Audrey Hepburn died in 1993. She left her personal belongings, including costumes, scarves, hats, scripts, awards, and other memorabilia, equally to her two sons. They in turn loaned the memorabilia to a charity to display. After one of the sons ran into financial difficulties, he asked for the return of the property. He and his brother were unable to agree on how to divide the property so they went to court. They just settled their dispute last week.
Several brief points:
1. Most disputes about estate administration that I see are about the personal belongings and not the money. Oddly. And sadly.
2. In Ohio, people can easily specify which child or beneficiary is to receive a particular item by leaving a written document as a will companion so stating.
3. In Hepburn’s case, I feel sorry for anyone fighting over 25+ year old scarves and hats even if they once belonged to a famous person.
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License: Fair Use/Education
The State of Ohio is holding an auction this Friday and Saturday to sell the contents of abandoned safe deposit boxes to make room for additional items in the Unclaimed Funds department. The items include Kruggerands, silver bars, coins, and currency. This is the first auction of this type since 1998. The state has had some of the items in its possession since 1968.
A few brief points:
1. Some of the abandoned boxes belonged to decedents. I always advise my clients to notify their executors of the location of any safe deposit boxes to prevent them being lost.
2. The State of Ohio currently has $2.3 billion in unclaimed funds it is holding for their rightful owners. Those funds can be claimed by completing a form on the Ohio Department of Commerce website.
3. Almost 50 years since the state found some of these items? The wheels of bureaucracy grind slowly.
Photo Credit: Joshua A. Bickel/Columbus Dispatch
License: Fair Use/Education
When Frank Sinatra, Jr. died last March, he was embroiled in divorce litigation with his ex-wife, Cynthia. When they divorced in 2001, he was ordered to pay her $5,000 per month for a year. Sinatra continued to voluntarily make those payments for an additional 10 years until he was financially unable to do so. Rather than show gratitude, his ex-wife filed for a second divorce claiming that they were in a common law marriage in Texas because he continued to refer to her as his wife both on stage and privately.
Sinatra actually lived in California, paid California income taxes while he could have avoided taxes if he were a Texas resident (Texas does not have an income tax), and filed federal gift tax returns for the payment to his ex (transfers to spouses are not subject to gift taxes). Nonetheless, a Texas court ruled that they were married and awarded her $500,000, half of his $4.5 million house, and $5,000/month for another year. Sinatra died during the appeal which was ultimately decided posthumously in his favor.
So many possible points, but let’s stay with a few.
1. Only 15 states recognize common law marriages. Ohio is not one of them.
2. To have a common law marriage, couples must agree that they are married, tell others that they are married, and live together in the state which recognizes common law marriages.
3. If Sinatra was filing income tax returns as a California resident and filing federal gift tax returns for the payments to Cynthia, he did not consider her his wife.
4. Being a gentleman got Sinatra nowhere – he was trying to be considerate of Cynthia by not referring to her as his “former wife.” If he had to do it again, I suspect he would introduce her as “my EX-wife, hear that? My EX-wife.”
Ken Thompson was the Brooklyn District Attorney who died of cancer in October. Two weeks prior to his death, he allegedly changed his will to omit any bequest to his mother and instead left his estate in trust for his wife and 2 young children.
His mother is contesting the will alleging that he did not know what he was doing due to his illness. As support for her theory, she argues that Thompson was unhappy with his marriage because of the amount of money his wife was spending.
Three quick points:
1. It is anything but unusual for a man with young children to leave his entire estate to his wife and children. Providing for a mother is what would be unusual.
2. The creation of trusts to assist his wife with financial management of the inheritance shows mental clarity not lack of mental capacity.
3. If Thompson was unhappy with his wife’s spending, he is in the majority of husbands.