BlogRead the Latest News

 

Not About the Sport Coats

Craig Sager was a beloved basketball reporter who died last year from cancer. He was known for his colorful sport coats and bantering with Gregg Popovich, coach of the Spurs. He was divorced and re-married at the time of his death with children from both wives. His will is being probated in Georgia. It reportedly left everything to his second wife, Stacy.

His son from his first marriage tweeted yesterday that he was being summoned to court by a sheriff to prevent him from contesting the will even though he was not interested in contesting in the first place. His sister, Kacy, defended her brother while also flaming her step-mother and tweeted a list of grievances. Seeing a moment in the sun, the former girlfriend of the son felt compelled to jump into the fray and call the step-mother a POS in typical coarse social media parlance.

Several points:

1. Georgia is similar to Ohio in that when a will is admitted to probate all of the heirs at law (spouse and children) plus all of the will beneficiaries are required to receive notice of the probate proceedings via certified mail.

2. The son from the first marriage and his sisters were simply receiving the legally required notice.

3. Given the lapse between the date of death of Sager’s death and the date of this process, it is likely that most of his assets were in a trust and that a small account was titled only in his name and hence subject to the probate process.

4. Sager might have excluded his children from his first marriage due to their hostility to his second wife and/or their over-reaction to legal events.

5. Hostility to second wives can be avoided if they are age appropriate and their names do not rhyme with that of one’s daughters.

Khloe and Lamar (Update)

khloe-kardashian-lamar-odom-divorce-relationship-news-update-2014At the risk of turning this blog into TMZ-lite or another gossip site, Khloe Kardashian and Lamar Odom have called off their pending divorce. Lamar has recovered enough from his cocaine and Viagra induced coma that he is now in physical therapy.

Read more ...

Tarnished Sterling

The trial deciding whether Shelly Sterling can sell the Los Angeles Clippers as trustee of her husband’s trust will start on Monday, July 7.  Her husband, Donald Sterling, was banned from the NBA for life and fined $2.5 million after his “girlfriend” recorded him making racist statements.  After he was declared mentally incapacitated by 2 physicians, he was removed as trustee of his trust which enabled his wife to sell the team to Steve Ballmer for $2 billion.  The purchase price is the second highest for a sports franchise and is 2x the second highest American purchase.   Sterling only  paid $13.5 million in 1981.  The trial will focus on the trust terms.

Several points:

1.  The trusts I draft for my clients have similar provisions for removing a mentally incapacitated trustee.

2.  That Sterling is not accepting of the incredible $2 billion offer for a franchise known as the most inept in all of sports during his ownership tenure is evidence that he might be mentally incapacitated.

3.  His argument will be that he is not incompetent but simply racist and making a bad business decision.  He might wish to re-think that.

sterling 29906170001_3541842657001_Screen-Shot-2014-05-06-at-3-16-04-PM

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.

 

 

Contact Me

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.