Building Legacies that Last Estate Planning and Elder Law

John Lennon’s Estate Plan

John Lennon, a beloved songwriter and singer from the band The Beatles’, was murdered tragically at the age of 40 in 1980. John Lennon always had the motivation to change the world and to imagine a life without destruction. With the backup support from his wife, Yoko Ono, Lennon became a voice for the people of the world. Instead of naturally giving his son Julian full control over his estate like he did at first, Yoko Ono got full control over Lennon’s original song rights and his image. Unfortunately, Lennon’s estate plan became sad just like a ballad due to his son Julian’s fury over his estate. Sixteen years after Lennon had passed away, Julian sued Ono for a larger part of his father’s estate. Eventually, it was settled completely in 1996 and Julian received 20 million in English pounds after the long and limitless legal battle versus Yoko Ono. Some of the lessons that can be learned from Lennon’s estate plan include: Don’t leave your children out of will, Create Steps in order to make sure each one of your heirs receives their part, and Create an Additional Trust just in case your child gets left out. By using this advice, you can avoid family feuds and will be able to make sure your estate plan is executed smoothly.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients,Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Lessons From Paul Walker’s Estate Plan

Paul Walker, an actor in the movie franchise Fast and Furious, sadly died at age 40 in a car accident. Besides being part of on of the greatest movie franchises every produced, Walker made the smart move of creating an estate plan unlike other celebrities like Prince and Amy Winehouse, who didn’t have a pleasant ending with probate court. Besides creating an estate plan, there were also lessons to be learned from his estate plan. These lessons include: Trusts can be useful, Trusts need to be fully funded during your lifetime to be the most effective, It is important to name a guardian if you have minor children, Start your estate planning early, and Estate plans should definitely be updated. When I say that Trusts can be useful, it means that a trust is an estate-planning tool that goes beyond a normal will. In Paul Walker’s case, he did have one. By having a trust, you can take control of your asset distribution and avoid going to probate court. When you create a trust, make sure you have a good estate- planning attorney. By the fact that Trusts need to be fully funded during your lifetime to be the most effective, don’t make the mistake that Paul Walker did which is have $25 million in assets without funding his trust. When it comes down to the Importance of Naming a Guardian, especially if you have minor children, it is crucial. If you don’t have a guardian set in place in your will, then the probate court decides. Also, by Starting an Estate Plan early, you can avoid the risk of having no will at the end. According to an article by Martison and Beason, “Creating a will and other estate planning documents is not only for the elderly. In fact, you can start right now. The last crucial lesson that should be taken into account when creating an estate plan is that Your Estate Plan should be updated. If your net worth of the estate either increases or decreases, make sure than your estate plan includes those facts. If you follow these steps, you are guaranteed to have a successful and well thought out estate plan.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients,

Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

The Great Harry Houdini’s Estate Plan

 

Harry Houdini, an escape artist, was most known magician of the 20th century. He amazed his crowds with tricks such as The Overboard Box Escape and the East Indian Needle Trick. After Houdini died from complications due to a ruptured appendix on October 31, 1926, his estate plan was and still remains one of the best. In 1924, Harry had created a 23 clause long will that was detailed to the max and updated just one year after. In his great will, Houdini gave $500 dollars to his three assistants, $1000 to the Society of American Magicians, and the rest of his estate portions would be liquidated and distributed to each member of his family over periods of time. Two unique aspects of his estate included that: 1/6th of the estate should go to his wife, and whoever received a portion of his estate must have been confirmed according to the Jewish law and traditions. Along with the liquidation and separating his money, he also gave his theatrical effects and tricks to his younger brother, and up and coming magician, Theodore, relying on the fact that he should not share it to the world. For his most valuable books, Houdini gave them all away to the Library of Congress for safekeeping. Even though Harry’s estate plan stated that each member of his family should receive a portion, Sadie Weiss, Houdini’s sister-in-law, received none due to the fact that he disliked her for marrying his one brother, Nathan, and then his younger brother Leopold. For his wife Beth, she was told to perform a séance until she could finally contact him. Along with being the Best Magician around, Harry Houdini had tricks up his sleeve especially in his estate plan.

Harry Houdini, an escape artist, was most known magician of the 20th century. He amazed his crowds with tricks such as The Overboard Box Escape and the East Indian Needle Trick. After Houdini died from complications due to a ruptured appendix on October 31, 1926, his estate plan was and still remains one of the best. In 1924, Harry had created a 23 clause long will that was detailed to the max and updated just one year after. In his great will, Houdini gave $500 dollars to his three assistants, $1000 to the Society of American Magicians, and the rest of his estate portions would be liquidated and distributed to each member of his family over periods of time. Two unique aspects of his estate included that: 1/6th of the estate should go to his wife, and whoever received a portion of his estate must have been confirmed according to the Jewish law and traditions. Along with the liquidation and separating his money, he also gave his theatrical effects and tricks to his younger brother, and up and coming magician, Theodore, relying on the fact that he should not share it to the world. For his most valuable books, Houdini gave them all away to the Library of Congress for safekeeping. Even though Harry’s estate plan stated that each member of his family should receive a portion, Sadie Weiss, Houdini’s sister-in-law, received none due to the fact that he disliked her for marrying his one brother, Nathan, and then his younger brother Leopold. For his wife Beth, she was told to perform a séance until she could finally contact him. Along with being the Best Magician around, Harry Houdini had tricks up his sleeve especially in his estate plan.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients,

Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Prince Estate Must Sell Property To Pay Estate Tax

Some of the mystery about what will happen to Prince’s property has begun to clear up as his estate has asked for permission to sell some of his real estate holdings.

It has been estimated that the total estate tax bill that Prince’s estate will have to pay will be in the neighborhood of $150 million. The bill is that high because Prince did not have an estate plan that accounted for either the federal estate tax or the Minnesota estate tax.  Like Minnesota, Maryland estate tax is lower than the federal at $2 million.  This estate tax threshold includes the entire value of your house, without regard to the  the size of your mortage. With the high property values for housing in Maryland, life insurance and retirement accounts, many middle class Maryland families, who do not do Maryland estate planning, may force heirs to sell assets, just to make Maryland estate tax payments.

Since Prince died without an estate, there was alot  of speculation that some of the musician’s estate would need to be liquidated to pay the tax, but what portions of his estate would be sold has not been known.

It now appears that some of what will be sold includes the musician’s real estate holdings, as TMZ reports in “Prince Everything Must Go…Estate Ready to Dump Properties.”

The special administrator for the estate has filed a motion with the court seeking permission to sell some of the real estate and says it will not accept an offer that is less than 90% of fair market value. The musician is known to have had real estate holdings in several different states, but which properties might be sold has been sealed.

Ultimately, the judge will have to approve of the plan to sell before the properties are listed.

If the judge approves the plan, it will likely not be the last things of the musician’s that will be sold. The estate tax bill is high enough that much more will likely need to be liquidated in the next few months so the estate can pay the taxes on time and avoid fines and penalties.

Reference: TMZ (Aug. 1, 2016) “Prince Everything Must Go…Estate Ready to Dump Properties.”

Mistakes That Aretha Franklin Made In Her Estate Plan

Aretha Franklin, just like her fellow performer Prince, was undoubtedly talented beyond her years. Unfortunately, she did not have a will set up that would enable her loved ones to get what they deserved, including her child Clarence, who is 63 years old, that has special needs that require attention. If you follow in this path just like Franklin, the disbursements of money could be delayed, very detrimental family disputes may arouse, your estate as a whole may require extra taxes, and ultimately, your financial life could become a public record! If you have a child that requires special attention and you don’t have a will, your child will not receive any government benefits. If you don’t have a will or a trust, get one written up before it is too late! If you don’t follow through like Aretha did, your estate and probate deal will become public, not private.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients,

Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

How Michael Jackson’s Estate Plan Was A Success

Michael Jackson, the King of Pop culture, not only left behind such a legacy but also left behind a great estate plan. He made the sensible choice unlike Prince, Aretha Franklin, and Whitney Houston. With the help of his chief executor of his estate both his entertainment attorney John Branca and his music executive John McClain, he left an estimated over $500 million value of assets to his heirs. By having this money, his heirs, under Jackson’s will, his legacy be protected. In order for him to create this smart and sensible estate plan, he had to follow the steps which include: Writing A Will, Considering A Living Trust, Naming A Guardian, and Assembling A Good Team.

By Writing A Will, without confrontation between siblings, he ensured that his instruction for dividing his property were followed after he died. By Considering A Living Trust, it spared his heirs the hastle of going through probate court- an expensive and prolonged legal process.

By Naming A Guardian, for his kids, he ensured the right people would protect them.

By Assembling A Good Team, he was able to make sure his heirs got what he wanted them to have instead of setting a prolonged, expensive family fight in court. According to a close correspondent to the King of Pop, “He put two people in charge of the will and trust who he felt were sage, mature, and had a great deal of expertise in how to handle what are probably considerable assets. He couldn’t have put his estate in a better position.”

If you follow these steps, you will be able to achieve what Michael Jackson did, which is a “Good Estate Plan.” Overall, the bottom line is that Estate Planning is important and you should have one in place, just like Michael Jackson did. It will serve you well in the future and protect your family, future heirs and your business.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.