Wills, Trusts & Estates Prof Blog

Michael Jackson’s Mom, 92, Paid $1 Million Allowance By Pop Star's Estate, Daughter Paris Scores $750k For Home Construction

Two executors have run Michael Jackson's Estate since the popstar died in 2009, with his three children, Prince, Paris, and Blanket listed as beneficiaries. Before Jackson's death, a provision was added to ensure Michael's mother, Katherine, was cared for for the rest of her life.

Executors John Branca and John McClain have been credited for saving Jackson's Estate from the verge of collapse. The singer was more than $400 million in debt when they were first hired. However, through creativity and business savvy, and Jackson's extraordinary creative legacy, they were able to transform MJJ Business into a profitable enterprise and have generated substantial revenues to enhance the image and legacy of Michael Jackson.

As of December 31, 2022, the Estate has generated gross earnings exceeding two billion dollars. In 2019, the Estate generated $70 million and had over $700 million in assets. Other listed property includes several luxury automobiles, various properties, and interest in multiple businesses, stocks & bonds, and personal property. 

Many payments made to the family in a recent accounting report appear to be related to party expenses. Expenses include DJ services, ballon designs, photobooks, cakes, and catering, including $6,000 to the famous Pink’s Hotdogs. Other expenses include $750,000 for the construction of Pari Jackson’s home.

For more information see Ryan Naumann “Michael Jackson’s Mom, 92, Paid $1 Million Allowance By Pop Star’s Estate, Daughter Paris Scores $750k For Home Construction” Radar Online, May 3, 2023.

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

What Could Go Wrong? Choosing the Best Drivers for the Estate-Planning Bus

Jay E. Harker (Stifel Trust Company, N.A.) recently published an article, What Could Go Wrong? Choosing the Best Drivers for the Estate-Planning Bus, ABA Probate & Property Magazine, May/June 2023. Provided below is an introduction to the article:

Estate planning is essential for people who have accumulated meaningful wealth or face challenging family circumstances. Like math, estate planning can be hard, especially so when clients need to decide who should drive their estate-planning bus. Disaster can ensue if this decision is taken lightly. Often, discussions of this topic focus on the relative merits of individual trustees versus corporate trustees. This article reframes the discussion by focusing on selection methodology, rather than type of trustee. Lawyers can help clients avoid estate-planning disasters by encouraging them to make better trustee-selection decisions.

Consider These Trusts in a Rising Rate Environment

Two options offer potential benefits in a higher-rate environment as interest rates rise: Qualified Personal Residence Trusts and Charitable Remainder Trusts.

A Qualified Personal Residence Trust (QPRT) allows future gifts of homes (or vacation homes) by transferring ownership to the trust while retaining the right to live there for a specified number of years. 

A Charitable Remainder Trust (CRT) allows assets to be donated to charity and draw annual income for life or a specific period of time. The return of funds can be in the form of an annuity or unitrust and can be funded with almost any property that can be properly valued. 

For more information see “Consider These Trusts in a Rising Rate Environment” Glenmede, May 1, 2023.

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

Vermont allows out-of-staters to use assisted suicide law

Last week, Vermont became the first state in the United States to change its residency requirements for the medically assisted suicide law to allow people out of state to utilize it and receive lethal medication. 

Last year, Oregon agreed to stop enforcing residency requirements and agreed to ask the Legislature to remove the residency requirement from the law in a court settlement. However, Vermont became the first to do so after settling with a Connecticut woman with terminal cancer. 

Proponents of medically assisted suicide applaud Vermont for the move. “We are grateful to Vermont lawmakers for recognizing that a state border should not determine if you die peacefully or in agony,” said Kim Callinan, president, and CEO of Compassion & Choices. However, critics worry that this puts states at risk of becoming suicide tourism destinations.

Anyone wishing to utilize medically assisted suicide must adhere to the safeguards in place, including the requirement to communicate their healthcare decision to a physician in two requests: orally and written, which must be signed in the presence of two or more witnesses who are not interested parties. 

For more information see Lisa Rathke “Vermont allows out-of-staters to use assisted suicide law” AP News, May 2, 2023.

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

Aaron Carter's Cause of Death Revealed

Aaron Carter was found dead in his home last November. The singer’s cause of death is now being publicly shared. The primary cause of death is listed as drowning by the Los Angeles Medical Examiner, which is the result of taking alprazolam, a generic form of Xanax, and inhaling difluoromethane.

It was reported that Carter was advised by his attorney to make a will upon the birth of his son Prince, whom he shares with his ex-girlfriend, Melanie Martin. Carter was looking to resolve his custody battle with Martin. Instead, his entire estate passed to the now one-year-old Prince.

For more information see Tionah Lee “Aaron Carter’s Cause of Death Revealed” Aol. News, April 18, 2023.

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

This 100-year-old Ohio man is the world’s oldest practicing doctor — and says retirement is ‘the enemy' of longevity. Here are his 3 top tips to live a long and happy life

Dr. Howard Tucker of Cleveland, Ohio, says meaningful work is the secret to longevity. Tucker was born in 1922 and received his medical degree from The Ohio State University in 1947. He practiced neurology for 75 years, earning the Guinness Book of World Records title for World’s Oldest Practicing Physician.

While Tucker admits “good genes and a bit of luck” have helped extend his life, he belays a few key elements have boosted his health and happiness. One major piece of advice is to learn something new every day. Tucker went to law school at night while maintaining his medical practice in his 60s and passed the Ohio Bar Exam at age 67.

Another factor is maintaining a healthy diet, not smoking, and consuming alcohol in moderation. The centenarian loves to swim, jog, hike, and maintain an active lifestyle, although he is not as active as he once was.

However, his most significant and controversial advice is to work as long as possible, as he considers retirement the enemy of longevity. Having a job he loves made waking up daily and having fun staying alive easier. While some jobs may be too demanding to work into old age, Tucker advises anyone to find a hobby to stimulate the brain daily.

For more information see Bethan Moorcraft “This 100-year-old Ohio man is the world’s oldest practicing doctor— and says retirement is ‘the enemy’ of longevity. Here are his 3 top tips to live a long and happy life” Yahoo! Finance, April 29, 2023.

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

When Friends Are Your Primary Concern in Making a Will

As marriage rates in younger generations dwindle, many are left with a unique problem that has yet to be deeply considered in the legal community: leaving everything to friends. Many people have built meaningful friendships that become so-called “chosen family”; however, intestate succession laws do not consider nonrelatives.

Reid Weisbord, a professor at Rutgers Law School, is quoted in the article. Mr. Weisbord said people rarely considered estate-planning challenges like mine. “Our society can be biased against people who don’t have children or are not married,” he said.

Another major factor to consider for a single, childless person is planning for incapacity. Naming someone as executor of an estate is a big ask, and naming someone to make medical decisions on your behalf is even more significant.

For more information see Sara Murphy “When Friends Are Your Primary Concern in Making a Will” The New York Times, April 29, 2023.

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

Article: Inheritance Law

Marcelo Ortiz M. (Universitat Pompeu Fabra: Barcelona Graduate School of Economics; Barcelona School of Management) recently published a paper, Inheritance Law, Elgar Encyclopedia of Family Business, Cheltenham, UK, Edward Elgar Publishing, 2023. Provided below is an abstract to the Paper:

Inheritance law is a family-oriented legal institution shaping how families transfer wealth across generations. This review discusses the main components of inheritance law (inheritance tax rate, and testamentary freedom), and how they impact business families. It also explores common strategies used by business families to mitigate the effects of inheritance law, such as family trusts and corporate ownership transactions. Finally, this review discusses the evidence of the effects of inheritance laws on business families and their impact on social inequality. Overall, this review provides a comprehensive overview of inheritance law and its implications for business families.

Lubbock Veteran’s remains blast off to space

U.S. Air Force Veteran Dr. John “Randy” Darby passed away in 2018. A portion of his cremated remains were placed in a flight capsule aboard a spacecraft where his ashes were sent into space, along with 120 other passengers out of California’s Vandenberg Space Force Base mission designed by Celestis, Inc. The spacecraft will remain in orbit for a few years before reentering and burning up like a shooting star. 

Celestis Inc. specializes in planning Memorial Spaceflights, which offers a unique way to celebrate and remember loved ones with the mission of advancing the human condition on Earth and in space. Missions are designed to ensure no orbital debris or adverse environmental effects occur in space or on planet Earth. Celestis spaceflights are regulated by the Federal Aviation Administration’s Office of Commercial Space Transportation.

Dr. Darby loved space and rockets in his childhood and was able to combine his passion for space and medicine when he served as chief of flight medicine at the Reese Air Force Base in the 1980s. His wife said sending his remains into space is a lifelong dream fulfilled.

For more information see Jaxie Pidgeon “Lubbock Veteran’s remains blast off to space” Everything Lubbock, April 19, 2023.

Book Review: Robert's Story: A Texas Cowboy's Troubled Life and Horrifying Death

 I've just finished reading Robert's Story: A Texas Cowboy's Troubled Life and Horrifying Death by Stephen G. Michaud. Here is my review of this book which even references my earlier blog postings about Robert's situation:

Apparently, Robert East was not the easiest person to love. Sure he was a bit cowboy rough around the edges but he did not deserve to be treated and left to die in such a callous and painful manner.  His Texas family’s personal legacy was destroyed by those who systematically and thoughtfully obtained control of Robert’s wealth when Robert became ill.

This riveting true tale lays out the destruction of not just one cowboy but a way of life.  The author, Stephen Michaud, does an excellent job of sifting through the many years of Robert’s personal life and hurt, Robert’s back stabbing betrayal by those he trusted, and the offensive over-reaching legal system, all backed by evidence, to take the reader on a journey of disbelief, heartache, and the knowledge that it could happen to anyone of us. The establishment of the well known and highly respected East Foundation resulted from the orchestrated evil-doings of many people but does the end justify the means?