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Paul Walker, Sumner Redstone, and Tom Benson Updates

Tuesday, 19 April 2016 13:39

tom bensonBriefly updating three stories previously mentioned.

1. Paul Walker’s teenaged daughter settled a wrongful death lawsuit for $10 million against the driver of the Porsche in which he was riding at the time of his death in 2013. The settlement actually occurred nearly 18 months ago, but was only recently reported. Her lawsuit against Porsche for manufacturing an allegedly defective vehicle is still ongoing.

2. Sumner Redstone settled the lawsuit filed by his former girlfriend, Manuela Herzner, questioning his capacity to remove her as his health care surrogate and presumably his capacity to revise his will to omit her. She was allegedly slated to receive $50 million plus an expensive house. The settlement is reportedly for less than $70 million.

3. Last, the Louisiana Supreme Court has ruled that the court records regarding Tom Benson’s competency hearings should remain sealed and unavailable to the public. After the Harper Lee probate judge sealed her estate proceedings, it seems that Southern courts have a proclivity for privacy while their predecessors acted in hooded robes for their secrecy.

Fast, Furious, and Guardianship Settlement

Wednesday, 02 April 2014 20:40

As mentioned previously, Paul Walker designated his mother as the guardian of his minor daughter, Meadow Rain, even though Rebecca Soteros, Meadow’s mother, was still alive.  His mother filed probate documents asking to be named guardian.  According to Bela Lugosi Jr, attorney for Mrs. Walker, the parties recently agreed to allow Meadow to live with Soteros once Soteros completes a stint in alcohol rehab.

Several points:

1.  This would have been a difficult fight for Mrs. Walker to win because the birth parent is presumed to get sole custody of a child regardless of provisions in the deceased’s will.

2.  Mrs. Walker probably leveraged the will provision to ensure that Soteros sought treatment before gaining sole custody of Meadow, although she might have been tempted to fight for custody by the trust funds available to her.

3.  Who knew that Bela Lugosi (Jr.) was practicing law?  I thought Bauhaus said “Bela Lugosi’s Dead.”

Fast, Furious, and Thriller

Saturday, 15 February 2014 17:36

As noted earlier, when Paul Walker’s executor filed his will with the probate court, he estimated his future income at $8 million and this total estate at $25 million.  Also, as noted last Fall, the Executors of Michael Jackson’s estate are battling the IRS over the value of his estate, which they declared to be only $7 million but the IRS contends is worth more than $1 billion.  The discrepancy stems largely over the value of MJ’s likeness for commercial purposes (t shirts, merchandise) and the value of his musical catalog which also includes Beatles songs.  His estate valued them at $2,100 and $0 respectively.  The IRS valued them at a combined $900 million.

Several points:

1.  If Paul Walker will earn $8 million post-mortem, a $7 million valuation for Jackson’s estate is ludicrous.

2.  The King of Pop grossed $160 million in 2013, more than any other celebrity belying the low valuation of his music if not his likeness.

3.  I doubt that the image of a deceased entertainer with MJ’s murky past is worth $450 million, but it is worth more than $2,100.

4.  It might seem like the IRS “won’t stop ’til it gets enough” and the issues are “black or white,” but the estate’s stated values are “bad” if not “dangerous” and could make his family “scream” if they do not “beat it.”

Fast, Furious, and Admitted to Probate

Tuesday, 11 February 2014 21:24

The will of “Fast and Furious” star, Paul Walker, was admitted to probate last week.  The 2001 document has garnered some media attention because it appoints his father as executor of his $25 million estate which he left to a trust and designates his mother as guardian of his daughter, Meadow Rain, even though her mother survived her.   His estate consists of $10 million of investments, a house with $8.5 million equity, and projected $8 million residuals from his movies.

Several points:

1.  In split household situations, the biological parent will almost always be the sole guardian of a minor child even if the will designates someone else.

2.  In split household situations, I always designate a guardian for the minor children, although I condition it on the other parent being unable  to provide a stable home environment.

3.  Mr. Walker could have avoided the probate process on his investments by adding a transfer on death (TOD) designation to his trust.

4.  Meadow Rain?  In the annals of names of celebrity children it is probably better than Apple Martin and Blue Ivy Carter, and definitely better than Peaches Honeyblossom Geldof, Fifi Trixibelle Geldof, Moon Unit Zappa, and Diva Muffin Zappa but falls short of Tallulah Willis and Scout Willis.

 

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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.