The soldier's estate is suing the federal government for allowing the man--who was suffering from a number of significant emotional issues and physical disabilities--a three-day pass from a Veteran's Hospital into town. They are seeking $2 million, claiming the deceased soldier never should have been given the pass because he was unfit to be alone. The man had scored 30 out of 100 on a test called the Global Assessment of Functioning, which measures someone's psychological, social and occupational fitness. The man's estate believes this score documents that he required inpatient care.
]]> The 32-year-old Afghanistan war veteran was diagnosed with Post-Traumatic Stress Disorder. He was also prescribed 19 drugs prior to his death including Melatonin and Oxycodone. The man was issued the pass and given instructions relating to his medications.He later checked into a hotel and went to eat at an Applebee's restaurant. A manager packaged his food up and walked him back to his hotel after he fell asleep at the counter. The soldier tried to open his door but passed out. A medical examiner later stated the man's death was caused by an overdose of his medication and asphyxiation, attributable to the manner in which he fell. The Army investigated the death and concluded he should not have been allowed to leave the facility.
The man's estate has tried to sue before but each time the suit was rejected due to the Feres Doctrine, which prevents military members from suing the government for injuries sustained while serving. Strong estate administration in this case has led those who care about his treatment to attempt to recover damages from the government for its alleged neglect of their loved one. Whether they will be successful is unknown, but it highlights the need for New Jersey residents to be especially mindful of whom they appoint as executors in their estate plans.
Source: The Oregonian, "Estate of soldier sues over his death while under the care of Roseburg VA," Mike Francis, May 9, 2012.
]]>After his death, it came to light that he was living with his personal assistant, who also happened to be his girlfriend. The woman spoke to the press after he passed away and stated that not only had she been dating him for 18 months, he and his wife of 30 years had separated. She also stated that Kinkade had a heart condition and passed away in his sleep.
]]> Her comments to the media sparked a firestorm of controversy from Kinkade's family who claim that once the woman spoke to the press about his health, she violated a confidentiality agreement previously signed. They also claim the woman had threatened to divulge confidential information about Kinkade's business and his family. They have requested a restraining order that would prevent her from speaking publicly about Kinkade.The family further claims that once Kinkade passed away, the woman claimed she would reveal trade secrets and release personal and private information about him and the rest of his family. She also allegedly stated she was in possession of photographs, memorabilia and other papers and would release those to the public as well. The family has obtained a statement made by Kinkade's body guard that stated if the woman released the information she held, it would detrimentally affect his family and his business.
The family seeks to protect Kinkade's legacy from the woman who they believe also has knowledge of Kinkade's painting techniques and how he used computer technology in his work. The restraining order has been approved but not served because the woman and Kinkade's family are attempting to privately solve the matter. This matter underscores how important legacy protection and estate planning is for New Jersey residents, especially if they are involved in a business where trade secrets are involved.
Source: ABC News, "Thomas Kinkade's Death Sparks Feud Over Family, Art Secrets," Colleen Curry, April 30, 2012
]]>After receiving permission from Tupac's estate to go ahead with the hologram performance, Dr. Dre paid for the permission by making a donation to the Tupac Amaru Shakur Foundation. He has expressed interest in seeing the Coachella event spark a trend in holographic celebrity performances. The estates of celebrities have the potential to reap large profits off of the use of these holograms, and based on the excitement generated by Tupac's appearance, the idea is sure to quickly gain momentum.
]]> Given the high potential for profit, we may see celebrities who left behind debt soon brought back to life in holographic performances. Those whose estates are administered by professionals, rather than family members, may also jump on this new trend. In such cases, it could present difficult situations if family members don't want to see a deceased relative resurrected in this manner.Although some consider the holograms a pale imitation of the real artist, fans of the fallen idols will likely pay to see these performers again. Plus, as long as permission is gained by the estate executor, it all appears to be legal.
Source: Forbes, "What Does Tupac's Hologram Mean For Other Celebrity Estates?" Danielle and Andy Mayoras, April 23, 2012
]]>For those deemed unable to make decisions or care for themselves, establishing a power of attorney can allow someone trusted to make necessary decisions, whereas a conservator may be a stranger or organization appointed by the courts. When estate planning, considering any health limitations in advance can help avoid the possibility of being taken advantage of under a court-appointed conservatorship.
]]> One woman's story encourages caution about conservators. A petition was filed in court by her two grandsons seeking conservatorship over her and she was unaware of the petition until it was too late. The woman, once living in a home she owned surrounded by her possessions, is now living in public housing -- her possessions sold off at auction. The woman was ultimately assigned the Greater Nashville Regional Council as her conservator, and the organization decided that selling her home and possessions was in the estate's best interests. The woman's car and a lifetime worth of possessions were sold for slightly over $2,600.The woman eventually proved she was mentally capable of making her own decisions and filed a $1.6 million lawsuit because of everything she had experienced. Her story shows how being under control of the courts can overturn an individual's decision and wishes, as well as how quickly someone's life can be altered for the worse. New Jersey residents can heed this story as a cautionary tale. Planning early and considering implementing powers of attorney for trusted family members or friends can help avoid situations like these.
Source: The Tennessean, "Conservatorship is meant to protect, but in Tennessee, it sometimes destroys," Walter F. Roche, April 15, 2012
]]>When considering estate planning, think about what you currently spend on your pet, factor in inflation, and add a cushion for expected future medical issues. There are three important people to choose when going over estate planning for one's pet. Determining the person with whom your animal will reside is referred to as the caregiver or guardian. Figuring out who you will entrust to oversee and spend money for your pet's well-being is essentially the trustee. And finally, you'll need someone to look after the pet's health and general welfare. Often this is a veterinarian.
]]> Determining the ideal caregiver for a pet while engaged in estate planning is similar to choosing a guardian for a child. Search for a person who has a genuine interest in your pet and its needs. It is best that he or she is aware and agrees to act as caregiver and has fully contemplated the ramifications about caring for the pet. Performing a mock-exercise where the caregiver assumes the responsibility may indicate whether that person is the correct choice. Because circumstances can change, having a backup caregiver is advisable.Hopefully these tips will help those who are including pets in their estate plans have a good starting point. By planning ahead, you can ensure that your pets have a long and happy life, even after you're gone.
Source: Observer and Eccentric, "Estate planning for pets," April 15, 2012
]]>Creativity was key when it came time for the ultra-rich individuals to plan out their estates. Although it seems like it is an easy way to protect one's assets from the IRS and creditors, nothing they have done is considered suspicious or illegal. The registration statement of Facebook shows how wealthy people can take advantage of laws in order to preserve their assets and transfer large sums of money while also protecting their funds.
]]> Current law allows gifts up to $13,000 to be distributed in cash or other assets to any recipients you wish without being subjected to a gift tax. This amount doubles for a married couple. Before the end of the year, people can give away $5.12 million with no tax consequences. At the end of the year, that amount is scheduled to be drastically reduced to $1 million, and any transfers that exceed that amount will be taxed at 55 percent. The easiest way to take advantage is to gift directly to people or place the money into an irrevocable trust that will protect it from potential creditors.Several other strategies can be employed for smart estate planning in New Jersey, but one of the most important is to be flexible with plans and choose a trustworthy trustee. Planning an estate while younger can be intimidating but an appropriate trustee can see your plans to fruition and change them as your life progresses. There is flexibility in the estate planning process, but it is important to choose the right people and surround yourself with smart and creative financial advisers, no matter the level of your wealth.
Source: Forbes, "You Don't Have To Be A Billionaire To Plan Like One," Deborah Jacobs, April 3, 2012
]]>The relationship between Monroe's estate and CMG was terminated in 2010, and although a deal was reached, the separation between them is rocky. Her estate claims that CMG is exploiting the situation by using copyrighted images and infringing on publicity rights. CMG fired back by suing Monroe's estate, seeking a declaratory that the company has not done anything improper.
]]> Before the partnership terminated, CMG acted as the estate's agent in other litigation involving copyrighted Monroe images. When a 2008 legal battle reared its head with One West Publishing over the claimed improper use of copyrighted images, CMG claims it paid $325,000 to settle the matter and became the licensing agent for One West as part of the agreement. When Monroe's estate and CMG parted ways, an apparent deal was reached requiring CMG to return assets to her estate in return for a cash payment. CMG sued Monroe's estate the next year in an effort to enforce the terms of the initial agreement. That case settled, but the probate litigation is continuing due to CMG allegedly continuing to use Monroe's likeness in licensing and display of related products.Prior to these lawsuits, a judge found that Monroe would not enjoy broad publicity rights due to the fact that she was domiciled in New York at the time of her death, a jurisdiction where the laws are less favorable to the estates of dead celebrities. At the time, her estate was in litigation with Sam Shaw, a photographer who had taken numerous pictures of Monroe. Eventually, her estate settled the lawsuit for $3 million, giving her estate exclusive rights to her image. It is said that the lawsuit possibly damaged the relationship between CMG and Monroe's estate.
The importance of estate planning in New Jersey cannot be understated. Having a strong plan before death can keep a will out of probate litigation. Although many may not be as fortunate to have as an enduring legacy as Marilyn Monroe, ensuring assets are protected, no matter what their size, is an important part of the process.
Source: The Hollywood Reporter, "Marilyn Monroe Images Prompt New Legal Dispute," Eriq Gardner, March 23, 2012
]]>One concern about the figures cited is that they seem to contribute to the perception that Americans are not saving money. Some might argue that the projected inheritance money over the next decade may help our struggling economy get back on its feet, a notion that may well put a smile of the face of retail establishments. However, others may worry that the continued lack of savings does not bode well for the future and that estate planning steps should be taken now to forestall the ability to fritter away one's hard-earned assets.
]]> One notion is that worthwhile expenditures like college education should be emphasized. Indeed, it is possible to create an estate planning scenario that earmarks worthy pursuits like higher education, starting a business or buying one's first home. Those New Jersey residents confronting these issues may want to do some soul-searching concerning how and in what manner they wish to divide their assets on their death for the benefit of loved ones in a worthwhile manner.Source: HER Daily Dose, "Americans Only Save Half Of Their Inheritances - HER Daily Dose," Bailey Mosier, March 20, 2012
]]>Recently, a mother who had lost her son in a motorcycle crash attempted to access his Facebook account, hoping to learn more about the son she had lost. Although the company initially granted access, within two hours, Facebook changed her son's password and locked her out of his account. The woman was heartbroken and turned to the courts. A lawsuit against Facebook followed, which entailed a two-year legal battle.
]]> She ultimately prevailed and was granted 10 months of access to her son's account before its permanent removal. Facebook's current policy when a death is reported is to place the person's account in memorial format. This format removes certain information but allows people to post remembrance messages.Currently, Facebook will only provide the estate with account data if it is mandated by law or if prior consent has been obtained by the account holder. The mother's lawsuit has spurred other states to consider legislation that would force social media sites to grant access to loved ones after a family member passes away. The legislation would make the contents on these sites part of a person's "digital estate."
One state has proposed legislation that would essentially treat Facebook as an asset that could be taken over by a family member or friend after the account owner passes away. While the number of people asking for access to accounts remains relatively low, those who have sought access may simply be searching for a way to have one more moment with their loved ones by accessing personal photos or written mementos. Whether or not similar legislation is enacted in New Jersey remains to be seen, but it increasingly appears that Facebook and other social media sites may become part of a person's estate administration planning.
Source: The Washington Post, "Is Facebook part of your estate? States weigh laws to govern social media accounts after death," March 15, 2012
]]>If someone has already completed their estate planning, the signature on all documents should be checked, and all beneficiary designations should be confirmed and changed as desired. An old or outdated will might be a red flag that causes the estate to wind up in unnecessary and expensive probate litigation. Likewise, for those who may have divorced, an estate planning update may be just what the doctor ordered.
]]> Life changes sometimes occur suddenly and relationships change. It is generally a good idea to ensure that desired estate planning changes reflect one's current intentions in order to avoid an inheritance or other funds ending up in the wrong hands. Severed ties with friends or associates who are named as executors or trustees may dictate that changes in estate planning should be amended as circumstances present themselves. Additionally, keeping current on tax laws is a smart decision to monitor changes and ensure that estate taxes and fees are minimized.Numerous problems can crop up if someone is not continually aware of events and circumstances that could impact their plans. Forgetting to act could result in an estate being distributed against one's actual intentions. In New Jersey, making estate planning changes does not have to be unnecessarily complicated, but it should be at the forefront when circumstances warrant. A simple change of beneficiary designation could mean the difference between the funds going where they were intended and the wrong individual ending up with an unexpected windfall.
Source: The State Journal-Register, "Making Cents: Don't forget about estate planning," John P. Napolitano, Feb. 29, 2012
]]>The original will left a 35-acre seafront property for the benefit of public school children with the express stipulation that the land never be sold or wasted. A trust was created, said to be the first charitable trust in the country, and thereafter 167 cottages were constructed on the property, with the rental income perennially applied to the public school system ever since.
]]> But now the trustees want to disband the trust and scrap the man's will. Instead, the trustees suggest that the property be converted to condominiums with the housing sold to the renters in order to settle a lawsuit. And the local probate court thinks it is a good idea and has signed off on the request. However, residents oppose the proposed action, claiming that converting the land into condominiums violates the original wishes of the man's will. The dispute was scheduled to be heard in appeals court last week.The attorney general's office in this Massachusetts dispute also sides with the trustees and backs the suggested sale of the land, believing that the trust had become unable to benefit the local public schools any longer.
While it remains to be seen how this litigation will be resolved, it underscores for New Jersey residents that an individual's last will and testament is typically taken seriously by the courts. This will and related trust have stood the test of time for 351 years and perhaps will survive this dispute as well. Those contemplating creating a long-standing trust would do well to fully investigate the law and procedures concerning trusts and estates in New Jersey in order to accomplish one's intended plan.
Source: New Jersey Herald, "351-year-old will sparks bitter dispute in Mass.," Rodrique Ngowi, Feb. 24, 2012
]]>A main provision expiring this year is the Federal Estate, Gift and Generation Skipping Transfer Tax which allows for transfers during life or death up to $5,120,000 per person. Considering that this amount is the largest figure allowed since the estate tax was established, those potentially affected may do well to consult someone knowledgeable in the estate planning process to take advantage of opportunities and avoid any potential issues concerning the lifetime gift exclusion and estate tax considerations.
]]> Taking advantage now of the provisions that are scheduled to expire by the end of this year may help minimize any tax implications and even eliminate future tax liability for one's heirs, depending on the decisions made and the overall size of the estate.Planning an estate can involve asking difficult questions such as who should inherit one's assets, who should handle financial affairs in the event one becomes incapacitated, and who should handle important medical decisions under certain specified circumstances. Asking these questions sooner rather than later can allow sufficient time to make intentions clear and help dispel potential conflict. Estate planning in Newark and throughout New Jersey can sometimes seem complicated and intimidating, and steps taken to educate oneself in order to make informed decisions can only benefit those involved
Source: Forbes, "Tax Free Gifting During 2012 - A Great Deal!," Rob Clarfeld, Feb. 14, 2012
]]>Parks chose her long-standing caretaker and another individual to handle her estate affairs. However, her relatives accused them of undue influence and of attempting to manipulate Parks into cutting them out of her will. A written agreement was reached in February 2007 that included a confidentiality clause. A claimed breach of that clause led to the removal of the original executors, who were replaced by two lawyers. But the legal wrangling continued.
]]> The Michigan Supreme Court has now ruled there was no breach of confidentiality, effectively voiding the reason for the removal of the original executors. The court also specifically mandated that those individuals be reappointed so as to be consistent with the clearly stipulated wishes of Rosa Parks. In so doing the court released the details of the February 2007 estate settlement, the highlights of which provided that the caretaker and the Rosa and Raymond Parks Institute for Self Development would receive 80 percent of the net proceeds from the sale of her belongings, in addition to the royalties from the license of her name, image and likeness. Her nieces and nephews would receive 20 percent.Observers believe the judge in the case will closely watch how the estate administrators proceed with the agreement in view of the continued litigation and cross accusations of the parties. While probate litigation in New Jersey will not always be able to be avoided, taking the time to properly create a comprehensive estate plan can help limit the likelihood of a will being disputed.
Source: Detroit Free Press, "The secrets are out on deal to settle suit over Rosa Parks estate," David Ashenfelter, Feb. 5, 2012
]]>A lot of people who work with senior citizens on their estate administration plans use third-party disclosure forms. These forms allow an attorney to speak to those authorized by the client to discuss estate matters if the attorney believes a client is experiencing problems with their memory. However, with any third-party disclosure form, there is always the risk that the third party may improperly use the information given to them. That is why it is so important to begin estate planning when one is healthy and able to make decisions about who is trustworthy.
]]> Yet age is not the only factor in deciding when to use a disclosure form. If someone is involved in an accident or suffers from an illness that incapacitates them, the form could become very important because it allows an advisor or an attorney to reach out to a family member or friend. In addition, in the case of an emergency and when the client is otherwise unreachable, the disclosure form allows the adviser or attorney to speak to a third party immediately.A disclosure agreement can even be made into a limited durable power of attorney, which is useful if one becomes incapacitated due to an unexpected injury or illness. However, it is also just one of many things that a proper estate planning process requires. In the past, New Jersey residents have often found it helpful to seek the aid of an attorney to assist with matters such as drafting a will, minimizing the impact of taxes on the estate, and with making appropriate dispensations of property.
Source: The Wall Street Journal, "As Population Ages, Disclosure Forms Become Key," Caitlin Nish, Jan. 26, 2012
]]>Contrary to some belief, estate planning is not only for the very wealthy. Those who earn modest incomes but have invested well and have property can also benefit from proper planning. Regardless of how many assets you have, having a valid will in place may ensure that your heirs receive the property that you have left them and may help avoid probate litigation if you have a strong plan in place. If you're still not sure, take a lesson from Martin Luther King Jr., whose estate is in dispute because he did not have a will.
]]> Recently, Martin Luther King Jr. made headlines when his family became involved in a legal dispute with his former secretary. The woman has documents, including a note from Rosa Parks, that the 86-year-old secretary claims were given to her by Martin Luther King Jr. His heirs dispute the woman's story and claim the notes belong to the estate. Since he did not have a valid will, this case is a classic example of "he said, she said." If Martin Luther King Jr. had implemented a will, the case most likely would have never wound up in a court battle.In today's culture, it is shocking that 55 percent of Americans do not have a will, and that likely includes many individuals in New Jersey. Estate planning is not only for older adults. It is for anyone who has minor children, property or other financial investments that need to be divided after their passing. Taking the time to properly plan your estate can ensure that your heirs do not wind up in probate litigation and that your heirs receive the property you intended to give them.
Source: Forbes, "A Common Sense Approach to Estate Planning," Nancy Anderson, Jan. 19, 2012
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