Probate

One effective way of avoiding probate is to make use of financial accounts that have a ‘pay-on-death’ feature. This feature, if used properly, allows you to avoid probate and distribute your assets directly to your heirs or loved ones as you designate. Upon your death, the beneficiary simply presents a death certificate to the financial institution and the assets can be paid directly to the beneficiary without having to incur the costs, or experience the delays, of probate administration. But … [Read more...] about Do You Know Who Will Receive Your Retirement Accounts?

With a narrative that was sufficiently compelling to inspire a Hollywood movie, Melvin Dummar has returned and launched yet another legal challenge designed to obtain a portion of the estate of the late Howard Hughes. Dummar’s claim to a portion of the Hughes estate rests on his tale of being a Good Samaritan when he rescued a wandering Hughes from the Nevada desert in 1967. Dummar, at the time a Utah service station owner, claimed that he picked up Howard Hughes along a desolate desert … [Read more...] about The Never Ending Will Contest

In California, there are some very good reasons for avoiding the probate administration process. My three favorite reasons include (i) the cost; (ii) the time involved; and (iii) the public nature of the proceedings. For most estates, probate administration costs generally run from four to eight percent of the gross value of the estate and frequently take at least eight months to complete. To avoid these problems, some individuals engaged in what I affectionately refer to as ‘backyard’ estate … [Read more...] about Can I Avoid Probate by Placing My Child on Title to my Assets?

You may remember the surprising news that the late Leona Helmsley left a $12 million bequest in her will for her Maltese dog named Trouble. With the large bequest, Helmsley’s will provided that Trouble would continue to enjoy the same opulent life even after Helmsley’s passing. In addition to the money, Helmsely’s will also provided that Trouble would be buried next to Helmsley in the family mausoleum. Helmsely’s will also set aside an additional $3 million for cleaning and maintenance of the … [Read more...] about Treated Like a Dog?

I lost my beloved father last week. With him my family lost a piece of our collective heart and soul. Relatively young and healthy, my father’s vicious illness was as swift as it was unexpected. A little over three weeks ago, my father returned from a short vacation with flu-like symptoms and a few days later checked into the hospital. So powerful was this disease that we almost lost my father twice in the first week after his diagnosis. Two weeks after his admission to the hospital, my father … [Read more...] about On a personal note … are you ready?

The shrinking values in the real estate market are truly frightening these days. I have received reports that values are falling less to approximately 25% of peak values (i.e. a 75% decline in value). I have even seen reports of homes being listed for as little as $100.00 in certain parts of the country. In recent weeks, I have encountered several situations where precipitous valuation declines impact the decision of whether to commence a probate proceeding. The typical situation involves a … [Read more...] about Does it make sense to file probate to save a failing asset?

A no-contest, or in terrorem, clause, is frequently used in wills, trusts and other estate planning documents to minimize the likelihood of a disgruntled beneficiary challenging the estate plan. The phrase ‘in terrorem’ is Latin meaning ‘to frighten’ or ‘terror’. The basic concept is that if a beneficiary launches an attack on the estate plan and is not able to convince a court to change it, then that beneficiary loses any gift under the estate plan. A typical no-contest clause might reduce an … [Read more...] about The Ultimate No-Contest Clause–Russian Style.

I was speaking with a dear friend recently who consulted me about a concern she had regarding “her” inheritance. She explained to me that her grandparents, who were quite wealthy, had always led her to believe that she would receive a substantial bequest. As it turned out, the entire estate had been left first to another relative with the unwritten ‘understanding’ that the remainder of it would be subsequently distributed among the grandchildren. Unfortunately, the manner in which the … [Read more...] about Adjusting Your Expectations

A fundamental principle in life is that things change; as our society becomes more interconnected and technologically advanced, the speed of change seems only to hasten. In response to this change, most of us regularly conduct annual reviews of important areas in our lives. For instance, most large employers review employees annually; many people schedule the traditional annual physical; and most financial advisors recommend annual portfolio reviews. But one area most people neglect a regular … [Read more...] about Parents Should Review Guardian Nominations Annually.