Building Legacies that Last Estate Planning and Elder Law

Under Pressure: David Bowie’s Estate Plan

Download-1“Under Pressure.” These two words were said by the iconic David Bowie along with Queen singer, Freddie Mercury. Sadly, Bowie died back on January 20, 2016 from liver cancer at the age of 69 in Manhattan, New York City. Many celebrities, including Kanye West and Madonna, reacted with deep sorrow because they had lost the “Chameleon of Rock.” Bowie’s legacy still lives on through his children, Lexi and Duncan, along with his wife and now widow, Iman.

Bowie, initially, left the rest of his residuary estate and the remainder of Iman’s trust to Duncan and Lexi. Lexi was also subjected to her own separate trust until the age of 25. After the age of 25, she would be able to possess all the trusts assets. In the case of Iman’s trust, it did qualify for a full marital deduction, which created Bowie’s estate taxes that were to be managed by the children’s shares of the residuary estate.

Even though Bowie was iconic, his estate plan did suffer some consequences. With the $100 million value of his estate, Bowie did not create lifetime trusts that would have benefited his children. If he had created that trust, his children would have been protected from creditors for either his or her lifetime. It would have also given Bowie the power to use his full GST exemption. Since he did not achieve this step, both Lexi and Duncan did not have a special power of appointment over the trust.

One other mistake that David Bowie made in his estate plan was that he did not institute the decanting procedure, which an authorized trustee, not the grantor, transfers assets from one trust into another trust which contains the necessary changes that will achieve the intended purpose. Since he did not use this process, Iman’s trust could not be transferred from one to another.

When creating an estate plan, make sure to use the decanting process. The decanting process can be a powerful tool for post- mortem estate planning and should always be considered whenever testamentary trusts are created. Don’t be under pressure! Create your estate plan today!

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.

Princess Diana’s Estate Plan

9aa3f79b8231f3c510cf05d1b718abbf“Family is the most important thing in the world.” Diana, Princess of Wales, was the most beloved soul that left the world too soon. When Princess Diana died on August 31, 1997, the whole world mourned because their queen was gone and her legacy of social work was cut way too short thanks to the paparazzi. Unfortunately, Lady Diana Spencer’s failure to have a proper estate plan came into play 17 years after her death.

Along with creating a will, Diana had created a Letter of Wishes. That letter contained the fact that ¾  of her jewelry and prize possessions were to be given to her sons, Prince William and Prince Harry and the ¼ would be given to her 17 godchildren. Unfortunately, this letter was not recognized and her godchildren only received one item of Diana’s estate. This letter went undisclosed for several years until it was revealed due to the outrage of the parents of the godchildren who were supposed to receive the ¼ of Diana’s estate.

According to the executors of her estate, they had filed a “variance” after her death which was supposed to distribute the money to her sons until they turned 30 which of course did not occur.

In Diana’s case, Personal Property that is valuable and important should be directly in a will or trust. Not a letter. If Diana had done this in her estate plan, there would be no questions about what the deceased individual wanted. Also, there would have been no variances. Even though Diana was the beloved princess of the world, by making the mistakes and causing much havoc in her family, her estate plan ended up in turmoil.

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.

 

 

 

Sonny Bono’s Estate Plan

“I’ve got you babe.” Those were the words that the beloved Sonny Bono said to Cher in 1965, 33 years before his tragic death in 1998 from a ski accident. Salvatore “Sonny” Bono was a comedian, a father, a singer, and also a congressman who appealed to to the younger generations as a figure of American singer- songwriters. His fame skyrocketed after he married his second wife, Cher in 1964 and produced a show, “The Sonny and Cher Show,” which featured even their own daughter Chaz(Formerly: Chastity) Bono, who is now a man.

Along with his career, his death also sparked some difficulty. Since he died without a will, his estate was even up for grabs, even for his second wife Cher. Cher sued Sonny’s fourth wife, Mary Bono, and the estate for $1.6 million dollars that was in unpaid alimony. That money consisted of: $25,000 per month for six months, $1,500 per month for child support, and $41,000 in attorney fees. Whether or not Cher collected this money is up for debate even to this day.

By not creating his will, Sonny’s legacy suffered drastically. It was all filled with legal fees and like before it is now up for grabs. Don’t make the same mistake that Sonny did. Create an 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.

 

Muhammad Ali’s Estate Plan Left A Legacy

“Float like a butterfly, sting like a bee.” This was said by no one other that the world’s most renowned heavyweight champion, Muhammad Ali. Ali sadly left this world back in 2016 due to complications with Parkinson’s disease, and his legacy lives on even to this day. With this legacy, he left behind approximately $80 million dollar estate to his wife, Yolanda.

Unfortunately for his children, they fought against their stepmother in order to retain the $6 million that they each deserved. Surprisingly, even though his own children despise one another, they are able to work together to make sure the money with Ali’s estate allocated effectively and evenly. His children even accused their stepmother of keeping Ali isolated from his children during his final days.

Besides Ali’s estate, his funeral proceedings went in accordance with the thorough details he laid down years before. Ali claimed that he wanted both his life and his death to become a teaching moment for younger audiences. From a traditional islamic funeral to being praised for being “The Greatest of All Time”, Ali’s legacy will never be forgotten. Even though his estate planning was not considered to be strong, the legacy and funeral proceedings went perfectly as planned.

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.

Is Death Better than Watching the Debates?

Mac-glasses[1]Many Americans can probably relate to retired trucker George Norman Davis who said he would rather die than watch the Presidential debates.

George Norman Davis was a retired veteran and long-haul trucker. While not famous in life, his obituary is giving him some fame on the Internet.

It tells how, on the day of the first Presidential debate between Hillary Clinton and Donald Trump, Davis proclaimed that he would rather die than watch the debate and promptly did so.

The Daily Mail reported this story in "He said he'd rather die than watch the debates… and he kept his word! Hilarious obituary of Pennsylvania trucker who worried 'the nation is going someplace in a handbasket'."

Everyone who watched any of the debates can probably relate to the sentiment. However, while there is humor in this particular story, it is also an indication of a trend. More and more people are using public obituaries to express the kind of personality and humor of their loved one.

More and more people are also writing their own obituaries and telling the tales about themselves they want to tell.

The Internet allows people all over the world to discover these obituaries and to share those they find interesting. That does mean people who would like a more traditional or private obituary need to make their wishes clear in a will or by letting their families know in another way.

Reference: Daily Mail (Oct. 20, 2016) "He said he'd rather die than watch the debates… and he kept his word! Hilarious obituary of Pennsylvania trucker who worried 'the nation is going someplace in a handbasket'."