Recent Blog Posts

England's Princes To Inherit Remainder of Diana's Estate

Los Angeles Estate Planning Attorney — Fri, 18 May 2012 13:00:00 GMT

This year when Prince William of England celebrates his 30th birthday, he will have a little extra cash on hand to do it in a big way.

On June 21, 2012, Princes William and Harry will receive the remainder of the inheritance left to them by their mother, the late Princess Diana. The assets were valued at about $20 million at the time of her death in 1997. These assets included stocks, jewelry, and cash. It is believed that since the time of her death the value of the inheritance has grown substantially, to at least $30 million, through smart investments.

Princess Diana's will also provides the right for the two Princes to split the estate however they see fit. Many believe that William will opt to give more to his brother Harry because when William becomes King of England he will receive money from various other trusts and public funds. William also has a $3 million trust that was left to him by The Queen Mother.

This is a good example of estate planning when you have young children, as Diana did at the time of her death. She chose to allow for growth not only in her estate value over time, but also to allow for her children to grow and mature enough to handle such a large sum of inheritance.

For more information on trusts and estates please contact a professional Estate Planning Attorney.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Survey Says: There's A 50% Chance You Don't Have A Will

Los Angeles Estate Planning Attorney — Tue, 15 May 2012 13:00:00 GMT

A survey conducted by RocketLawyer.com in April of this year has found that 50% of Americans with children to do not have a will. And even more shocking that 41% of baby boomers aged 55-64 also do not have wills. The top 3 reasons for not having a will are: procrastination, believing the don't need one, and the cost associated with creating one.

With the number of single parents or unwed partners increasing, dying intestate may not be in the best interest for your family. The best way to make sure your partner receives the same protections under the law as if you were married is to write them into your legal estate plans. Without that, they may be left without any power to handle your estate after your passing.

So, stop procrastinating and get started by listing your accounts, retirement plans, employee benefits, real estate, and other assets. You may very well find that you DO need to have a will to distribute your assets wisely. And the cost of not having a will can far, far exceed the cost of preparing one.

So all you parents and baby boomers out there get started now with a professional Estate Planning Attorney!

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Another Victim By Conservator

Los Angeles Estate Planning Attorney — Mon, 14 May 2012 13:00:00 GMT

It stands to reason that two people you should trust most are your lawyer and your conservator. And if they are both one and the same, that person had better have your needs as top priority. However, that seems to not have been the case for Josephine Smoron.

While John Nugent was serving as Josephine's lawyer and conservator, he is charged with ignoring her wishes and having unencumbered her real estate. He created two trusts, named himself trustee of both of them, then transferred her assets into them to take control over them. He then sold farm property to a developer. A farm that was already intended for another beneficiary. And unfortunately, because Josephine was in a court appointed conservatorship, her wishes were simply being ignored.

The case is still being resolved in the courts. And Nugent and his lawyer deny any malpractice or wrong doing.

If you suspect any wrongdoing by a conservator over your loved one please contact an Attorney for Conservatorships as soon as possible.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Choice of Law Clause

Los Angeles Estate Planning Attorney — Wed, 09 May 2012 13:10:00 GMT

A choice of law clause, also known as proper law clause, is basically a contract term in which the parties specify that if disputes arise under the contract then they will be handled in accordance with the law of a particular jurisdiction, which may or may not be in the same city or state.

For example, if a married couple were joint owners of an investment and one of them dies disputes may arise regarding who inherits that investment due to survivorship. Children from a previous marriage may try to claim the investment under local state law if there were no expressed provision for survivorship. However, if there is a choice of law clause, the case could be tried under different state law where rights of survivorship are favored even without being expressly stated.

Please contact a professional Estate Administration Attorney if you have questions regarding clauses that may effect non-probate transfers.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Government Worker's Indicted Over Intestate Decendents' Estates

Los Angeles Estate Planning Attorney — Tue, 08 May 2012 13:05:00 GMT

In a recent New York case, Richard Paul, the bookkeeper for the Brooklyn public administrator's office, has been charged with allegedly funneling more than $2.6 million into personal accounts from citizens who have died without wills or other estate plans. Three other suspects are also involved.

It was Paul's job to move assets from estates without beneficiaries into the Department of Finance. However, instead of funding that money to the city, he is charged with rerouting those checks to other city employees who were not authorized to receive the cash. This took place over a period of 3 years from 2008 until 2011.

Paul is charged with grand larceny and defrauding the government. The other suspects are each charged with grand larceny.

This is a good example of why you should have at the very least a will. One, do you want your life's material worth going to the state? And two, do you want it going to corrupt state officials to be used for their own personal gain? Of course not.

Please consult with a professional Estate Planning Attorney as soon as possible. Gift your assets to someone you love or even to charity if you have no other beneficiaries. Don't let your hard earned assets be taken and used by strangers for things you would have never approved of.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Courtney Love Relinquishes More Control Over Cobain Image

Los Angeles Estate Planning Attorney — Mon, 07 May 2012 13:50:00 GMT

Recent reports regarding Courtney Love's involvement with the estate of late Kurt Cobain indicate that she has agreed to step down as an acting manager for the company responsible for Cobain's publicity rights, End of Music LLC.

According to the reports, the daughter of Courtney and Kurt, Frances Bean, has taken over managing the publicity rights and has also been given control over Kurt Cobain's likeness and appearance. She will also have final say in business agreements arranged by the current acting manager of End of Music LLC.

Ms. Love's agreement to step down from her positions stems from several Cobain estate issues, including a $2.75 million loan that was taken from her daughter's trust fund back in 2010. A loan that has not been paid back. She was also ousted as an advisor to that trust fund by the other trustees. That case still continues on through arbitration in Los Angeles.

Please contact a professional Los Angeles Estate Planning Attorney for more information on forming trusts that deal with intellectual property rights and other financial issues that are unique to performers and other entertainment industry professionals.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Dick Clark's Huge Estate

Los Angeles Estate Planning Attorney — Thu, 03 May 2012 13:00:00 GMT

When America's Oldest Teenager, Dick Clark, died last month at the age of 82, he left behind a fortune estimated to worth hundreds of millions of dollars.

Dick Clark was described as a workaholic who was involved with many enterprises outside of his well known public persona. Not many people realize he was involved with restaurants, concerts, productions, and real estate.

Much of his fortune came through revenues from his company, Dick Clark Productions. Initially a public company from 1987, it was then taken private again in 2002 to the tune of $140 million. Clark stayed on as CEO and sold his 70% stake, but reinvested with the new owners. He exceptional loyalty to the shareholders was evident when he accepted $12.50 a share vs. $14.50 the other shareholders received.

Clark's fortune grew even more when the company was sold again in 2007 to RedZone Capital for $175 million. At this time, Clark sold the rest of his stake and did not remain as involved as he had with the other company. Which is likened to the fact that he suffered from a stroke in 2004 leaving him with impaired speech and mobility.

It remains to be seen, if ever, how Dick Clark's estate will be handled. No doubt he had a series of solid estate planning instruments to handle such a vast fortune.

If you've worked as hard as Dick Clark and want to make sure your wealth is taken care of upon your death or incapacitation, please consult with a professional Los Angeles Estate Planning Attorney.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Take Advantage of This Year's Favorable Estate Tax Laws

Los Angeles Estate Planning Attorney — Wed, 02 May 2012 13:00:00 GMT

Estate taxes are set to go through many changes within the next few years and that is not such good news for some. Families that are moderately wealthy, with about $4 to $15 million, are probably going to be hurt the most by those changes. This might be the last year where estate taxes are favorable, so if you fall within that millionaire range, you might want to start thinking about ways to take advantage of this year's estate tax rules.

Some financial advisors suggest creating family limited partnerships. Then they can create a gifting program after determining assets and liabilities. The non-liquid assets that qualify for the gifting program could then be gifted. However, the valuation of the gifts could become a problem, but you could possibly get around this by only gifting share interests in the limited partnership.

As always, setting up partnerships is a complicated process and you should always consult with a professional Estate Planning Attorney to find out if that is the right course of action for you. There may be also be other ways to avoid higher taxes that are better suited for your estate.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Dealing With Social Media After Death

Los Angeles Estate Planning Attorney — Tue, 01 May 2012 13:00:00 GMT

In this age of social media many people have many personal social sites on the internet whether it be Twitter, Facebook, Myspace (is that still used?), GooglePlus, YouTube, Blogger and the list just goes on and on and on. But what happens to all of those sites when you pass away? Do you want those sites to continue running or to be shut down permanently?

One solution to these problems is creating a type of social media trust that can dictate to a trustee how to operate these accounts after your passing. In the trust you can leave all your passwords and usernames in order for them to access your accounts. You could also transfer any income you've already made from these sites, maybe through advertising or donations, into the trust, as well as, future revenue.

You could also create a simple will giving an executor access and control to your social media accounts. However, this would probably not be the best way due to the fact that the will would become public record once entered into probate. You wouldn't want somebody hacking into your network and ruining something you've taken years to build.

Please contact a trusted professional Estate Planning Attorney if you are worried about your social media and would like to make sure those accounts are either maintained or abolished after your death.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Britney Spears' Fiance Appointed As Co-Conservator

Los Angeles Estate Planning Attorney — Mon, 30 Apr 2012 11:33:00 GMT

It is being reported that Britney Spear's fiance, Jason Trawick, will be appointed to serve as co-conservator alongside her father Jamie Spears. The application for co-conservatoship was approved by a California judge on April 25th. This will mean that Mr. Trawick will now have the legal right to make decisions regarding Britney's finances and the managing of her estate.

This decision to allow her fiance to be a co-conservator is not an usual situation. It is rare that a co-conservatorhip is approved to someone who is engaged to the conservatee. Most likely because engagements don't always follow through to marriage. And who would want a jilted ex-lover has their conservator? However, in this case, it is possible that they will be married very soon and the judge may be confident that they will follow through.

Trawick will oversee the day to day financial aspects of Britney's life, while her father will continue to serve the majority role controlling the rest of the estate.

It is said that now that the conservatorship application has been approved, Britney is set to go ahead an sign an X-Factor judging contract worth about $15 million. No official announcements have yet been made.

For more information on converatorships in the Los Angeles area, please consult one of our professional attorneys at The Law Offices of David A. Shapiro.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

LA Heiress' Trustee Under Investigation

Los Angeles Estate Planning Attorney — Sun, 29 Apr 2012 13:00:00 GMT

I don't have to tell you that when you have an elderly person with possible dementia combined with a lot of cash; the situation is a perfect storm for elderly financial abuse.

Earlier this month the LAPD and LAC District Attorney's office joined forces to investigate the possibility that 82 year old Susan Strong Davis has been financially exploited by her money manager, John E. Larkin. Who is already under scrutiny from the county's Adult Protective Services.

The investigations stem from the discovery of some very large donations and other million dollar real estate deals made from her family trust, worth about $11 million. The Kabbalah Center in Beverly Hills has been the primary benefactor of these gifts. Mr. Larkin in one of two trustees of the Davis Family trust.

Relatives of Ms. Davis say that she has never mentioned anything to do with the Kabbalah Center and that she does not even practice the religion. And that a 2005 $600,000 donation to the organization did not make sense for someone who is not affiliated with the center. However, Mr. Larkin is deeply involved with them and also serves on a committee that handles the center's finances.

At this time no comment has been made by Mr. Larkin regarding the accusations. And the investigation is ongoing.

Please consult with a professional Elder Abuse Attorney if you suspect that an elderly person is being exploited by strangers or even by someone close to them.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Have You Factored In HIPAA Rules Into Your Estate Plans?

Los Angeles Estate Planning Attorney — Sun, 29 Apr 2012 01:00:00 GMT

Although the Health Insurance Portability and Accountability Act, aka HIPAA, is meant to protect your medical privacy, sometimes the rule may cause unwanted situations in regards to the release of medical information that may be crucial in the administration of your estate plan.

All healthcare providers must adhere to these HIPAA rules and safeguard all patients health information and are prohibiting from discussing a patient's heath information with family members and spouses without first obtaining permission for the patient. And when it comes to estates, it is quite common for a power of attorney or a trust to have provisions that a trustee or agent cannot act on your behalf unless you become incapacitated. Which would require certification from a medical professional.

However, the medical professional, under HIPAA rules, would not be able to provide your trustee with this certification unless you had given prior consent. If you had not, they would not be able to act on your behalf until a court order is obtained, which would take quite some time and effort.

You can avoid this situation by updating your healthcare directives to make sure that authorization for release of all your medical information to your representative is firmly spelled out and consented to in accordance to HIPAA law. That way your agent can start to make decisions for you immediately in case of any emergency.

Please take the time to consult with a professional Estate Planning Attorney to either update your existing healthcare directives or to create new ones.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

New Conservatorship Senate Bill Passed

Los Angeles Estate Planning Attorney — Fri, 27 Apr 2012 13:00:00 GMT

Deciding to place a loved one under a conservatorship is never an easy decision to make, but usually it is done in their best interest after careful consideration. However, and unfortunately, sometimes things go awry and your loved one may be placed in the care of someone who does them more harm than good.

There is some very good news for the citizens of Tennesee, as the Senate has recently and unanimously approved a new bill that will require all individuals seeking to become conservators to disclose any criminal record. This is a fantastic step in the right direction for the citizens of the state.

The bill came about in response to the case of Jewell Tinnon, 82 years old. She was placed in a conservatorship at the request of her two grandchildren, but during the court ordered conservatorship, her car, her house, and all of her belongings were sold off to pay for the legal and other court costs. The unbelievable part of this story is that she was never even declared incompetent by any medical professional! She was able to prove her competency and was released from the conservatorship, however, the damage had already been done. She is now suing the lawyer that represented her and the company that auctioned off her belongings for near $11.6 million dollars.

Rep. Gary Odom, who filed the bill, said this is a good first step for protecting the elderly from abuse, but would like other elements to be added to current law, such as, that multiple medical certifications determining incapacity and incompetence should be required.

For more information on conservatorships in the state of California please contact one of our professional attorneys at the Law Offices of David A. Shapiro.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

IRS Files Claim Against Estate of Anna Nicole Smith

Los Angeles Estate Planning Attorney — Thu, 26 Apr 2012 13:37:00 GMT

Anna Nicole Smith was obviously no stranger to controversy when she was alive and the same holds true in her death.

On April 16, 2012, the IRS filed a creditor's claim in the Superior Court of California, County of Los Angeles against her estate. Notification has been issued to Howard K. Stern, the executor of the estate. Her minor daughter, Danielynn, is sole heir.

The IRS alleges that they are owed almost $300,000 in back taxes. Even though the IRS has placed several liens on her estate since the year 2000, according to the court documents they are still owed taxes for the following periods and amounts:

1.31.2008 - $140,513.30
12.31.2003 - $94,266.15
12.31.1994 - $4,835.63

For a total of $239,615.08, plus $49,508.40 in accrued interest. That brings the current total amount due to $289,123.48. Interest will continue to accrue after Sept. 30, 2012.

Also, according to the claim, no part of the debt has been paid and is now due and payable and also has priority over all other creditors. There have been no counter claims to the debt.

With a professional and responsible Estate Administration Attorney, you can be assured that estate taxes will be paid in accordance to the law. Hopefully avoiding unnecessary costs to your heirs due to interest and penalties as we see in the case of Anna Nicole Smith.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

Protect Passwords from Probate

Los Angeles Estate Planning Attorney — Wed, 25 Apr 2012 15:39:00 GMT

As more and more people opt for keeping their finances and other affairs strictly online in this digital age the possibility of fraud and other electronically related thefts will likely grow. Thankfully, most institutions keep up with their security protocols and require several levels of security before you can access accounts and other personal information. However, it is up to you to make sure that you keep your physical held passwords and personal information stored as equally secure. Once a thief gets a hold of this info, there is not much to stop them from accessing and stealing funds from your online accounts.

I've recently read some disturbing news about fraudsters doing just that to the estates of decedents. But how did they get my passwords? Well, remember, probate is public. And some testators have been including their passwords to their online accounts within their wills. That is something that one must NEVER do. This can lead to what we'll call: Obtain and Drain. Meaning that once a will becomes public domain anyone can pay the required fee to obtain the will, get your passwords and account information, and then drain those accounts.

There are many different options for placing your usernames and passwords with people you trust, but I would highly recommend that this information be kept in a safety deposit box or with your trusted Estate Planning Attorney along with a list of accounts that go with them. That way, you know everything is safe. And when the time comes the attorney has everything they need at hand in order to begin the administration process as soon as possible.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.