- Wednesday, 20 November 2019 22:55
Finally, there is some estate planning news to write about. Gloria Cary was an American woman who was the second wife of the eccentric eighth Earl of Bathurst. When the Earl died in 2011, he left his home and surrounding real estate, valued at $17 million, to his son, and the rest of his estate to his widow.
Typically, his widow and son did not get along even though the couple had been married for more than 30 years. After the Earl’s death, the widow was forced to vacate the family home inherited by the son. She sued for permission to visit the home to view the family’s collection of heirlooms, but she was denied by her step-son.
When Gloria died last year, she left the bulk of her $41 million fortune to two interior designers while omitting her step-son entirely.
A few quick observations:
1. At least the son inherited a significant amount upon the death of his father and was not disinherited entirely.
2. Inheriting an English estate is a double edged sword because the maintenance costs can be stratospheric.
3. If the Earl of Bathurst (“Barmy Bathurst”) wanted to ensure his son received some of his fortune, he should have created a trust to benefit his wife with the remainder going to his son. Although a trust might have been a step too far for an eccentric.
4. Of course, if the son wanted to inherit more than the house, he should have acquiesced to his step-mom’s request to occasionally visit and wander around the property.
Photo credit: compendium of pics from Daily Mail
License: Fair Use/Education (from linked article)
- Wednesday, 13 December 2017 20:34
Limping to the end of the year while looking for celebrity news. Finally found some with respect to former teen heartthrob, David Cassidy, of Partridge Family fame. The will of the thrice divorced entertainer leaves his entire $150K estate to his son, Beau, from his third marriage. Cassidy specifically excluded his daughter from a previous relationship, actress Katie Cassidy, from the will. Meanwhile, a law firm which represented him has sued the estate for $100K of unpaid fees.
1. Cassidy is free to leave his assets to whom he wishes – he is not obligated to leave them to his out of wedlock daughter.
2. The law firm should be paid from the estate before beneficiaries receive any distributions.
3. $150K estate after 50 years in show business? Divorce and drugs are expensive habits.
Photo Credit: Facebook.com/Respect for Katie Cassidy
License: Fair Use/Education
- Wednesday, 11 October 2017 14:59
When unfunny comedian, Jerry Lewis, died last month, he was survived by 5 sons from his first marriage, his second wife (SanDee, a former Vegas dancer 25 years younger than him), and a daughter from his second marriage.
His 2012 will left his entire estate to his wife and daughter. He purposefully excluded his six sons (including his son who died of a heroin overdose in 2009) and their descendants. Lewis’ sons had long accused him of treating them cruelly with the deceased son claiming that he had beaten them viciously. When that son died in 2009, Lewis refused to pay for his funeral. Lewis is reportedly only worth several million dollars, but the value of his estate is in the movie rights he owns to his movies.
Several minor points:
1. Lewis was not obligated to leave anything to his sons.
2. It was smart of him to specifically exclude the descendants of the deceased son so someone cannot try to claim part of the estate by alleging to be an illegitimate grandchild.
3. I would have taken the under on an allegedly cruel man remaining married to a Vegas dancer with two capital letters in her name for 35 years.
Photo Credit: WireImage
License: Fair Use/Education
- Wednesday, 29 July 2015 20:53
Maurice Laboz was a NYC real estate investor worth $37 million when he died earlier this year. He left $10 million in trust for each of his daughters and provided that they will receive their inheritance when they reach 35. However, they may receive funds earlier if they abide by his wishes of signing a pre-nuptial agreement prior to marriage ($500K) and graduating from an accredited college and describing the use of trust funds distributed early ($750K). They will also receive a distribution of 3x their annual salary each April 15 and distributions for staying at home with children born in wedlock (3% of the trust value annually). He also disinherited his wife whom he was in the process of divorcing.
Several quick points:
1. Funded trusts are a great vehicle for disinheriting a spouse in the midst of a divorce proceeding. Otherwise, the estranged spouse is entitled to a percentage of the estate at death (1/3 in Ohio).
2. Incentive trusts such as Mr. Laboz’s are good for imposing one’s wishes and values from the grave upon one’s descendants.
3. Personally, I favor a trust clause that distributes 10% of my children’s inheritance to charity for each tattoo that they have, visible or not.