NEWS AND COMMENTARY

Published on: October 28, 2009

Estate Issues Litigated in J.R.R.Tolkien Estate 26 Years after Death

In the Estate Planning area, we frequently see estates remaining open for years or litigation developing long after a person’s death. Do you remember “The Hobbit” written by J.R.R. Tolkien? For many of us baby boomers, it was a favorite story, one of the first “fantasy” novels which have become so popular. First published in 1937, it is now scheduled to be released in theaters as two prequels to the “Lord of the Rings.” The “Lord of the Rings” trilogy grossed about $2.9 billion world wide plus another $3 billion from DVD, TV licensing, and merchandise.

The movie based on The Hobbit was a long time coming because the movie studio who owned the rights to the story was sued by the heirs of J.R.R. Tolkien who died in 1973. Mr. Tolkien had sold the movie rights in 1969 for $250,000. The studio was to pay his heirs a percentage of the gross receipts after certain production and advertising expenses were deducted. The two children of Mr. Tolkien claimed that the accountancy methods used to apply this formula were improper so as to reduce the payments to them. Their initial demand in the lawsuit was in excess of $150 million, which increased as the case progressed because discovery, according to the estate’s lawyers, revealed additional impropriety.

The case was scheduled to go to trial in October and has apparently been settled. The settlement amount is confidential although some sources claim it is well over $100 million. The settlement paves the way for the movie studio New Line Cinema, a subsidiary of Warner Brothers, to move forward with the Hobbit movies.

Published on: October 24, 2009

Useful Links for Retirement Issues

by Scott C. Soady

In San Diego, there are many people wondering in this economy, when they can retire, when to take social security, how much they need to retire, etc. Social security has predicted that many Americans will live into their 90’s in the years to come and the cost of living will continue to increase so these aspects of retirement also have to be considered.

When to take social security? Although the normal age is 66 years, you can take benefits as early as 62, but your monthly benefit will be reduced. Social security has a table to determine how much it will be reduced. If you take social security early and still continue to work, your benefit will also be reduced for every dollar you earn over $14,160. See the SSA website for a chart on the amount of reduction.

If can be difficult to calculate how much you need to have saved to start retirement. Many people by delaying retirement just for a year or two can increase their annual retirement income by 9 or 10%. There are many on line sites where you can calculate how much you need for retirement. One is on Money Magazine. Another is offered by T. Rowe Price and there are many others. Make sure when you input information, consider that most peple will need at least 70% of their pre-retirement income after they retire. Be sure to add in all sources of income such as a part time job or a second career. Also figure in your projected social security benefits at retirement age.

Published on: October 12, 2009

Interesting Estate Planning Issues in Brooke Astor’s Estate Disaster

by Scott C. Soady

Recently you may have heard about the conviction of Anthony Marshall, son of New York philanthropist and socialite Brooke Astor. Tony Marshall, the only son of Brooke Astor, was convicted of 14 counts of grand theft and larceny for allegedly stealing millions from his mother’s estate while she was suffering from Alzheimer’s disease. The lawyer who prepared an amendment to Mrs. Astor’s will was also convicted on charges of fraud and conspiracy and one count of forging Mrs. Astor’s name to the amendment which changed the distribution of her estate. The amendment was made when Mrs. Astor was almost 102.

Now controversy will shift to what will be done with Mrs. Astor’s estimated $180 million dollar estate. Some people speculate that the conviction might cost the grandsons of Mrs. Astor, Phillip Marshall and his twin brother Alexander, about $10 million each, a fact apparently not known to Phillip when he started a guardianship proceeding in 2006. Phillip petitioned the Probate Court to appoint a guardian for his grandmother, claiming that his father Tony was allowing her to live in squalor, telling her she had no money left, all the while taking millions from her estate. The guardianship proceeding caused prosecutors to begin investigating Tony Marshall which then led to the criminal charges. Phillip Marshall has said he never knew about the inheritance for he and his brother from his father’s estate and that it was “not about the money. He wanted to protect his grandmother.”

Hopefully what this case has done in the real world is raise the public’s awareness about elder abuse. Elder abuse affects about 2 million Americans over the age of 65. It can be physical abuse such as using force or causing physical injury or it can be neglect. Elder abuse can also be financial abuse where someone wrongfully takes or uses an elder’s money or other assets. It can also involve, as in the Astor case, using undue influence of forgery to cause an elder to change a will or a trust. It sounds from the Astor trial testimony that the elder abuse there was both types. If we can help with an elder issue such as one discussed here or any other estate planning issue, call us at Law Office of Scott C. Soady, A Professional Corporation.

Published on: October 6, 2009

Martin Luther King Jr. Estate Dispute Still Pending

by Scott C. Soady

Martin Luther King Jr. died in 1968. His wife Coretta Scott King died in 2006 and yet issues are still being disputed over their estates. Two surviving children of Martin Luther King Jr. and Coretta Scott King are fighting over their parents’ estates. Bernice King, who is the administrator of her mother’s estate and her brother Martin Luther King III are suing their brother Dexter King alleging he wrongfully took money from Martin Luther King Jr.’s estate. Dexter King has counter-sued his sister to force her to turn over personal papers and love letters from Coretta Scott King’s estate.

A judge in Atlanta has ordered the personal property in dispute turned over to the Court until the issues can be resolved. The Judge has also order the three children to meet and try to mediate their differences.

Celebrities are no different than their non-famous counterparts when it comes to bickering over the administration of an estate. The probate court will treat them no differently. The only difference may be that they have to do their bickering in public as well as in the court room.

Published on: October 3, 2009

TV Shows Highlight Organ Donation

by Scott C. Soady

ER’s final season and the recent premiere of Grey’s Anatomy were emotional reminders about the importance of organ donation. Family members in both series had to make hard decisions about whether to make organ donations. If you feel strongly about organ donation, one way or the other, it is important to let your family and friends know how you feel. Not only that but you should put your feelings in writing so that family and loved ones know how to carry out your wishes.

In California you can spell out your wishes in an Advance Health Care Directive. You can state whether you want organ donation, whether you don’t, and if you do, what organs and for what purposes. You can specify that you only want to donate organs for transplant or also for education or research. Another way to make organ donation possible is to put a sticker on your driver’s license. In California you can also sign up online with Donate Life California, a nonprofit organ and tissue donor registry. Registration with this entity could speed up the donation process if family members could not locate your advance health care directive.

Statistics show that the need for organs is growing but the amount of organs available for donation is not keeping up with the need. Specifying your feelings about organ donation is just one piece of estate planning. Your family and friends also need to know how you feel about end of life issues and health care, how you want your assets to be distributed upon your death, and who you want to distribute your estate. Putting your wishes down in writing to guide your family and loved ones is the best gift you can give them. Contact our firm if we can help with putting these important decisions down in the appropriate estate plan to meet your goals and specify your wishes.

Published on: June 29, 2009

Settling Michael Jackson’s Estate Could Be a Real Life “Thriller”

by Scott C. Soady

Newspapers and magazines are already commenting that Michael Jackson’s estate will be a real nightmare. No one seems to know at this point whether Jackson had a will or a trust. Some people think there is no way he would have failed to provide for his children. In the absence of a will or a trust, his children would inherit the estate equally.

Whether Jackson created an estate plan or not, his estate will have to be settled, either in the probate court, or through trust administration. There are many creditors already lining up to be included. Although Jackson sold millions of records, he reportedly was in serious debt, perhaps as much as $400 million.

One of the assets in his estate that is going to be fascinating is the publishing rights Jackson had to millions of songs. Jackson outbid Sir Paul McCartney for a 50% interest in a music publishing catalog that includes rights to the Beatles hits as well as publishing rights to other hits by major artists, Jackson apparently paid $48 million for the rights, now estimated to be worth $500 million.

Published on: June 5, 2009

Celebrities Whose Estates Make Millions Long After They’re Dead

by Scott C. Soady

Wouldn’t it be nice for your heirs to conintue to receive money from your estate long after you are gone? A recent article in Forbes Magazine listed the top celebrities whose estates continue to make money long after their death.

Not surprisingly, Evis Presley comes out on top, with income of $52 million in 2008. Some stars that are alive don’t make that much in a year. It is not known exactly how much of that flows into his estate because various entities own interests in the income stream.

Second on the list is Charles Schultz, of “Peanuts” fame whose estate gets a big chunk of the syndicatication and merchandise fees generated by the comic strip.

Published on: April 23, 2009

What Happens to Your Online Accounts When You Die?

by Scott C. Soady

Most people in our high tech society have online accounts such as ebay, Pay Pal, Facebook, Linked in, etc. not to mention their online banking accounts, brokerage accounts, and others with passwords. Some people have photographs and documents stored in their computer and have passwords to get into their computer. What happens when someone dies and no one knows the passwords?

If you bank online or you conduct business on line, your family or your executor or trustee may need to access those accounts to close them, transfer funds, or conduct business. You may also want them to respond to emails, retrieve photos, or post a final blog if you have one.

Accessing online accounts can be difficult. Google for example requires proof of death and will provide access only to an executor or trustee. Facebook won’t provide access at all. Banking institutions and investment companies all have their own rules and regulations for access.

Published on: April 4, 2009

Unusual Will Contest before Death of Testator

by Scott C. Soady

In the category of “stranger than fiction,” a lawsuit has been filed in Arizona by a man who was cut out of his mother’s will. The problem is that she is not dead yet. Here in the San Dieigo Probate Court, will contests are filed but after the death of the testator (the individual who made a will before their death.)

The lawsuit filed by Robert Jaeger seeks $1 million in punitive and compensatory damages from his brothers and sisters on the basis that they interfered with an expected inheritance by persuading his mother to cut him out of her will. Jaeger claims that he took care of his mother for seven years and in return she promised to leave him her house when she died. His mother changed her will to leave her estate to her other children instead. The mother, Patricia English, says that her son was unemployed, spent her money, failed to find work, and became more and more demanding. In any case, she says, she had the right to decide who should inherit her house when she died. The siblings are fighting over English’s house which has $130,000 equity. She has no other assets.

In Arizona as in California, there is no cause of action for interfering with an expected inheritance. Only Maine and Florida have such causes of action while the person who executed the will is still alive. The court in Arizona has ruled however that the suit can proceed.

Published on: April 1, 2009

New Guide for Seniors Available in May

by Scott C. Soady

Seniors in San Diego as in other cities across California have many issues that are unique to them: Elder abuse, Medi-Cal planning and eligibility, social security, health care directives and powers of attorney, rights as a grandparent, and various estate planning issues.

There is a great publication published by the California State Bar that will be coming out in May. The guide called Seniors and the Law: A Guide for Maturing Californians is a comprehensive publication which addresses laws and legal issues relating to seniors.

The publication was first printed in 2003 but has been updated for the estimated 5.5 million residents of California who are over 60.