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Even Rappers Need Wills (and Life Insurance, Trusts, and Condoms) Pt. 3

I previously blogged about rapper Nate Dogg who died in 2011 survived by 6 children of unascertainable ages and different mothers.  His estate is back in the news again because the mother of one of his children filed a claim against his estate for unpaid child support from the date of the child’s 2006 birth, plus support since Dogg’s death in 2011.   Two other women, one of whom also has  a child Dogg fathered in 2006, are arguing in court over the amount of support they are supposed to receive from his estate.

Several points:

1.  In Ohio, claims against an estate must be filed within six months of the date of death.  The claim for Dogg’s unpaid back support would be invalid due to untimely filing.

2.  In Ohio, child support obligations terminate at death.  Adding money for post-death support to an already late claim just makes the claim doubly improper.

3.  Dogg’s children are entitled to social security payments until they turn 18.

4.  For divorced couples, a life insurance policy is recommended to cover any future child support payments.

5.  Dogg could have established a trust to provide for his children upon his death.   However, that would have required foresight and planning.  For a guy who did not make child support payments nor who wore a condom, such planning would be inconceivable.

Into the Ground, Then into Thin Air

A Pennsylvania attorney and his wife, a successful dentist, perished in a private plane crash in 2007. They had no children so they left their assets to various relatives in their wills.  The estates were comprised of a law practice, dental practice, various real estate holdings, and medical businesses in South Carolina and initially estimated to be worth $40 million.  After six years and a will contest action, the estate has incurred administrative fees of $3.75 million and has $3 million remaining.

Several points:

1.  With their varied investments, the couple should have used a trust to minimize probate administration expenses.

2. Legal and medical practices are personality dependent and are not worth much without the contribution of the individual who built the practice.

3.  $3 million left after an initial $40 million estimate?  The 2008 financial crash was brutal on everyone.

4.  Private planes are known as doctor and lawyer killers for a reason.

Charitable Conflict

The estate of an elderly, childless  Fresno woman was officially closed this week when the bulk of her $2.4 million estate was distributed  to Fresno State and a smaller percentage including personal items was distributed to the retirement community in which she resided.   The estate is newsworthy because she had promised in 2001 to leave her entire estate (then valued at $4 million)  to Fresno State in exchange for it naming the education school after her and her late husband.  She changed her will multiple times with the final will leaving some assets to her retirement community and naming its foundation as her executor.

Several points:

1.  She would have been well served by a living trust to ensure privacy for this matter.

2.  Couples make planned gifts, but after the death of one of them,  the survivor is pressured by other charities to leave money to them.

3.  Fresno State seems to have conducted itself honorably by not contesting the will and executor appointment and not removing her name from the education school.

4.  The retirement home will receive 40 mens’ shirts, 70 ties, and 5 sport coats.  Apparently no one  cleaned out the husband’s belongings after his 1995 death.

5.  The retirement home will also receive 35 turtlenecks and 33 pairs of gloves.  I did not think that the weather in Fresno necessitated such a large collection of cold weather gear.

6.  I hope no one wants the 60 pairs of undergarments.

7.  See point 1.

Selling the House From Under Her Feet

An LA woman might lose the house she shared with her common law husband of 27 years.  He allegedly hand wrote a will leaving the house to her.  Nonetheless, the Los Angeles County Public Administrator is proceeding with a sale of the house for non-payment of debts and potential buyers traipse through the house while she is present.

Several points:

1.  Even with a handwritten will, the will must be probated.  Leaving it in a drawer does not transfer any assets.

2.  The common law husband could have added her to the deed as a joint tenant to immediately transfer the house to her upon his death.

3.  Some like to decry notions of traditional marriage, but spouses have more rights and protections under law than non-spouses including the right to inherit when there is no will and the right to remain in a house.

4.  Even people of modest means and limited assets need estate planning.

5.  Newton’s First Law applies to government – a government procedure in motion stays in motion. Someone should pause the bureaucratic machine until the woman’s rights can be ascertained.  If banks were behaving this way, there would be an outcry, protests, Congressional hearings, and a class action suit.  Because it is a governmental agency, people shrug and figure “that is government.”

 

 

Made for Hollywood – Wealth, Murder, Gangs, and Prostitutes

I wish I had the screen rights for this story.  A wealthy tech investor was murdered by gang members who were related to the harem of prostitutes who spent considerable   time in the house he shared with his ex-wife.  In addition to 2 adult children, he had 2 children with a former prostitute who are now seeking support and half of his estate.

Two points:

1.  The claims of the prostitutes’s daughters will depend on how he defined children in his will.

2. Not to be Puritanical, hanging with unsavory characters and living a hedonistic life might be fun, but it rarely ends well.

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I am an attorney located in Cincinnati, Ohio who practices in the areas of estate planning, probate, asset protection, and small business advice. I make a difficult and bewildering process as simple as possible. Most importantly, I provide "more for less" for my clients.