Jarvis Law Office

Prince's Estate Is Awash in Controversy

Often times, people choose not to get an estate plan because of the perceived cost. However, the cost of NOT having an estate plan can also be pretty high as TMZ reports in "Prince Lawyers Haul in Millions off Death."

The administrator of Prince’s estate has submitted a legal bill for the court's approval. It is requesting that the estate pay legal fees in the amount of $2.3 million to various attorneys who have worked on the case so far. The requested fees only cover work done between July 1st and September 30th.  Since administering the estate is nowhere close to being finished, the final legal bill will be much more than that.

With an estimated worth of at least $200 million, it was known that it was going to be expensive to handle Prince's estate. However, it would have been far less expensive if the musician had taken the time to get an estate plan.

For only three months, of what certainly will be a long process, the legal fees alone have already eaten up 1% of the estate's value.

Not only is that a costly mistake but courts will now determine where the assets will go.

Even for estates much smaller than $200 million, the cost of not having an estate plan can still be very high. It can also add a tremendous amount of work and stress to loved ones in an already difficult time.

Reference: TMZ (Dec. 1, 2016) "Prince Lawyers Haul in Millions off Death."

Financial Abuse of Elders Draws Legislative Focus

A report by the General Accountability Office on the financial abuse of elder Americans has resulted in a hearing by the Senate Special Committee on Aging, according to Financial Advisor in "Senators, GAO, Decry Elder Financial Abuse By Guardians, Complicit Courts."

One of the key recommendations is that courts should more carefully consider whether a guardian is necessary or if the elderly person could adequately be taken care of by a caregiver. If a guardian is appointed, then it is advised that the court should oversee the guardian’s actions and make assessments in the future about whether the guardian is still needed.

It was also recommended that guardians receive mandatory training on their responsibilities.

The government should have a better idea of the scope of this problem in the future. Next year the Department of Health and Human Services will launch a National Adult Maltreatment Reporting System that will collect data from state agencies about elder abuse.

Please contact authorities or an elder law attorney, if you suspect any abuse of elder citizens.

Reference: Financial Advisor (Dec. 1, 2016) "Senators, GAO, Decry Elder Financial Abuse By Guardians, Complicit Courts."

Media Calculations See Prince’s Estate at $200 Million

Following calculations made by experienced journalists, the total value of Prince's estate is estimated at $200 million, according to the Daily Mail in "Prince's estate is worth at least $200 MILLION, court filing shows, thanks to his extensive catalogue, unreleased music and Paisley Park mansion."

This estimate is known because the Bremer Trust, administering the estate, recently submitted its current fees to the court. The group charges a monthly fee to administer estates based on the total value of the estate and a sliding scale. With that information made public through the court documents, reporters were able to calculate the estimated value of the estate.

It is possible that the actual value of Prince's estate is much higher. This could be a low, initial value for estate tax purposes. The estate has until Jan. 21, 2017 to file documents with tax authorities, unless an extension is requested.

Federal and state tax agencies might have different opinions about the total value of Prince's assets at the time of his death.

Prince died without an estate plan and under Minnesota law, his closet living relative will inherit the estate.

Just who those relatives are, has been the source of much speculation and several legal proceedings.

Reference: Daily Mail (Nov. 30, 2016) "Prince's estate is worth at least $200 MILLION, court filing shows, thanks to his extensive catalogue, unreleased music and Paisley Park mansion."

Do Illegal Immigrants Have Rights of Inheritance?

An issue recently came up about the inheritance rights of illegal immigrants in the Market Watch article "My brother-in-law is an undocumented immigrant -- can he inherit my sister's house?"

A woman wrote in explaining that her deceased sister had been married to an illegal immigrant for 30 years. The husband, who had never applied for a green card or U.S. citizenship, was afraid to put the house in his name and claim the inheritance, because he fears deportation.

She wondered whether he can inherit the property.

The simple answer is that he can inherit the property.

With some restrictions, foreigners can own real estate in the U.S. Estate law does not discriminate against non-U.S. citizens.

Of course, that does not mean that the husband cannot be deported.

An experienced estate planning attorney can help you navigate these, and other difficult family situations, in creating an estate plan that will work for you.

Reference: Market Watch (November 27, 2016) "My brother-in-law is an undocumented immigrant -- can he inherit my sister's house?"

Woman Claiming to Be Prince’s Wife Steps Forward

The fervor caused by people claiming to be heirs of Prince has died down.  However, a new claimant has come forward with a marriage license and a will, according to TMZ in "Prince Woman Warns Estate ... Step Aside, I'm His Wife."

The woman, Claire Elisabeth Elliot, claims that she can prove her status as Prince's wife with a marriage certificate and a will. She is requesting that the current estate administrator be dismissed and that she be put in charge and named the sole heir. It is unlikely that the woman's claims are true.

She previously filed to be elected the President of the United States.

It should not take too long for the estate to dismiss this claim, but the lesson is that the estate should not have to deal with these claims at all.

By not having an estate plan, Prince left his estate vulnerable to these claims. Because the estate has to go through probate, it is easy for anyone to file a claim against it.

It would have definitely been much harder for these claims to have been made had the estate been kept out of probate. Without probate, people would have had to start lawsuits on their own rather than simply file a motion in the probate case. Also, without probate, the estate would have likely been handled privately, as opposed to everything happening in the case becoming part of the public record.

Reference: TMZ (Nov. 28, 2016) "Prince Woman Warns Estate ... Step Aside, I'm His Wife."

Co-leased Apartment Responsibility of an Estate?

Is the estate responsible for paying rent if an agreement was signed to co-lease an apartment? That is the question considered by The New York Times recently in "A Roommate Dies; Must His Estate Pay the Rent?"

An estate is responsible for any debts of the deceased as well as fulfilling any contracts that are signed.  However, sometimes the questions are not as simple.

In the case discussed in the article, a woman was renting a garage apartment with her boyfriend who passed away. She continued to pay the full rent and wondered if she could receive her boyfriend's share of the rent from his estate.

The simple answer is yes, she can.

The estate, if it has the money to do so, would normally be responsible to pay her back for the rent. However, her claim against the estate would not be first in line to be paid, and she would only get paid if there is enough money left in the estate to do so. In Ohio, the law sets out the order of priority for paying the debts of a decedent. A debt such as his share of the rent would have a low priority.

Her position could be strengthened if she and her boyfriend had signed a written agreement about the amount of rent each of them was responsible for and what to do in the event that one of them passed away during the term of the lease.

It is important to receive help from an estate planning attorney when administering an estate so as to ensure the law is being followed properly. An estate planning attorney can also guide you to the answers to any similar questions.

Reference: New York Times (Nov. 5, 2016) "A Roommate Dies; Must His Estate Pay the Rent?"

ER Staff Often Unable to Identify Elder Abuse

Elderly Americans who are abused, often end up in the emergency room and unfortunately, the abuse is sometimes not diagnosed, according to CBS News in "Elder abuse often missed in the ER."

It is estimated that 10% of American senior citizens are the victims of elder abuse. It can be difficult to catch the perpetrators because the victims are often isolated and medical care is not regularly sought.

This is alarming because it means that many victims of abuse could be treated for injuries caused by their abusers and released back into the care of those same abusers. While the primary job of emergency room staff is not to detect elder abuse, they can and should do a better job of making sure that injuries suffered by their elderly patients are not the result of abuse.

This new study will hopefully lead to a renewed focus in emergency rooms on this important issue and to increased staff training about how to detect potential elder abuse victims.

If you should suspect any situations of elder abuse, please contact authorities or an elder law attorney.

Reference: CBS News (Nov. 25, 2016) "Elder abuse often missed in the ER."          

To Challenge or Not to Challenge

If you are considering a challenge to an estate, you may find that the initial inquiry leads to the obvious answer, according to Market Watch column "My stepfather left $1 million to strangers and dead people."

It is often very expensive and hard to be successful in challenging an estate, so it is always wise to consider it carefully. This includes asking if the estate seems reasonable and if there are any circumstances that create suspicion.

In the case in Market Watch, a reader wrote in to ask about some instructions that his stepfather had left concerning a trust written a few days before the stepfather passed away. Instead of leaving any money for his wife of 60 years or any other close relatives, the stepfather decided to leave everything to relatives who lived overseas with whom he had no contact for years.

At least one of those foreign relatives was dead at the time.

While this is a pretty simple case of plans that do not on their surface appear reasonable to an independent observer, most cases are far less straightforward.

An estate planning attorney can advise you on the possibility of success and if it is a good move to challenge an estate.

Reference: Market Watch (Nov. 26, 2016) "My stepfather left $1 million to strangers and dead people."

Chance of Suffering from Alzheimer's Can Be Reduced

Market Watch recently ran an article with tips from a neuroscientist on slowing the progress of Alzheimer’s in "These simple lifestyle changes can prevent or slow Alzheimer's."

Scientists have learned enough about how the human body and brain work that they now understand some ways the disease's progress can be slowed and perhaps, even prevented in the first place.

The tips include:

• Get Regular Exercise - It is believed that regular moderate exercise can help slow the progress of Alzheimer's. A mere 2.5 hours of weekly exercise as simple as taking regular 15 minute walks can be helpful.
• Move Frequently - Long periods of time sitting down will cause the body to go into a metabolic rest state that can ultimately be harmful. It is suggested that whether you are at home or in the office, you should get up and move around every half hour or so during the day.
• Mediterranean Diet - Dietary changes can also be helpful. You should consider eating more fruits, vegetables, whole grains, nuts and legumes. Replacing butter with olive oil is also good. Finally, it is a good idea to use poultry and fish as your main protein sources more often than beef and pork.

Reference: Market Watch (Nov. 23, 2016) "These simple lifestyle changes can prevent or slow Alzheimer's."

Robin Williams' Heirs Face Online Harassment

The estate of Robin Williams has encountered some problems with the discovery of old trust documents, according to Trust Advisor in "Robin Williams Hid His Assets After All, But Any ILITs May Have Backfired On His Planners."

Most of the details of the Williams' estate have been kept private, despite a small public dispute between Williams' widow and his children. However, the recent rediscovery of some old trust documents that had been made public several years ago, has led to Williams' children being harassed on social media.

The late comedian's publicist has disavowed those trusts and stated that they do not accurately reflect William's plans at the time of his death.

The problem is that the old trust documents would never have been made public in the first place, if they had been drafted a little more carefully.

The documents called for two co-trustees, but one of the people who was designated passed away. The remaining co-trustee had to petition a court to allow him to appoint a replacement co-trustee. The trust documents were made public through the court case.

This represents a failure of trust drafting, since the trust documents should have had provisions for successor trustees and how they could be named without the need to go to court.

Reference: Trust Advisor (Nov. 20, 2016) "Robin Williams Hid His Assets After All, But Any ILITs May Have Backfired On His Planners."