financial Center. "Get organized and make a plan. Consider staying anonymous, if it’s a possibility.”

Who, if anyone, do I tell about my Mega Millions win?

If you find yourself in a situation where you stand to inherit millions of dollars, the best people to get in touch with financial experts right off the bat so scammers don't get the chance to bleed you dry before you even get the chance to cash in.

"Crooks usually try to get you to wire money for 'taxes' or 'fees,' or may try to get you to provide them with a bank account number, which they will then clean out," Mega Millions said. "No real lottery tells winners to put up their own money in order to collect a prize they have already won."

No Mega Millions representative would ever call, text, or e-mail anyone about winning a prize so be especially wary of who contact you out of the blue. In certain states, you can remain anonymous if you win.

Steve Azoury, owner of Azoury Financial in Troy, Michigan, who has advised many lottery winners, including a $181 million winner "who said ‘If I didn’t know you before, I don’t want to know you now.’”

"Get a tax attorney and a tax accountant right off the bat and then a financial adviser,” according to Azoury. “They’ll work hand in hand to figure out the plan.”

The "plan" will help you get some things squared away, such as whether you will opt to take an immediate cash payout, or if you'd prefer the cash distributed over time.

The difference between the two is outlined below:

An annuity option makes an initial annual payment followed by 29 annual payments. Each payment is 5% larger than the previous one.

The cash option is a one-time, lump-sum payment equal to all the cash in the jackpot prize pool. At Tuesday's drawing, it's $413.5 million.

The decision, though, will likely depend on your goals, your age, and what lottery rules are for beneficiaries to continue receiving payments, or if you’d likely squander a lump sum. The size of the lottery winning as well as your current and projected earnings are some things to consider, according to Mark Steber, chief tax officer at Jackson Hewitt.

Get expert advice: How do I find a financial advisor? These top firms can help with financial planning.

Your financial expert, or experts can also help you find a "fall guy," a person or adviser "who keeps you from giving loans to anybody, who tells people all the money’s tied up in investments, not available," Azoury said. "We have nothing available to help you out, and we’re not interested in your project.”

How do I decide what to do with my Mega Millions win?
Only you and your financial adviser, or advisers can help you figure out the best way to protect you and your money.

Most people won't claim their prize right away, taking some time to figure out a plan that's right for them. Mega Millions claim periods, which ranges from 90 days to one year from the drawing date, varies from state to state.

"Winning tickets must be redeemed in the state in which they were purchased, but lotteries typically have a claim-by-mail option for most prize levels," Mega Millions said.

But it might be in your best interest to "park" the earnings until you are able to hire and meet with a financial adviser, tax accountant and attorney that's right for you.

"One suggestion would be putting your winnings in a brokerage account, as many brokerage firms can spread the cash deposits across multiple banks," according to Azoury. "Within one brokerage account, up to $4 million can be insured, if single, and up to $8 million can be insured on a joint account."

How much of my Mega Millions win will I take home? And when do I get it?
The exact amount you stand to net will vary, depending on the state you win the Mega Millions jackpot in. Lottery-related regulations and laws are different from state to state. While there is no hard and fast timeframe for the claimed prize to make its way to you, it shouldn't take more than a "couple of weeks," Azoury said.

You’ll likely be propelled into the highest federal tax bracket, if you win the lottery. The state where you live and the place where you bought the winning ticket can greatly impact what you pay in taxes and how many, if any other states you will have to file taxes in.

California is one a dozen states, including Alaska, Delaware, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, that does not tax lottery winnings.

“This is where a tax professional really comes in handy,” Steber says. “State taxes can be very tricky.

When is the next Mega Millions drawing? And how do I play?

The next drawing, where the winning numbers for the $1.15 billion jackpot will be determined, is Friday, Dec. 27 at 11 p.m. ET. Mega Millions drawings take place every Tuesday and Friday at 11 p.m. ET. Tickets are available up to 15 minutes before the drawing takes place.

In order to win the jackpot, you must match all six winning numbers in a drawing. That being said, players may pick up to six numbers from two separate number pools.

Five of the numbers will come from white balls whose numbers range between 1 to 70 and the last number will come from the gold Mega Ball whose numbers range between 1 and 25. Players may also select the "Easy Pick" or "Quick Pick" options, which will have the computer randomly generate six-number sequence.

The "Megaplier," a $1 add-on feature, that can increase non-jackpot prizes by 2, 3, 4 or 5 times. Before each regular Mega Millions drawing, the Megaplier is drawn. From a pool of 15 balls, six are marked with "3X," five are marked with "2X," three with "4X" and one with "5X."

Where can I buy lottery tickets?
Lottery tickets can be found and purchased from local convenience stores, gas stations, grocery stores or purchased online − in a handful of states. Some airport terminals may even sell lottery tickets, too.

You can also order tickets online through Jackpocket, the official digital lottery courier of the USA TODAY Network, in these U.S. states and territories: Arizona, Arkansas, Colorado, Idaho, Maine, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Puerto Rico, Texas, Washington, D.C., and West Virginia. The Jackpocket app allows you to pick your lottery game and numbers, place your order, see your ticket and collect your winnings all using your phone or home computer.

For more information see Medora Lee and Amaris Encinas "'Keep it quiet:' Here's what to know and do if you win the Mega Millions jackpot" Yahoo Finance, December 27, 2024. 

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

Corporate Transparency Act Preliminary Injunction BACK IN PLACE!

Yesterday, the Fifth Circuit vacated its stay order of December 23, 2024 resulting in the District Court's injunction still being in effect. Thus, the nationwide injunction preventing enforcement of the Corporate Transparency Act's requirement that nonexempt companies report the identity of their beneficial owners and applicants for incorporation remains in place.

Here is the key language from the court's order:

The merits panel now has the appeal, which remains expedited, and a briefing schedule will issue forthwith. However, in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED.

See Texas Top Cop Shop, Incorporated, et al v. Merrick Garland, US Attorney General, et al; No. 24-40792, in the United States Court of Appeals for the Fifth Circuit, ORDER filed December 26, 2024.

Corporate Transparency Act Preliminary Injunction PLACED ON HOLD

Earlier today, the 5th Circuit overturned the nationwide injunction on CTA reporting. Accordingly, entities formed before this year now have just one week to file their reports. 

You may read the entire opinion here.

Here is an excerpt from the opinion:

The Corporate Transparency Act (“CTA”) obliges certain nonexempt companies to report the identity of their beneficial owners and applicants for incorporation. 31 U.S.C. § 5336. On December 3, 2024—less than one month before the crucial January 1, 2025 reporting deadline—the district court granted Plaintiffs-Appellees’ (the “Businesses”) motion for a preliminary injunction and entered a nationwide injunction enjoining the CTA and the corresponding Reporting Rule. Id.; 31 C.F.R. § 1010.380. The district court concluded that both are unconstitutional and issued nationwide injunctions against each, despite no party requesting it do so and despite every other court to have considered this issue tailoring relief to the parties before it or denying relief altogether. . . .

When balancing this harm against the public’s urgent interest in combatting financial crime and protecting our country’s national security, equity favors a stay. As the government explains, and the district court recognizes, a last-minute nationwide preliminary injunction would undermine our ability to push other countries to reform their anti-money laundering and counterterrorism regimes and to address the most fundamental gap in our own regime.

Accordingly, the government has demonstrated that a stay is warranted. See Nken, 556 U.S. at 434.

IT IS ORDERED that the government’s emergency motion for a stay pending appeal is GRANTED. IT IS FURTHER ORDERED that this appeal is EXPEDITED to the next available oral argument panel.

Footnote 7 is also worth examining:

The Businesses warn that lifting the district court’s injunction days before the compliance deadline would place an undue burden on them. They fail to note, however, that they only filed suit in May 2024 and the district court’s preliminary injunction has only been in place for less than three weeks as compared to the nearly four years that the Businesses have had to prepare since Congress enacted the CTA, as well as the year since FinCEN announced the reporting deadline.

Here is an excerpt from a FinCen memo:

Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)

UnitedHealthcare CEO murder suspect Luigi Mangione's grandma left millions to family — excluding felons

The grandmother of Luigi Mangione, the suspect charged in UnitedHealthcare CEO Brian Thompson's Dec. 4 murder, left a fortune to her children and grandchildren — as long as the descendant has not "been charged, indicted, convicted of or pleads guilty to a felony," according to her will.

Mary Mangione, a Baltimore-area millionaire philanthropist married to real-estate developer Nick Mangione, left an estimated $30 million — and possibly more — to her family when she died in 2023. The matriarch had 10 children and 37 grandchildren.

"It is my precatory desire that the Trustees particularly consider invoking their discretion to implement this Section if the felony is a common law felony, a statutory felony if it is the codification of a common law felony, a heinous felony, any felony involving a physically violent act against another person or property or any drug related felony involving distribution or intent to distribute any type of drug or illegal substance," the will states. "The decision of the Trustees is conclusive, final and binding on everyone. It is my precatory wish that the benefit of the doubt is not given to the individual."

 

In New York, Mangione faces one count of murder, two counts of second-degree criminal weapons possession, one count of second-degree possession of a forged document and one count of third-degree criminal weapons possession.

In Pennsylvania, he faces one count of forgery, one count of carrying a firearm without a license, one count of tampering with records or identification, one count of possession of instruments of a crime and one count of presenting false ID to law enforcement, according to court documents.

For more information see Audrey Conklin "UnitedHealthcare CEO murder suspect Luigi Mangione's grandma left millions to family — excluding felons" Fox News, December 13, 2024. 

Financial Crimes Enforcement Network issues Beneficial Ownership Information statement

Below is the FinCEN statement after the nationwide preliminary injunction that  enjoins the CTA including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements:

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

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The Corporate Transparency Act (CTA) plays a vital role in protecting the U.S. and international financial systems, as well as people across the country, from illicit finance threats like terrorist financing, drug trafficking, and money laundering.  The CTA levels the playing field for tens of millions of law-abiding small businesses across the United States and makes it harder for bad actors to exploit loopholes in order to gain an unfair advantage.

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), a federal district court in the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction that: (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and, specifically, (2) stays all deadlines to comply with the CTA’s reporting requirements. The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024.

Texas Top Cop Shop is only one of several cases in which plaintiffs have challenged the CTA that are pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional.

While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports.

Rupert Murdoch Loses Bid To Hand Control Of Media Empire To Eldest Son

A probate commissioner has ruled against Rupert Murdoch’s effort to change his family’s trust to give one of his sons control of his media empire and ensure Fox News maintains its conservative editorial slant, according to a sealed document obtained by The New York Times.

In a decision filed on Saturday, a probate commissioner in Nevada concluded that Murdoch, 93, and his son, Lachlan Murdoch, had acted in “bad faith” in their endeavor to amend the irrevocable trust, The New York Times reported on Monday.

The trust divides control of the company equally among four of Rupert Murdoch’s children — Prudence, Elisabeth, Lachlan and James — after he dies. Lachlan Murdoch has been the head of Fox News and News Corp since late last year, when his father stepped down.

The elder Murdoch has argued that to preserve his businesses’ commercial value for all his heirs, the trust must be changed to allow Lachlan Murdoch to maintain Fox News’ conservative bent. James and Elisabeth Murdoch are both known to have less-conservative political views than their father or brother, potentially complicating efforts to ensure that Fox News remains conservative.

In his 96-page opinion, Nevada Probate Commissioner Edmund J. Gorman Jr. of the Second Judicial District Court characterized the plan to change the trust as a “carefully crafted charade” to “permanently cement Lachlan Murdoch’s executive roles” inside the empire “regardless of the impacts such control would have over the companies or the beneficiaries” of the family trust.

Adam Streisand, a lawyer for Rupert Murdoch, told the newspaper that his client and his client’s son were disappointed with the ruling and intended to appeal.

A spokesperson for Prudence, Elisabeth and James Murdoch said in an emailed statement to The Associated Press that they welcome the ruling and hope that their family can “move beyond this litigation to focus on strengthening and rebuilding relationships among all family members.”

Gorman in his conclusion said: “The effort was an attempt to stack the deck in Lachlan Murdoch’s favor after Rupert Murdoch’s passing so that his succession would be immutable. The play might have worked; but an evidentiary hearing, like a showdown in a game of poker, is where gamesmanship collides with the facts and at its conclusion, all the bluffs are called and the cards lie face up.”

For more information see "Rupert Murdoch Loses Bid To Hand Control Of Media Empire To Eldest Son" Huffington Post, December 10, 2024. 

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

‘Treated me like an insignificant cockroach’: JPMorgan Chase denies NY widow her husband’s $53K pension pot

Elaine Silverberg, a 73-year-old widow, has been fighting JPMorgan Chase for 13 years over their refusal to pay her late husband's estimated $331 monthly pension.

When her husband Melvyn Silverberg passed away suddenly in 1988 at age 43 from multiple organ failure, Elaine was just 37 and left to raise three children on her own. The largest bank in country, which reported $12.9 billion in profits last quarter, has denied her the pension claiming she lacks "necessary documentation."

Now after sitting untouched for more than 35 years, the unpaid amount has grown to $53,000, according to the New York Post report.

“You would think the bank would want to do the right thing. They have treated me like an insignificant cockroach just to be stepped on,” she told the outlet. "If Jamie Dimon were aware of this, he would wish to do the right thing and honor the pension."

JPMorgan Chase remains firm in their stance. “While we sympathize with Mrs. Silverberg, she is asking us to pay without necessary documentation,” a spokesperson said to the New York Post “We follow the terms of our pension plan that would not permit individual exceptions.”

But does the bank have the right to withhold her husband's pension? Here's what you need to know to avoid facing a similar battle.

For more information see Victoria Vesovski, "‘Treated me like an insignificant cockroach’: JPMorgan Chase denies NY widow her husband’s $53K pension pot" Yahoo Finance, November 8, 2024. 

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