For that matter, what happens to the rest of your electronic property? The recent proliferation of social media accounts, to say nothing of traditional e-mail accounts, raises questions about whether people should make provisions in their estate plan for dealing with various online accounts after their death. The government has recently weighed in on the issue, advising people to create a will that names someone to wrap up the decedent's accounts.
]]> A so-called "social media will" could have many benefits. It would include all relevant passwords to online accounts. Perhaps a person had particularly important information stored in one account or another. The will could contain instructions on saving and passing that information on to particular parties. Or it could mandate deletion of the accounts. Like a normal will, the aim would be to fulfill the testator's wishes.But testators drawing up a will that includes information on their various online accounts may want to be careful. Probated wills can be viewed by the broader public, so passwords and other instructions might be better off conveyed through another estate planning mechanism, such as a trust, said one law professor. Estate plans should be comprehensive, so people should consider whether they want to include their online accounts in theirs.
Source: The Atlantic, "The Government Would Like You to Write a 'Social Media Will'," Rebecca J. Rosen, May 3, 2012.
]]>According to the complaint, the picture in question shows Bogart's character Rick Blaine wearing a Burberry trench coat in the closing scene of the classic film Casablanca. Burberry had placed the photo in a retrospective timeline of the development and effect of the brand. Bogart Corp.'s suit requests that Burberry pay damages and be precluded from using the actor's image.
]]> But the clothes manufacturer has also sued Bogart Corp. That complaint argues that Bogart Corp. does not have the trademark rights to the photo. Instead, Burberry asserts, it received license to use the picture from Corbis, a well-known photo company. Burberry also claims First Amendment rights in defense of its use of the Bogart picture.The case of the Casablanca photo highlights that an estate can include more than just a piece of real estate and other traditional assets such as stocks, bank accounts and investments. Although a small percentage of the population becomes stars of stage and screen, a larger proportion may have intellectual property or trademark rights. Proper estate planning can help protect those potentially valuable items for the benefit of heirs and beneficiaries.
Source: Los Angeles Times, "Bogart heirs and Burberry at odds over trench coat image," May 4, 2012.
]]>The estate of actor Gary Coleman is currently the subject of a will contest, as two women have taken their case to court to determine the distribution of Coleman's assets. The case centers around two wills Coleman executed and a later handwritten modification to the second will. The actor drew up the first will in 1999 and the second in 2005. The 2005 will left his estate to the woman who ran his business.
]]> But Coleman also married in 2005. The second will apparently did not mention his new wife, so in 2007 Coleman amended his will to give his entire estate to his wife. The couple divorced during the following year, but, according to some friends, continued to live together in a happy relationship until the actor died in 2010. Others, however, say that the relationship was not happy after the divorce.The status of the couple's post-divorce relationship is important to the will contest because a resolution of the case could hinge upon whether a common-law marriage existed between Coleman and his wife after the divorce. The existence of common-law marriage varies from state to state, but Coleman's home state is one of a few that still recognize it. The court case is being conducted as a bench trial, which means that there is no jury. Instead, the judge will make the decision after hearing testimony about the couple's relationship.
The formalities of will execution also vary from state to state. It is important to observe these formalities so that one's estate plans can withstand any potential challenges that may arise after death.
Source: Reuters, "Utah judge to decide fate of child TV star Gary Coleman's estate," Jennifer Dobner, May 9, 2012.
]]>Kinkade separated from his wife two years ago. Six months later, he began dating another woman, who gradually became acquainted with the "trade secrets" of the artist's painting business, in particular the ways in which it applied computer programs to painting. She became so knowledgeable that she was required to sign a confidentiality agreement in February of last year.
]]> According to reports, however, Kinkade's family, friends and his driver became concerned that the artist's girlfriend might violate the confidentiality agreement. Windermere Holdings, which was Kinkade's company, alleged in the court papers related to the restraining order that the woman had already contravened the agreement by speaking to the media after Kinkade's death this April when, the company said, she suggested that she would disclose information about Kinkade and his painting.Windermere Holdings is currently the executor and trustee of the Kinkade Family Trust. Trustees have a variety of important responsibilities, including protecting trust assets for the beneficiaries. It is not known what assets reside in the Kinkade Family Trust, but if the trustee believes that a revelation of business secrets could harm the trust, it will seek legal means to prevent it.
Passing on and protecting a business can be a difficult task. But there are estate planning mechanisms that can be used to achieve these goals.
Source: San Jose Mercury News, "Artist Thomas Kinkade's girlfriend accused of being gold-digger out for 'money and fame,'" Julia Prodis Sulek, April 24, 2012.
]]>The estate of Philip K. Dick is currently locked in one such lawsuit as it tries to recover what it believes to be its rightful share of the profits from the movie The Adjustment Bureau. Some readers may be familiar with Philip Dick's work. He was a novelist and writer whose stories have provided the plots to a number of Hollywood films, including The Adjustment Bureau.
]]> According to the lawsuit, the estate received $1.4 million in exchange for the rights to the story, but has not received additional contractually negotiated payments that were supposed to be made once the film became profitable. The lawsuit was filed by the trustee of the Philip K. Dick Trust, which was designated as the recipient of those additional payments.The plaintiffs have stated that Media Rights Capital, one of the other parties to the contract, has failed to produce accounting records that would demonstrate the film's profitability. They have also claimed that Media Rights Capital has intimated that it would seek to take back payments it had already made.
The future profitability of an estate can be helpful to heirs, charities and other beneficiaries. For those who anticipate that their estate may receive income after their death, it is important to consider an estate plan that will allow someone, such as a trustee, to pursue potential income as well as defend the estate from potential claims against it.
Source: Chicago Tribune, "New suit filed over 'Adjustment Bureau': Philip K. Dick estate sues Media Rights Capital over profit allocation," Ted Johnson, April 24, 2012.
]]>Winehouse had a sizeable estate go through the probate process. The initial estate was worth $6.7 million, but after creditors and the taxman received their share, that amount was reduced to $4.6 million. That does not rule out the possibility that she had other, more substantial, assets that passed to others without going through probate.
]]> The most noticeable feature of Winehouse's estate plan, however, was that she didn't have one. She died without creating a will, even though some sources reported that she had one in place. When people die without a will, portions of their estate pass according to established laws. Those laws attempt to follow how people would generally want their property distributed. But by being broad and general, those laws invariably fail to capture the exact details of what people would have done if they had sat down and created an estate plan tailored to their individual desires.Under the laws applicable to Winehouse's estate, her parents inherited all of her assets. While not a bad result, Winehouse may have wanted to spread her wealth among a wider selection of people.
There are also other benefits to engaging in thoughtful estate planning. For example, a person can pass more of the estate on to heirs, friends and organizations by paying less in taxes.
Source: Forbes, "Amy Winehouse Didn't Have a Will After All, But Did Have Millions," Danielle Mayoras and Andy Mayoras, March 28, 2012.
]]>It appears that Astor executed a number of wills and amended them from time to time. While this is certainly not uncommon, in some cases it can complicate the issue of which will has priority and best embodies the testator's wishes. Astor's son and the charities believed that different wills were the final legal statement regarding the disposition of her property. The settlement appears to have been struck using a will that Astor executed in 2002, while disregarding various codicils.
]]> There was one additional wrinkle complicating this probate dispute, however. Astor's son was charged and later convicted of helping to alter his mother's will in his favor. Astor was suffering from dementia at the time. Claims of undue influence in probate proceedings are also not uncommon and they can determine how a particular will is viewed in probate court.Under the terms of the settlement, Astor's son will still inherit a sizeable sum: nearly $15 million. But he had stood to gain almost $27 million. The charities, which were represented by the state attorney general's office, include various libraries, cultural organizations, parks and schools. They will receive approximately $100 million from Astor's estate.
Source: Associated Press, "NY fight over Astor's estate ends; millions freed," Jim Fitzgerald, March 28, 2012.
]]>Charles engaged in detailed estate planning and, shortly before his death, explicitly informed his children of his wishes. According to the lawsuit, he told them that the majority of his estate would be given to people with disabilities. His songs, along with their copyrights and royalties, would belong to The Ray Charles Foundation, which would be responsible for disbursing funds to help those with disabilities.
]]> But he was also generous to his 12 children. To each of them he gave $500,000, held in an irrevocable trust. The lawsuit states that each of the children agreed in writing that they would receive nothing more and in exchange for the trusts, would not attempt to take anything more. But seven of the children allegedly have prevented The Ray Charles Foundation from receiving copyrights to 51 songs, permitting themselves to capture the royalties instead.The foundation filed a lawsuit to allow it to receive the song copyrights and the money generated by them. The primary purpose of an estate plan is to effectuate the intent of the person who created it. While the best-drafted estate plans cannot necessarily ensure that people dissatisfied with their share will not challenge them, they can confront potential challenges and fulfill the creator's intent.
Source: Courthouse News Service, "Ray Charles Foundation Sues Seven of His Kids," Dan McCue, Apr. 2, 2012.
]]>In cases where a person is already incapacitated due to injury or illness, concerned family members can seek to create a conservatorship. Under such an arrangement, the conservator has the power to make decisions for the incapacitated person on such matters as finances and health care. A conservator can guard against those who may try to take advantage of the incapacitated person's assets. Naming a conservator can be a complicated process, which requires the approval of a judge.
]]> While conservatorships can be necessary in some cases, there are other ways to achieve similar benefits without going to court. A person can engage in proactive planning by creating a number of documents that would cede decision-making authority to a trusted person in the event of incapacitation. One is a durable power of attorney. There are two principal types, one for health care and one for financial affairs.Another document is an advance health care directive, sometimes called a living will. Through this document, a person can specify if he or she wants certain medical care withheld.
Matters can become complicated when a person exhibits moments of dementia interspersed with intervals of clarity. To ensure the validity of a durable power of attorney or an advance health care directive, it is important to show that the person signing them clearly understands their purpose and effect.
Source: Los Angeles Times, "Health 411: Aging mom may have dementia, and family doesn't know what to do," Lisa Zamosky, Mar. 13, 2012.
]]>While estate administration certainly includes traditional, tangible pieces of property, state legislatures are increasingly looking into what should be included in a deceased person's "digital estate." One state has already passed a law that would give family members and friends the ability to access a deceased person's Facebook account, as well as other personal digital records, such as an email account.
]]> The new legislation comes in response to relatives who want to remember and feel a closer connection with a family member who has died. The man who authored the state's digital estate legislation drew a parallel between the information in a Facebook account and the palpable objects a person may leave behind, such as photographs and journals. He wanted personal effects to be treated equally, regardless of whether they existed on the internet or in a box.These new laws should raise everyone's consciousness about what exactly gets included in a person's estate. When creating an estate plan or a will, people decide which piece of property will go to whom. But it is doubtful that many people consider giving control over their blog, digital photography collection or Facebook account to someone. But the new legislation may provide the impetus to give that some thought.
Source: The Washington Post, "Is Facebook part of your estate? States weigh laws to govern social media accounts after death," Mar. 15, 2012.
]]>Before he died, the iron baron created a trust for his descendants. Last fall, his grandchildren were supposed to receive their shares of the trust, but their mother intervened and requested that they agree to postpone taking their shares until 2068. One child consented, but three others refused and initiated estate litigation to gain access to the trust.
]]> The mother's motivation was ostensibly to protect the children from incurring taxes on their shares of the trust. But she also appears skeptical of the children's ability to become effective trustees, citing their lack of applicable skill. For their part, the children have asserted that they would face bankruptcy if they were deprived of their trust shares.Although the dollar totals involved are uncommon, the issues confronting this family can happen to anyone. Whether large or small, it is important to consider how one's estate will be passed on. Who gets what is often a primary consideration, but sometimes when someone gets it is just as vital. Trusts can be an effective tool to ensure that a person receives an inheritance after a specified period of time. As with any estate document, clarity in a trust's language is essential so that the creator's intent is observed.
Source: The Wall Street Journal, "Australia's Rineharts Battle Over Family Trust," Ross Kelly, Mar. 12, 2012.
]]>Many people across California have very unique and valuable collections that have a tremendous amount of emotional and monetary value. There are instances of people that have included homes packed with collectable items in their wills, but their family is left with thousands of dollars in valuable collections to sort through. By including appraised collectibles in an estate plan, that kind of trouble can be minimized.
]]> One issue that can arise when appraising collectibles is that the value is not as easily determined as financial assets. However, getting an appraisal and including that information in an estate plan leaves fewer questions during the estate administration and probate process, regardless of what the beneficiaries of a collection intend to do with the items.Another aspect of including collection in estate planning to consider is what exactly can be done with the items. Individuals can choose to sell the items themselves, pass the collection on to a loved one or consider a donating the valuables to a museum. All have their own unique set of benefits, but people must decide what is best for them.
Planning your estate is about so much more than dividing assets or other valued possessions: It's about your legacy. No matter what you decide to do with your collection of marbles, antique cars or award-winning orchids, knowing that that your valuables will make it into the right hands when you pass away is worth the peace of mind.
Source: The New York Times, "Making Plans for Prized Collections, Heartstrings Included," Paul Sullivan, Feb. 24, 2012
]]>In the mid-17th century, a man provided in his will that his seaside property should be used to support a public school in the area. A trust was created to manage the property, which received income from people who rented summer homes built on the land. In particular, the man's will stated that the land must not be sold.
]]> Over time, however, people accused the trustees of failing to collect rent, renting the properties to themselves at below market value and other acts of trust mismanagement. When the trustees attempted to raise rents, the tenants refused. When the trustees threatened eviction, the tenants sued.The sides have reached a potential settlement in the dispute, which would build condominiums on the land and sell them outright to the tenants. According to supporters of the settlement, the proceeds would be managed by a new trust, which would better benefit the school district.
Opponents argue that the settlement ignores the intent of the man who created the trust by selling the property and denying the school district future income from the land. Moreover, they argue that the sale price negotiated in the settlement is well below fair market value.
The aim of an estate plan is to administer one's property and affairs with as little dispute as possible. But disputes do arise, especially if the trust spans centuries. Whether trustees are not performing their duty or the intent of the trust's creator is threatened, an experienced estate litigation attorney can help ensure that the matter is settled according to the law.
Source: Ventura County Star, "351-year-old will sparks bitter dispute in Mass.," Feb. 27, 2012.
]]>Southern California residents of a certain age will remember the actor Peter Falk. He had a lengthy and distinguished career in the acting business. But he arguably earned his greatest reputation on the show Columbo, which was set here in Los Angeles. He died last year at the age of 83.
]]> In his will he left $3 million to the University of California, Los Angeles. The donation will be used to fund scholarships for disabled students, those who have served in the military and undergraduates pursuing studies in music. The scholarship, which is named the Shera and Peter Falk Lt. Columbo Memorial Scholarship Fund, will begin by paying for all four years of tuition for five students matriculating at UCLA this fall.There are many reasons to consider including a school or charity in your will. Fond memories of years spent at an alma mater, promising work done by an organization, or simply a devoted sense of generosity can provide the motivation to make such a bequest. An estate planning attorney can ensure that your property is divided according to your wishes, whether that includes giving to a university or not.
Source: The Washington Post, "Former 'Columbo' star Peter Falk bequeaths $3 million to UCLA to provide student scholarships," Feb. 21, 2012.
]]>In addition to her long music career, Houston also starred in a handful of notable films. She made millions from the movies, including an estimated $10 million from 1996's "The Preacher's Wife." She also signed a $100 million record contract in 2001. Experts estimate that her death will boost sales of her music, in the way, though to a lesser extent, that Michael Jackson's death brought in millions of dollars to his estate. Merchants have already seen a spike in purchases of her albums and songs.
]]> Reports indicate that Houston's 18-year-old daughter will be the primary beneficiary of her mother's estate. Houston died with a will, but its details have not been made public, and it is unknown if Houston had used other tools, such as a trust, in her estate plan. She may have wanted to pass her wealth on to her daughter through a trust because she could have controlled how much money her daughter received at a time. If she had a life insurance policy, she could also have designated the trust as the policy's beneficiary instead of having the proceeds go directly to her daughter.Trusts have many other benefits besides ensuring that a potentially financially inexperienced beneficiary does not get all the money at once. Trusts can also protect assets, reduce taxes and avoid the expense of probate.
Source: ABCNews.com, "Whitney Houston's Estate Expected to Get Boost After Death, But Less Than Michael Jackson," Susanna Kim, Feb. 14, 2012.
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