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Piece of Britney (Part 2)

Since her breakdown in 2007 and early 2008, Britney Spears’ finances have been controlled by her co-conservators – her father, Jamie Spears, and attorney, Andrew Wallett. The conservatorship was to assist Britney with managing her financial affairs after she shaved her head, performed poorly at the MTV Video Awards, and locked herself in her bathroom with her young son for 24 hours.

Recent court filings show that Britney earned $56 million last year and spent $385K. Predictably, her ex-husband, Kevin Federline, wants to triple the $20K/month child support he receives from Britney. The one time back up dancer has six kids – two with Britney, two with his first wife, and two with his current wife – but only earns $35K/year. Britney and her co-conservators oppose the increase request. The child support will end in any case when their youngest son turns 18 in 2024.

Several points:

1. If the conservatorship has limited Britney’s spending to $385K, it is clearly working so why end it?

2. $240K should be more than sufficient for K-Fed’s two sons with Britney. He likely needs the extra cash to support his other 4 children.

3. Some of Britney’s favorite stores per the filings are Target, TJ Maxx, Old Navy, Ralph’s, and McDonalds. You can take the girl out of Louisiana but apparently you cannot take Louisiana out of the girl.

Photo Credit:  Reuters/Mario Anzuoni – RC1AEDAB9420

License:  Fair Use/Education (from linked article)

Shooting an Airball

Lorenzen Wright played in the NBA for 13 years and earned $55 million.  Shortly after his retirement, he was the victim of an unsolved murder in a suspected drug deal.  He was survived by his ex-wife, Sherra Wright,  and their 6 children.  After his death, his ex-wife received $1 million in insurance proceeds in trust for the children.  Within 10 months of receiving the proceeds, she was accused of having spent nearly all of them on housing, furniture, cars, and travel.  She is now subject to probate court action to remove her as trustee.

Several points:

1.  It is never a good idea to have a former spouse serve as trustee for the children.  A financially savvy third party is a much better choice.  Newly divorced individuals should quickly revise their wills and trusts to remove the former spouse and to keep him/her away from assets for the children.

2.  In some defense of Sherra Wright, purchasing real estate with trust assets is not spending them, it is re-allocating the type of investment.

3.  I suspect that Mr. Wright is not the only former NBA player to have significant career earnings and to die with less than 2% of them remaining.  Annual child support and alimony payments of $330,000 tend to rapidly diminish one’s net worth.

 

 

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.

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All Posts By Jay Brinker

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.