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James Brown

Will James Brown’s Estate Finally Be Settled after 15 Years?

Will James Brown’s Estate Finally Be Settled after 15 Years?

The South Carolina Supreme Court in June finally began sorting out the litigation that has been part of Brown’s estate since his death. The court held that Brown was never legally married to his fourth wife, Tomi Rae Hynie, because she had not annulled a previous marriage.

Wealth Advisor’s recent article entitled “Might The Battle Over James Brown’s Estate Finally Be Coming To A Close After Nearly 15 Years” explains that the court’s decision weakens her claim to the estate. The estate has been valued to be worth between $5 million and $100 million. It’s the first real move forward in years. According to The New York Times, “the Supreme Court instructed the lower court to “promptly proceed with the probate of Brown’s estate in accordance with his estate plan,” which called for the creation of a charitable trust to help educate poor children.”

South Carolina law stipulates that Hynie, as Brown’s widow, would have had the right to a third of his estate’s value, no matter what his will instructed.

Hynie was married in 2001 to Javed Ahmed, a Pakistani man who already had three wives in his native country. Her lawyers argued that since Ahmed was a bigamist, their marriage was void. South Carolina’s lower courts agreed, holding that her marriage to Brown was valid.

However, the South Carolina Supreme Court disagreed. “All marriages contracted while a party has a living spouse are invalid, unless the party’s first marriage has been ‘declared void’ by an order of a competent court,” the Court explained.

Hynie’s counsel will be filing “a petition to reconsider and rehear the decision.”

Hynie is entitled as spouse to a share of Brown’s valuable music copyrights under federal law. She has already settled part of her dispute with the estate, agreeing to give 65% of any proceeds from her so-called termination rights—copyrights that, though once sold, can return to the songwriter or his heirs after several decades—to charity.

Brown’s will had bequeathed $2 million for scholarships for his grandchildren. The will said that his costumes and other household effects were to go to six of his children, and the remainder of the estate was to go to the charitable trust for the poor, called the “I Feel Good Trust.”

The South Carolina Supreme Court ruling is significant, because Brown’s 2000 will said, “Any heirs who challenged it would be disinherited. However, several of his children and grandchildren sued after his death,” notes The New York Times.

Reference: Wealth Advisor (July 20, 2020) “Might The Battle Over James Brown’s Estate Finally Be Coming To A Close After Nearly 15 Years”

Read other related articles at:

James Brown’s Estate Is Still In Turmoil 12 Years After His Death

Say It Loud: Fight Over James Brown’s Estate May Finally Be Drawing to a Close

Also, read one of our previous Blogs at:

Celebrity Estates: Battle Over Inheritances

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Will

What Happens When a Will Is Challenged?

What Happens When a Will Is Challenged?

What happens when estate planning doesn’t go according to plan? A last will and testament is a legally binding contract that determines who will get a person’s assets. However, according to the article “Can you prevent someone from challenging your will?” in the Augusta Free Press, it is possible for someone to bring a legal challenge.

Most will contests are centered around five key reasons:

  • The deceased had a more recent will.
  • The will was not signed voluntarily.
  • The deceased was incapacitated, when she signed the will.
  • The will was not signed in front of the right number of witnesses.
  • The will was signed under some kind of duress or mental impairment.

What is the best way to lessen the chances of someone challenging your will? Take certain steps when the will is created, including:

Be sure your will is created by an estate planning attorney. Just writing your wishes on a piece of paper and signing and dating the paper is not the way to go. Certain qualifications must be met, which they vary by state. In some states, one witness is enough for a will to be properly executed. In others, there must be two and they can’t be beneficiaries.

The will must state the names of the intended beneficiaries. If you want someone specific to be excluded, you’ll have to state their name and that you want them to be excluded. A will should also name a guardian, if your children are minors.  It should also contain the name of an alternate executor, in case the primary executor predeceases you or cannot serve.

What about video wills? First, make a proper paper will. If you feel the need to be creative, make a video. In many states, a video will is not considered to be valid. A video can also become confusing, especially if what you say in the paper will is not exactly the same as what’s in the video. Discrepancies can lead to will contests.

Don’t count on those free templates. Downloading a form from a website seems like a simple solution, but some of the templates online are not up to date. They also might not reflect the laws in your state. If you own property, or your estate is complex, a downloaded form could create confusion and lead to family battles.

Tell your executor where your will is kept. If no one can find your will, people you may have wanted to exclude from your estate will have a better chance of succeeding in a will challenge. You should also tell your executor about any trusts, insurance policies and any assets that are not listed in the will.

Don’t expect that everything will go as you planned. Prepare for things to go sideways, to protect your loved ones. It is costly, time-consuming and stressful to bring an estate challenge, but the same is true on the receiving end. If you want your beneficiaries to receive the assets you intend for them, a good estate planning attorney is the right way to go.

Reference: Augusta Free Press (July 12, 2020) “Can you prevent someone from challenging your will?”

Read more related articles at:

What Are the Grounds for Contesting a Will?

How to Contest a Will in Probate Court

Also, read one of our previous Blogs at :

Can I Prevent a Will Contest After I’m Gone?

Click here to check out our Master Class!

Roth IRA Conversion

What COVID-19 Does to Roth Conversions

What COVID-19 Does to Roth Conversions

With a combination of lowered 2020 tax liability, the potential for future tax increases and potentially lower portfolio values, we are in uncharted financial waters. However, all of these factors may make a Roth conversion more attractive than ever, according to the article “Covid-19 and the CARES Act enhance the Roth conversion game” from the Jacksonville Business Journal.

A quick look first at essentials of the traditional and Roth IRAs:

Tradition IRA contributions are tax deductible.

  • Growth inside the account is tax-deferred,
  • Qualified distributions are taxed as ordinary income, and
  • Required minimum distributions must begin at age 72.

Roth IRA contributions are not tax deductible.

  • Growth inside the account is tax free,
  • Qualified distributions are tax free, and
  • There are no required minimum distributions.

Roth IRAs are an essential part of both estate and retirement planning. Converting a traditional IRA to a Roth IRA lets you decide when you or your beneficiaries pay taxes. Convert all of your IRA to a Roth, and pay the taxes up front, based on the year the conversion is made. If you have a low-income year, and the value of your IRAs is low, that’s the time to do the conversion.

Just be mindful that making this move for a large amount of money could potentially move you into a higher tax bracket. Being strategic and moving a portion of your IRA could make more sense, especially if you expect that you’ll be in a higher tax bracket during retirement, or if you anticipate that your ultimate beneficiary may be in a higher tax bracket within ten years following their inheritance. (As a result of the SECURE Act, inherited IRA accounts must be emptied within ten years after they are received.)

You’ll also need a plan to pay the taxes on that conversion. In a perfect world, those taxes would be paid from funds outside of your retirement accounts. If the only way to pay this tax is by using funds from your IRA, you can have the funds withheld during the conversion. Be sure to run the numbers before doing the conversion. If you pull money from your IRA account to do the conversion, there will be less money to grow long-term for you, and it will be included in your taxable income for the year.

We all like something for nothing, but there are costs to Roth conversions. The five-year rule requires that a Roth needs to exist for five years, before you can take out money tax free. You’ll need to be sure that you have enough cash on hand to live on for five years after the conversion. However, that’s not all. There are a number of different variations on the five-year rule, depending on your situation. If you are under age 59½ and take a distribution of profits before the five years, you will get hit with a 10% penalty without an allowable exception on the amount you converted. An experienced estate planning attorney will be able to help you make a strategically sound decision.

Reference: Jacksonville Business Journal (July 13, 2020) “Covid-19 and the CARES Act enhance the Roth conversion game”

Rad more related articles at:

Opinion: COVID-19 crisis creates a perfect opportunity for Roth IRA conversions

Roth IRA Conversions Rise Amid Pandemic

Also read one of our previous Blogs at :

Are You Making the Most of the SECURE and CARES Acts?

Click here to check out our Master Class!

 

funding a trust

Why Is Trust Funding Important in Estate Planning?

Why Is Trust Funding Important in Estate Planning?

Trust funding is a crucial part of estate planning that many people forget to do. If done properly with the help of an experienced estate planning attorney, trust funding will avoid probate, provide for you in the event of your incapacity and save on estate taxes, says Forbes’ recent article entitled “Don’t Overlook Your Trust Funding.”

If you have a revocable trust, you have control over the trust and can modify it during your lifetime. You can also fund the trust while you’re alive. This will save your family time and aggravation after your death.

You can also protect yourself and your family, if you become incapacitated. Your revocable trust likely provides for you and your family during your lifetime. You are able to manage your assets yourself, while you are alive and in good health. However, who will manage the assets in your place, if your health declines or if you are incapacitated?

If you go ahead and fund the trust now, your successor trustee will be able to manage the assets for you and your family if you’re not able. However, if a successor trustee doesn’t have access to the assets to manage on your behalf, a conservator may need to be appointed by the court to oversee your assets, which can be expensive and time consuming.

If you’re married, you may have created a trust that has terms for estate tax savings. These provisions will often defer estate taxes until the death of the second spouse, by providing income to the surviving spouse and access to principal during her lifetime. The ultimate beneficiaries are your children.

You’ll need to fund your trust to make certain that these estate tax provisions work properly.

Any asset transfer will need to be consistent with your estate plan. Ask an experienced estate planning attorney about transferring taxable brokerage accounts, bank accounts and real estate to the trust.

You may also want to think about transferring tangible items to the trust and a closely held business interests, like stock in a family business or an interest in a limited liability company (LLC).

Reference: Forbes (July 13, 2020) “Don’t Overlook Your Trust Funding”

Read more related articles at:

Understanding Funding Your Living Trust

What Is Funding a Trust?

Also read one of our previous Blogs at :

10 Reasons Why You Need A Trust

Click here to check out our Master Class!

Nursing home

Where are the Worst Nursing Homes in America?

Where are the Worst Nursing Homes in America?

Think finding a nursing home for a loved one or yourself is a barrel of fun? Think again. It’s a very stressful task. Unfortunately, poor health, safety and sanitary conditions are common issues, according to a recent U.S. Senate report.

MoneyTalks News’ article entitled “The Worst Nursing Homes in America Are Revealed” says the report claims that in the past the federal government has failed to accurately identify many facilities that provide poor care.

These poorly graded nursing homes haven’t shown up on a shorter list of homes that get higher federal scrutiny because of a record of poor care, according to the report.

The two senators who released the report — Senators Bob Casey (D-Pa) and Sen. Pat Toomey (R-Pa)— also released a list of the close to 400 homes with a record of providing subpar care.

The list of problem nursing homes based on the states where they’re located is found at the end of the senators’ report.

All nursing homes on the list are classified as either participants in or candidates for the Special Focus Facilities program of the Centers for Medicare and Medicaid Services (CMS).

CMS defines Special Focus Facilities as “nursing homes with a record of poor survey (inspection) performance on which CMS focuses extra attention.”

That program looks at care facilities that “substantially fail” to meet required care standards and resident protections permitted by the federal Medicare and Medicaid programs.

In the past, only participants in the Special Focus Facilities program were identified.

The reason why all of these facilities weren’t identified in the past is, according to a report by The Associated Press, “Budget cuts appear to be contributing to the problem, by reducing money available for the focused inspections that are required for nursing homes on the shorter list, according to documents and interviews.”

The Associated Press says that roughly 1.3 million Americans are nursing home residents, who reside in one of more than 15,700 nursing home facilities.

Reference:  MoneyTalks News (July 23, 2019) “The Worst Nursing Homes in America Are Revealed”

Read more related articles at:

Which States have the Best and Worst Nursing Homes

These Are the Worst Nursing Homes in the U.S.

Also, read one of our previous Blogs at:

Will the Sunshine State Crack Down on Crimes against the Elderly?

Click here to check out our Master Class!

Picasso’s Sole Heir Continues to Sell Artwork

 

Picasso’s Sole Heir Continues to Sell Artwork

The great artist was also known for the many women he was involved with, but he only married two of them, says a recent article that asks “Who are Picasso’s heirs? Auction at Sotheby’s reignites dispute,” appearing in The Wealth Advisor. Officially, there is only one legitimate heir to Picasso’s vast estate, but that wasn’t settled until after his death.

Picasso’s first child was Paulo, born to Olga Khokhlova, a famous Russian dancer. They wed in 1918, during World War I. Paulo would have been an heir, but he died in 1975. Picasso fathered other children outside of wedlock, including Paloma in 1940, Claude in 1947, and Maya in 1935. Only after their father’s death and legal battles, were Picasso’s grandchildren recognized as rightful heirs to part of his inheritance.

Long-standing disputes between Picasso’s second wife, Jaqueline Roque, and the children from his previous lovers went from slow simmer to boil after his death in 1973. Picasso had married Roque in 1961, after Khokhlova had died. He was 80 and had never divided his estate or did any estate planning. He left an enormous empire—villas, artwork and other possessions—with no plan and no will.

After his death, a famous Parisian auctioneer was commissioned to log all of his artwork, creating a list for the French government. The task took from 1974 to 1981.

The entire estate was estimated to be worth 3.75 billion francs, including $1.3 million in gold, $45 million in cash and a personal art collection valued at 1.4 billion francs. The collection included many pieces created by friends like Matisse, Miro and Cezanne.

One of the many problems he left for his heirs: an inheritance tax of several million francs on his property. To pay his taxes, 3,800 artworks became state property and instead of belonging to his heirs, they are now in the Picasso Museum in Paris. The museum has the largest collection of Picasso’s work. However, that might not have been his or his heirs’ intention.

Picasso’s granddaughter, the daughter of his eldest son Paolo and the only surviving relative by marriage, Marina Ruiz-Picasso, said that the state took a large selection of artwork, and the rest was raffled off to the individual heirs like a lottery.

She wrote a book about being his granddaughter, and it was not flattering. She said that his father’s work “demanded human sacrifices.” Needless to say, she had a difficult relationship with her famous grandfather. For many years, she left his artwork untouched in storage. However, in recent years, she has auctioned off many paintings and drawings, earning millions from the sales.

An online auction of more than 200 pieces, including drawings, paintings and gold medallions, took place in mid-June at Sotheby’s. Marina Ruiz-Picasso is one of the wealthiest women in Switzerland and lives in a villa on Lake Geneva.

Reference: The Wealth Advisor (June 16, 2020) “Who are Picasso’s heirs? Auction at Sotheby’s reignites dispute”

Read more related articles at:

Marina Picasso: selling my grandfather’s art is a way of helping me heal

Also, read one of our previous Blogs at:

You’ve Received an Inheritance. Now What?

Click here to check out our Master Class!

PPOA types

What are the Different Kinds of Powers of Attorney?

 

What are the Different Kinds of Powers of Attorney?

If I asked you what you thought is the most important document in your estate plan, you may say it’s your last will and testament or your trust. However, that’s not always the case. In many situations, the most important planning document may be a well-drafted power of attorney, says The Miami News-Record’s recent article entitled “Power of attorney options match different circumstances.”

When a person can’t make his or her own decisions because of health, injury, or other unfortunate circumstances, a power of attorney (POA) is essential. A POA is implemented to help their loved ones make important decisions on their behalf. It helps guide decision-making, enhances comfort and provides the best care for those who can’t ask for it themselves. A POA permits the named individual to manage their affairs.

To know which type of POA is appropriate for a given circumstance, you should know about each one and how they can offer help. There are five POA forms.

Durable and Non-Durable Power of Attorney. This is the most common. These leave a person with full control of another person’s decisions, if they’re unable to make them. A Durable POA continues to be in effect when you are incapacitated. That is what the “durable” part means. A Non-Durable POA is revoked, when you become incapacitated. Be sure you know which version you are signing.

Medical Power of Attorney. Especially in a hospice setting, it permits another person to make medical decisions on the patient’s behalf, if they lose the ability to communicate. This includes decisions about treatment. In this situation, the POA takes the role of patient advocate, typically with the presiding physician’s consent.

Springing Power of Attorney. This POA is frequently an alternative to an immediately effective POA, whether it durable or non-durable. Some people may not feel comfortable granting someone else POA, while they’re healthy. This POA takes effect only upon a specified event, condition, or date.

Limited Power of Attorney. This POA provides the agent with the authority to handle financial, investment and banking issues. It’s usually used for one-time transactions, when the principal is unable to complete them due to incapacitation, illness, or other commitments.

If you don’t have a POA, ask a qualified elder law or estate planning attorney to help you create one. If you already have a POA, review it to be sure it has everything needed, especially if you have a very old POA or one that was drafted in a state other than the one in which you reside.

Reference: The Miami (OK) News-Record (July 7, 2020) “Power of attorney options match different circumstances”

Read more related articles at:

Powers of Attorney Come in Different Flavors

4 Types of Power of Attorney: What You Should Know

Also, read one of our previous Blogs at:

The Second Most Powerful Estate Planning Document: Power of Attorney

Click here to check out our Master Class!

Leaving a Legacy

Estate Planning Is a Gift and a Legacy for Loved Ones

Estate Planning Is a Gift and a Legacy for Loved Ones

 

Without an end of life plan, a doctor you’ve never even met might decide how you spend your last moments, and your loved ones may live with the burden of not knowing what you would have wished. These are just a few reasons why “End-Of-Life Planning is a ‘Lifetime Gift’ To Your Loved Ones,” as discussed in a recent article from npr.org.

It’s important to recognize that planning for the end of your life is actually not all about you. It’s about the ones you love: your parents, spouse or your children. They are the ones who will benefit from the decisions you make to prepare for the end of your life, and life after you are gone. It is a gift to those you love.

So, what should you do?

Start by preparing to have an estate plan created. If you have an estate plan but haven’t reviewed it in the last three or four years, find it and review it. If you can’t find it, then you definitely need a new one. An estate planning attorney can help you create an estate plan, including a will and other documents.

In the will, you name an executor, someone who you trust completely to carry out your directions. Some people choose a spouse or adult child to be their executor. It’s a lot of work, so pick someone who is smart, organized and trustworthy. They’ll be in charge of all of your financial assets and communicating how the estate is distributed to everyone in your will.

Create an inventory. This includes things that are of financial and sentimental value. People fight over sentimental things, so giving your family specific directions may avoid squabbles.

If you have children under age 18, name a guardian for them. This should be a person who knows your children and will raise them with same values as you would.

Pets are often overlooked in estate planning. If you want to protect your pet, in many states you can create a pet trust. It includes funds that are to be used specifically for care for your pet, and a trustee who will be responsible for ensuring that the funds are used as you intended.

Digital accounts are also part of your property, including social media, online photos, everything in your online cloud storage, credit card rewards, email, frequent flyer miles and digital assets.

Make sure your will is executed and in compliance with the laws of your state. If your will is found to be invalid, then it is as if you never made a will, and all your planning will be undone.

You also need an advance directive, a legal document that covers health care and protects your wishes at the end of life. One part of an advance directive gives a person medical power of attorney, so they can make decisions for you if you cannot. The other part is a living will, where you share how you want to be cared for and what interventions you do or don’t want if you are near death.

Reference: npr.org (June 30, 2020) “End-Of-Life Planning is a ‘Lifetime Gift’ To Your Loved Ones”

Read more related articles at: 

Leaving a Legacy Behind: Planning for Modest Estates

How Do You Want to Be Remembered?

Also, read one of our previous Blogs at:

Leaving a Legacy Is Not Just about Money

Click here to check out our Master Class!

 

Orlando Cepeda

Baseball Champion Sues Daughter-In-Law, denies having Dementia

Baseball Champion Sues Daughter-In-Law, denies having Dementia

Eighty-two-year-old Giants great Orlando Cepeda filed a lawsuit against his daughter-in-law Camille Cepeda alleging elder financial abuse, fraud and infliction of emotional distress, as reported in the article “Giants great Orlando Cepeda denies having dementia, sues daughter-in-law for fraud” from the San Francisco Chronicle. He also accused her of negligence in handling his finances, after giving her power of attorney in 2018.

Cepeda accuses Camille of spending his money on personal expenses, including lease payments on a $62,000 Lexus, a Louis Vuitton handbag, expensive wine and taking out at least $24,000 in cash from his accounts. It also claims that she has placed all of his baseball memorabilia in a storage locker and will not give him the key or the location of the locker. That includes his National League Most Valuable Player trophy, which he wants back.

This is the latest news from a dispute that began after the Hall of Famer married his second wife, Nydia. They had two of Cepeda’s four sons, including Ali Cepeda, who is married to Camille. The parents are now not speaking to their son, and some of the brothers, four in total, have taken sides and are not speaking to each other.

Cepeda granted his daughter-in-law power of attorney in April 2018, two months after he suffered a heart attack and irreversible brain damage caused by oxygen deprivation. She was to have access to his accounts and pay his bills. Before the heart attack, she had handled his financial and business affairs.

On May 29, Camille filed a petition with the court seeking conservatorship of Cepeda, stating that he has dementia and cannot make his own financial decisions. Two of Cepeda’s sons, including Camille’s husband Ali, filed papers supporting her petition.

In Cepeda’s response, he cited two neuropsychological reports, including one done in May, that declared that he was fit to make his own medical decisions and understands all but the most complex financial issues. Cepeda says that his daughter-in-law filed for conservatorship to cover up the fraud that he is alleging in the lawsuit. He says that he does not need a conservator, and if anyone should have that role, it would be his wife Nydia.

The lawsuit filed by Cepeda offers a glimpse into why he believes she wants conservatorship, saying he doesn’t have the capacity to understand the nature and consequences of his remarriage, nor his decision to remove Camille as power of attorney and grant it to Nydia.

The suit alleges that Camille was opposed to the marriage from the start and even suggested they stage a fake ceremony that would not be legally sanctioned.

Cepeda’s lawsuit seeks damages, legal fees and demands that Camille return his memorabilia and all financial records she has allegedly refused to provide to account for how she handed his money. The suit also cites a $62,000 withdrawal to pay Cepeda’s tax bill, which was not actually paid. The filing says she was negotiating with the IRS, but she will not provide the documentation that he needs to settle with the government. Nor did she pay a medical bill for $6,800, although she did cash a check from the insurance company that was sent to pay for it.

Cepeda remains hopeful that the entire matter may be settled, before the case returns to court.

“It’s very painful,” Cepeda told a reporter. “I love my family. I love my kids. But this is life. You have to do what you have to do.”

Reference: San Francisco Chronicle (June 26, 2020) “Giants great Orlando Cepeda denies having dementia, sues daughter-in-law for fraud”

Read other related articles at:

Giants great Orlando Cepeda denies having dementia, sues daughter-in-law for fraud

10 Dangers of Denial: A Warning to Dementia Caregivers

Also, read one of our previous Blogs at:

Why is an Advance Directive so Important with Dementia?

Click here to check out our Master Class!

covid 19 long term care

Does Long-Term Care Impact COVID-19 Infection Rates?

Does Long-Term Care Impact COVID-19 Infection Rates?

The National Investment Center for Seniors Housing and Care (NIC) say that research supports the finding that keeping older Americans in apartments of their own may be saving many of them from COVID-19. That’s a summary of results from a survey of more than 100 senior housing and care operators.

Think Advisor’s recent article entitled “LTC Type Has Big Effect on COVID-19 Infection Rates: Provider Survey” explains that some participants provide more than one type of long-term care (LTC) services.

The sample includes 56 assisted living facility managers and 29 nursing home managers, as well as providers of some other types of services.

The assisted living facility managers said that they’d tested 22% of the residents as of May 31, and only 1.5% had confirmed positive, or suspected positive, COVID-19 tests.

The nursing home managers tested 34% of their residents.

Roughly 6.7% of the residents tested had confirmed or suspected positive coronavirus tests.

Analysts at the Foundation for Research on Equal Opportunity believe that, as of June 19, approximately 43% of the people who’ve died from COVID-19 in the U.S. have been in nursing homes and assisted living facilities.

Many seniors with private long-term care insurance (LTCi) policies, short-term care insurance policies, or life insurance policies, or annuities that provide LTC benefits attempt to use the policy benefits to stay at home as long as possible, or to live in the least restrictive possible LTC setting.

The NIC survey results support the finding that access to private LTCi and LTC benefits may have protected some insureds from the COVID-19 outbreak.

Reference: Think Advisor (June 29, 2020) “LTC Type Has Big Effect on COVID-19 Infection Rates: Provider Survey”

Read more related articles at:

COVID-19’s Impact on Long-Term Care

Epidemiology of Covid-19 in a Long-Term Care Facility in King County, Washington

Also, Read one of our previous Blogs at:

How Will Long-term Care Be Priced after the Pandemic?

Click here to check out our Master Class!

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