ESTATE PLANNING
DO YOU HAVE A WILL?
Abe Lincoln had no Will. The sixteenth president of the United States never expected to be assassinated. The result was Supreme Court Justice David Davis split his $110,296.80 in his estate into three parts for his wife and two sons.
Martin Luther King, jr had no Will. Years after his death the family founded a company for licensing of King’s image and speeches and his heirs fought and sued each other over numerous issues including whether the family should keep or sell King’s Nobel Peace Prize medal and personal Bible.
Steve McNair had no Will. A professional football player who played 11 seasons with the Tennessee Titans and two seasons with the Baltimore Ravens before retiring. He was murdered. Killed by his girlfriend in his sleep she then took her own life. McNair had written drafts of Wills but never signed one. After he died, the widow demanded McNair's mother move out or pay rent for the home she had been living in for 13 years. When McNair's mother could not pay, so she had to move out. McNair's widow then sued McNair's Mother for $54,363 worth of furniture and appliances she took with her from the home.
Sonny Bono had no Will. The former musician and U.S. Representative died in a skiing accident in 1998 and a dispute followed when his fourth wife Mary took over his congressional seat and became his estate’s administrator. A man named Sean Machu came forward in 1999 saying he was Bono’s illegitimate child and wanted part of his estate. His ex-wife Cher claimed that he owed her alimony. The lawyers and courts took control.
Lady Di DID have a Will. Her 1997 Will named her mother, her sister and the Bishop of London executors and instructed them to give equal shares of her estate to her two sons when they turned 25. Plus, her 17 godchildren were to receive certain possessions that belonged to the princess. But Di also had a “letter of wishes” that divided her estate differently. Because the letter wasn't properly incorporated into the Will, executors ignored the letter. So instead of getting $440,451, some heirs were limited personal items of furniture and clothing
Howard Hughes had lots of Wills. Billionaire Howard Hughes died in 1976 at the age of 70. Handwritten and other Wills surfaced. One claimed one-sixteenth of Hughes’ estate (estimated to be worth $2 billion) went to a gas station owner named Melvin Dummar. (A Nevada court declared that Will to be forged.) Others claimed different divisions. Court battles continued for years. In the end Hughes’ 22 cousins and his corporate shareholders inherited his wealth after the IRS collected large estate taxes.
ADVICE: The problems occur after your passing. A good estate plan will save your heirs lots of headaches.
====================================================================================
WHAT IS IN YOUR ESTATE?
Your estate does not include life insurance proceeds where somebody is designated the beneficiary.
It does not include real estate or other property that you hold jointly and with the right of survivorship. Upon your death that property automatically goes to the other party listed on the deed or property instrument.
Your estate does include things that you may not realize. For example:
* If you were to die in a automobile accident all of the lawsuit proceeds from that accident would go into your estate.
* If you died with a winning lottery ticket in your pocket all of the proceeds from that ticket would go into your estate.
* If you died after a close relative died and that relative left you money, your estate would have assets you were never even aware of.
In most cases those items have not been anticipated in the typical will.
If you do not have a will there is a scheme of distribution that will divide your property between your spouse and your surviving children, but it leaves a lot of things incomplete and causes a number of difficulties for your heirs. The advantage to having a will is that you can control your estate and, when necessary, make tax plans that save your estate from the government.
Another thing to consider at the time of estate planning is a Durable Power of Attorney in which a close loved one would have the authority to sign your name in the event you were in a coma or otherwise unable to conduct your business, cash your checks, etc.
Living Wills or Advanced Medical Directives may also be necessary to convey to your heirs whether or not you wish to be kept alive via artificial support and, if not, what things you would dedicate to prolonging your life and when you would say that the directive is to withhold additional services. Advance Medical Directives can go a long way in helping your loved ones not have to made those decisions during a very difficult time.
A properly reviewed estate would also have you make arrangements for funeral services, burial or cremation and other items that are extremely difficult on your heirs at the time of your passing. A will should be updated every couple of years to keep it current and a properly planned estate can help ease the pain and simply simplify matters for your loved ones at the time of your death.
Abe Lincoln had no Will. The sixteenth president of the United States never expected to be assassinated. The result was Supreme Court Justice David Davis split his $110,296.80 in his estate into three parts for his wife and two sons.
Martin Luther King, jr had no Will. Years after his death the family founded a company for licensing of King’s image and speeches and his heirs fought and sued each other over numerous issues including whether the family should keep or sell King’s Nobel Peace Prize medal and personal Bible.
Steve McNair had no Will. A professional football player who played 11 seasons with the Tennessee Titans and two seasons with the Baltimore Ravens before retiring. He was murdered. Killed by his girlfriend in his sleep she then took her own life. McNair had written drafts of Wills but never signed one. After he died, the widow demanded McNair's mother move out or pay rent for the home she had been living in for 13 years. When McNair's mother could not pay, so she had to move out. McNair's widow then sued McNair's Mother for $54,363 worth of furniture and appliances she took with her from the home.
Sonny Bono had no Will. The former musician and U.S. Representative died in a skiing accident in 1998 and a dispute followed when his fourth wife Mary took over his congressional seat and became his estate’s administrator. A man named Sean Machu came forward in 1999 saying he was Bono’s illegitimate child and wanted part of his estate. His ex-wife Cher claimed that he owed her alimony. The lawyers and courts took control.
Lady Di DID have a Will. Her 1997 Will named her mother, her sister and the Bishop of London executors and instructed them to give equal shares of her estate to her two sons when they turned 25. Plus, her 17 godchildren were to receive certain possessions that belonged to the princess. But Di also had a “letter of wishes” that divided her estate differently. Because the letter wasn't properly incorporated into the Will, executors ignored the letter. So instead of getting $440,451, some heirs were limited personal items of furniture and clothing
Howard Hughes had lots of Wills. Billionaire Howard Hughes died in 1976 at the age of 70. Handwritten and other Wills surfaced. One claimed one-sixteenth of Hughes’ estate (estimated to be worth $2 billion) went to a gas station owner named Melvin Dummar. (A Nevada court declared that Will to be forged.) Others claimed different divisions. Court battles continued for years. In the end Hughes’ 22 cousins and his corporate shareholders inherited his wealth after the IRS collected large estate taxes.
ADVICE: The problems occur after your passing. A good estate plan will save your heirs lots of headaches.
====================================================================================
WHAT IS IN YOUR ESTATE?
Your estate does not include life insurance proceeds where somebody is designated the beneficiary.
It does not include real estate or other property that you hold jointly and with the right of survivorship. Upon your death that property automatically goes to the other party listed on the deed or property instrument.
Your estate does include things that you may not realize. For example:
* If you were to die in a automobile accident all of the lawsuit proceeds from that accident would go into your estate.
* If you died with a winning lottery ticket in your pocket all of the proceeds from that ticket would go into your estate.
* If you died after a close relative died and that relative left you money, your estate would have assets you were never even aware of.
In most cases those items have not been anticipated in the typical will.
If you do not have a will there is a scheme of distribution that will divide your property between your spouse and your surviving children, but it leaves a lot of things incomplete and causes a number of difficulties for your heirs. The advantage to having a will is that you can control your estate and, when necessary, make tax plans that save your estate from the government.
Another thing to consider at the time of estate planning is a Durable Power of Attorney in which a close loved one would have the authority to sign your name in the event you were in a coma or otherwise unable to conduct your business, cash your checks, etc.
Living Wills or Advanced Medical Directives may also be necessary to convey to your heirs whether or not you wish to be kept alive via artificial support and, if not, what things you would dedicate to prolonging your life and when you would say that the directive is to withhold additional services. Advance Medical Directives can go a long way in helping your loved ones not have to made those decisions during a very difficult time.
A properly reviewed estate would also have you make arrangements for funeral services, burial or cremation and other items that are extremely difficult on your heirs at the time of your passing. A will should be updated every couple of years to keep it current and a properly planned estate can help ease the pain and simply simplify matters for your loved ones at the time of your death.
The Law offices of
PAUL BUCKWALTER
Brandermill Trade Center
13509 East Boundary Road, Suite E
Midlothian Va, 23112
804/744-8744
paultb@paulbuckwalter.com
PAUL BUCKWALTER
Brandermill Trade Center
13509 East Boundary Road, Suite E
Midlothian Va, 23112
804/744-8744
paultb@paulbuckwalter.com
The information contained herein is intended to entertain and inform on general principals of the law. It is not a substitute for personal legal advise. If you have a legal problem you should seek the advise of counsel.
Published by Paul T. Buckwalter - All Rights Reserved
Published by Paul T. Buckwalter - All Rights Reserved