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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.”

 

 

Agatha Christie Revisted

Urooj Khan is the Chicago man who died of cyanide poisoning after winning $1 million in the lottery.   He had dinner with his wife, father in law, and his teen daughter from a previous marriage the night before he died although his wife and father in law did not allegedly eat the meal.  He did not have a will.  The Cook County Probate Court has frozen his dry cleaning businesses while it determines whether they are part of his estate or were transferred to his widow via other agreements.

Several points:

1.  A document disposing of assets at death would have to comply with the requirements for executing a will.

2.  Exceptions to the will requirement would be a buy sell agreement or provisions within an LLC operating agreement.  However, in this case that would suppose that Mr. Khan’s wife was a business partner with him.

3.  It has been more than six months and no arrests have been made in the death by cyanide where the wife and father in law did not eat the same meal and stood to benefit from the new windfall?  Agatha Christie novels are not this obvious.

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.

Smart Man “Dies Like an Idiot”

A Holocaust survivor who created a $40 million fortune in real estate died without a will last year. Because a world wide search for relatives has turned up none, New York state will receive his fortune.

Several points:

1.  Escheating to the state is incredibly rare because the laws of intestacy look for any living relative, including cousins and their descendants and any one who falls under the nebulous term “next of kin.”

2.  A 97 year old man who is in failing health should not procrastinate in his will preparation.

3.  His fellow Holocaust survivor who said  “He was a very smart man but he died like an idiot” is accurate.

 

Nancy Lanza Will

No snark, today.  Just advice.

Nancy Lanza, mother of the Newtown shooter, left her entire estate to her sons under the terms of a 1994 will which was executed 15 years prior to her divorce.  The preliminary filings show an estate with $60K liquid funds and presumably the house she resided in.

Several points:

1.  At some point she and her husband should have revised their estate plan to include a trust for the care of their son (and to minimize estate taxes).

2.  Post-divorce, she should have revised her estate plan to remove the ex-husband from her documents and to include a trust for her son.

3.  After a divorce from a director/VP at GE Energy Financial Services, and receiving $26K/month alimony, there will be substantially more than $59K in assets.  All the more reason to leave the assets in a trust for her son rather than giving it to him directly assuming he would have survived her.

4.  All parents with children who are unable to manage finances, whether due to young age or a disability, need to have a trust as part of their estate plan.

5.  Anyone who is recently divorced should revise their documents to remove the former spouse and to ensure that the documents reflect their current wishes.

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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.