San Antonio, TX Estate Planning

Digital Estate Planning for All Accounts

The digital afterlife is among many conversations that people can engage in when making end-of-life decisions. Ignoring or evading such talks for emotional reasons may have the opposite desired outcome in the end, and prevent loved ones from enjoying their limited time together.

Have you considered how many digital accounts you have out in cyberspace? What will happen to those accounts after you pass away? Well, if nobody can access those accounts when you are gone, it’s hard to tell what will happen.

All sorts of digital accounts now require passwords. Why? To prevent fraud or theft.

This includes accounts we would not have considered as important even a decade ago.

For example, if you open a line of credit with a furniture store, you might be required to produce a password either online or by phone to do something as simple as check the account balance or the next payment due date. If there is still a balance due on the account, then it is important that your executor or estate administrator have that password so he or she can pay the appropriate amount.

If you think that these smaller accounts do not matter, you might be surprised to know that something as simple as scheduling cable repairs can be difficult without the password.

That was the case for a WGN reporter after her husband died of cancer. Her experience is recounted in a recent WGN article titled "Preparing for the digital afterlife."

Unfortunately, her husband was the only person who knew the password and the reporter was therefore unable to request any changes or repairs to the cable account.

When preparing your estate plan remember every account you have.

Even if you think it is too small to bother with in an estate plan, someone will need to have access to it if you pass away.

It's never too early to protect you and your heirs. Click here to read more about what is involved with setting up your estate plan.

Reference: WGN (May 18, 2015) "Preparing for the digital afterlife."

Impact of State Tax Laws on Trusts

Smartly setting up trusts requires knowledge of state tax laws, not just federal rules. “Each state has its own little unique twists and turns,” says Heather Flanagan, a senior wealth planner at PNC Wealth Management. “It’s kind of a hodgepodge right now. It would be nice to have some uniform law.”

Everyone knows that nothing is that simple when it comes to taxes. If things were simple, then a trust could be created under the laws of a given state and would only be subject to taxation in that state. But that is just not always the case.

Trusts are sometimes subject to taxation in the state in which they were formed, the state where the trust creator lives, the state where the trustee lives, the state where a beneficiary lives and the state where trust property is held.

In a recent article titled "Can Another State Tax Your Trust?," Barron's points out how confusing and difficult it can be to navigate the tax laws of many different states that might want to claim the right to tax a trust.

The problem is that there are no standard, nationwide rules about which states can tax a trust.

If the trust is deemed to have a close enough connection to a state, a "nexus" in legalese, then a state can tax the trust.

What constitutes a close enough connection to any given state depends on the laws and court rulings of the state that wishes to impose a tax on a trust.

Nevertheless, with states often facing revenue shortfalls, it is no surprise that legislatures are continuously passing laws in an attempt to mandate that more and more trusts can be taxed by their states.

Because of these state tax issues, it is very important that you have your trust created by an experienced estate planning attorney who can help you navigate tax issues.

Remember also to revisit your trust with your attorney from time to time as state tax laws do change.

When it comes to any government and taxes, you need to stay involved to minimize the tax burdens on your trust.

It’s important to have your estate documents reviewed by a professional with your best interest in mind. Contact us today to set up an appointment to review your current plan.

Reference: Barron's (May 16, 2015) "Can Another State Tax Your Trust?"

Late Art Collector Leaves $100,000 Tip, Boyfriend Contesting Will

Photo: Christie's (inset); Helayne Seidman

The long-time boyfriend of a filthy rich art collector who left $100,000 to two waitresses is fighting to get himself a much larger serving of his late lover’s fortune.

Art collector Robert Ellsworth’s boyfriend is not actually disputing that over-the-top tip. But he is disputing a good portion of his late partner’s will.

When Ellsworth died after a fall in 2014, a will he created in 2013 was offered into probate. The will was most remarkable for the $100,000 he left to a pair of waitresses at his favorite bar. The will also left $10 million to Ellsworth’s boyfriend, Masahiro Hashiguchi, who also received a home, $5,000 a month and regular payments from a trust. 

After Hashiguchi passes away, any assets left in the trust will be distributed to charitable organizations including Harvard University and the Metropolitan Museum of Art.

Despite what would seem like an extremely generous bequest to most people, Hashiguchi is challenging the 2013 will. The New York Post has the scoop in an article titled "Big-tipping bar regular's boyfriend fights for more than just $10M."

Hashiguchi claims that Ellsworth lacked the mental capacity to create the will because of dementia and alcoholism. He also claims that the lawyer who drew up the documents coerced Ellsworth into it so that the lawyer could profit from being the trust administrator.

Hashiguchi has submitted an earlier will from 2010 that leaves almost all of Ellsworth’s $200 million fortune under the control of Hashiguchi.

While it is still too soon to know what the court will decide in this case, one thing is certain. The waitresses will keep their large, final tip as both wills provide for it.

It’s important to have your estate documents reviewed by a professional with your best interest in mind. Contact us today to set up an appointment to review your current plan.

Reference: New York Post (May 14, 2015) "Big-tipping bar regular's boyfriend fights for more than just $10M." 

$788,000 Estate with No Heir to Claim It

 

Kathleen Hilda Ryan, a woman with Mullingar roots, died in Greenwich in the UK in October 2013, at 83 years of age. She left no will, but she did leave behind a small fortune of $788,000 (£500,000). Since then, no relatives have stepped forward to claim the inheritance.

Kathleen had no children of her own and no living siblings.

In fact, as far as anyone knows, she had no living relatives at all. However, it is believed that her aunt, Lizzie, emigrated from Ireland to New York at some point.

Thus, the search is on for what happened to Lizzie and whether she had any children.

If any of Lizzie's children are found, then they would inherit the estate. If no one is found in 30 years, then the estate will become the property of the British Crown.

Many people have submitted claims to being the descendants of Lizzie, but thus far no one has been able to prove it.

Irish Central reported the story in an article titled "Is your ancestor Lizzie Ryan from Westmeath? You could inherit $788,000."

In the United States, the law is basically the same with one big exception. If no relative is found the estate does not go to the British Crown, but rather it passes to the state in which the estate property is located.

Thus, unless you want your estate to become the property of state government, it is very important that you have some kind of estate plan, especially if you do not have any close relatives who can be easily found.

Of course, if you are descended from a Lizzie Ryan who emigrated from Ireland to New York in the mid-1900s, you might want to stake a claim to the estate of Kathleen Hilda Ryan while you can.

It's never too early to protect you and your heirs. Click here to read more about what is involved with setting up your estate plan.

Reference: Irish Central (May 16, 2015) "Is your ancestor Lizzie Ryan from Westmeath? You could inherit $788,000."

John Adams' Trust Challenged, but No Legal Action Has Ensued

Two months ago, a lawyer for a descendant o
f former President John Adams demanded that a Quincy trust established by Adams nearly 200 years ago be returned to the family’s control.

A trust created by President John Adams is still operating and there might be a dispute over control of it, if the dispute ever goes to court.

In 1822 John Adams created a trust to benefit the schoolchildren of Quincy, Massachusetts, his hometown. In the 1950s, by court decision the sole beneficiary of the trust became a private school in Quincy, The Woodward School for Girls.

For many years the city of Quincy managed the trust as trustee. However, in 2011, a probate court removed the city for mismanagement.

So far, the city has paid $1 million in damages to the trust and the school.

A trial is set to determine how much more the city owes.

Recently, a lawyer representing a descendent of Adams sent a letter to the current trustee demanding that control of the trust be returned to the Adams family.

Why?

Because Adams did not intend that the trust be used for the benefit of a school such as Woodward that accepts students from outside of the city of Quincy.

However, as of now, no court action has been taken on the demand.

The Patriot Ledger reported on the story in an article titled "No action from John Adams family over embattled trust."

When creating a charitable trust, it is almost impossible to know what the circumstances will be nearly two centuries later.

Nevertheless, it is important to think about what might happen and to plan how rigid or flexible you want the trust to be when adapting to changing circumstances.

Before he became a revolutionary and President, Adams was a well-known trial attorney so he might not have minded litigation over his trust 200 years later. On the other hand, most people would probably prefer that their trusts stay out of the courts.

For more information about estate planning in San Antonio, Texas and the surrounding areas click here to contact us.

Reference: Patriot Ledger (May 13, 2015) "No action from John Adams family over embattled trust."

Beware of Fake Inheritance Scams

A 54-year-old O’Fallon, Missouri man was sentenced Friday for scamming lenders by telling them he was the beneficiary of a multi-million dollar inheritance, U.S. Attorney Richard Callahan said.

Fox 2 Now reported the story in an article titled "O'Fallon man sentenced for bogus inheritance tale."

A Missouri man, Dana Jefferson, was recently convicted of scamming lenders out of $740,000. He would tell the lenders that his father had left him a large inheritance that he did not currently have access to and promise to repay the loans when he received the inherited money.

Instead, he spent the money by going on cruises and getting plastic surgery.

The details of his story often changed.

He told different lenders he inherited different amounts. Jefferson even used several aliases during his scheme.

One of the important details that has been left out of the story is who the lenders were.

It would be interesting and enlightening to know if these were sophisticated, professional lenders or not. However, a lesson to be learned is that you should never lend someone money based on an inheritance without first getting reliable evidence that the inheritance exists.

It’s important to have your estate documents reviewed by a professional with your best interest in mind. Contact us today to set up an appointment to review your current plan.

Reference: Fox 2 Now (May 8, 2015) "O'Fallon man sentenced for bogus inheritance tale."

Media Mogul Sumner Redstone’s Estate Plan is Under Wraps

Sumner Redstone, the controlling shareholder of CBS Corp. and Viacom Inc. Photographer: Jonathan Alcorn/Bloomberg

“I can tell you that careful planning has been done so that estate taxes at Sumner’s death will not require a forced sale of the stock,” Bishop said. “I cannot give you any other information about his estate plan. It’s private.”

Bloomberg Business reported the story in an article titled "Redstone Says Trustees to Oversee Estate After Death."

Recently it was reported that after 91-year-old Sumner Redstone passes away his daughter will take over as chairwoman of CBS and Viacom. The report appears to have been in error as Redstone's publicist claims that who will take over leadership of the companies has not been decided and will be determined by the directors of the companies.

Additionally, Redstone's estate will be placed into the hands of a seven member trust and plans are in place to ensure that no stock in the companies will need to be sold to pay estate taxes.

How the latter is to be accomplished is being kept private.

The normal advice is that succession plans for businesses should be clearer about exactly who will take over the business when the current person passes away.

This makes it possible for the successor to be known and to begin taking on responsibility while the current CEO is around to assist. That helps to ensure a smooth succession.

However, that advice normally applies to small and family businesses. In the case of major corporations with third party directors, it is not as necessary.

Family business owners should not structure their estate and succession plans as Redstone has done without the advice of an attorney. However, in this case, it appears Mr. Redstone has not necessarily made a mistake.

Are you a business owner who wants to protect your business and avoid family conflict in the process? Click here for more information.

Reference: Bloomberg Business (May 7, 2015) "Redstone Says Trustees to Oversee Estate After Death."

Want to Pass on Frequent Flyer Miles? Better Put That in Your Estate Plan!

Along with all the other paperwork that comes with being newly widowed, Roberta Bekerman had to persuade Delta Air Lines that she was entitled to inherit her husband’s frequent-flier miles. The company’s policy says that its SkyMiles, as they are called, may not be transferred “under any circumstances,” including death. But Ms. Bekerman, whose husband was a trust and estate lawyer, asked them to make an exception.

Wouldn’t it be nice to inherit some travel points? Just think of all the unused frequent flyer miles out there! But if you take the time to read the terms and conditions of most frequent flier, hotel reward, and credit card loyalty programs, you will find that they prohibit the transfer of accumulated points to another person, including when the program participant passes away.

However, the actual policy of most companies is to allow their employees some flexibility whether to allow transfer of points after death.

That means that when asked employees can transfer the points to an heir's account, as reported by the New York Times in an article titled "Loyalty Program Rules Aren't Ironclad."

If something can be transferred after death, then you should make it a part of your estate plan.

That is the best way to make sure that the assets go to the person or persons you want them to.

However, because loyalty programs are usually only transferrable based on the grace of the company, your estate plan should probably not rely on them for balance. In other words, it might not be a great idea to give one person less money because you are leaving them your frequent flier miles.

If the company refuses to transfer the miles, that could lead to problems.

It’s important to have your estate documents reviewed by a professional with your best interest in mind. Contact us today to set up an appointment to review your current plan.

Reference: New York Times (May 6, 2015) "Loyalty Program Rules Aren't Ironclad."

Bartender - How About a Round of Drinks for My Heirs?

A dying man left money in his will as a surprise for his best mates, so they could go on a boozy holiday together.

Roger Brown of Swansea, England recently died of prostate cancer at the age of 67. It came as a surprise to his friends that Brown left them a small sum of money with directions that they use it to go on a trip together to a European city and have drinks there on him.

You see, Brown had visited the same pub for over 40 years and drank there with the same group of people.

They all became close friends.

The Daily Star reported the story in an article titled "Cheers: Dead man buys last round for best mates by leaving surprise money in his will."

This small bequest was perfectly tailored for what the men did together.

It gave an appropriate way for Brown's friends to remember him.

You could do something similar in your estate plan by leaving something to people that you are close to. That does not mean that you have to leave your friends money to buy beer. You should leave something appropriate for what you and your friends do together.

When making your estate plan, keep in mind that you do not have to just give everything to your family. You can also give small sums to others who have touched your life.

It's never too early to protect you and your heirs. Click here to read more about what is involved with setting up your estate plan.

Reference: Daily Star (May 6, 2015) "Cheers: Dead man buys last round for best mates by leaving surprise money in his will."

Busted! Will Forgery Suspect Arrested

A Walnut Ridge woman was arrested Thursday for forging a will after someone else had died.

KAIT reported the story in an article titled "Woman arrested for forging new will after someone died."

An Arkansas woman, Kimberly Dement Dotson, has been arrested for allegedly forging the will of an elderly person.

She is believed to have forged the will after the victim passed away.

Naturally, the will stated that she should receive the entire estate.

Dotson told the court that the victim had no living relatives, which was not true. She also stands accused of using the man's debit card and withdrawing money from his bank account for her own personal use.

This is the latest incident of something that happens all too often.

It is very important that family members remain diligent and ensure that someone is not taking advantage of their elderly relatives.

If a relative passes away, it is also important to act quickly when filing wills with the court so that anyone who forges a different will can be caught before too much damage is done.

To learn more about protecting yourself and your elderly relatives, speak with an experienced estate planning (or elder law attorney) about what you can do.

For more information about estate planning in San Antonio, Texas and the surrounding areas click here to contact us.

Reference: KAIT, Region 8 Newsdesk (May 9, 2015) "Woman arrested for forging new will after someone died."