Tag Archives: trust

One thing you should do when putting your affairs in order

A friend sent this to me the other day.  I thought it was worth sharing.

The doctor, after an examination, sighed and said, “I’ve got some bad news.
You have cancer, and you’d best put your affairs in order.”

The woman was shocked, but managed to compose herself and walk into the waiting room where her daughter was waiting.

‘Well, my dear daughter, we women celebrate when things are good, and we celebrate when things don’t go so well.

In this case, things aren’t well. I have cancer. So, let’s head to the club and have a martini.’

After 3 or 4 martinis, the two were feeling a little less somber. There were some laughs and more martinis.

They were eventually approached by some of the woman’s old friends, who were curious as to what the two were celebrating.

The woman told her friends they were drinking to her impending end, ‘I’ve been diagnosed with AIDS.’   The friends were aghast, gave the woman their condolences and beat a hasty retreat.

After the friends left, the woman’s daughter leaned over and whispered, ‘Momma, I thought you said you were dying of cancer, and you just told your friends you were dying of AIDS! Why did you do that?’

‘Because I don’t want any of those bitches sleeping with your father after I’m gone.’

And THAT, my friends, is what is called, ‘Putting Your Affairs In Order.’

Actually, she could protect her money by setting up a trust to ensure that her children got her money, not her husband’s new sweetie.   But it’s still a good story,

For more information about estate planning, wills and trusts, go to www.diesmart.com.

Another actor did it wrong. Do you have your plans in place?

Julie Garber, in her weekly blog, wrote about another person who did it wrong.  When actor Paul Walker died in a terrible car crash on November 30th, 2013, he left an estate estimated to be worth at least $45 million.  However, he had done no estate planning and left no will.  He was only 40 years old and probably thought he had plenty of time to get his affairs in order.  His parents, ex-wife and girl friend of seven years are now fighting over who should inherit.

According to California intestate laws, the entire estate should be inherited by his daughter, Meadow.  Since she is only 15, someone needs to be responsible for managing to estate until she turns 18.  Her mother is her guardian but is not necessarily the one who will control the money on her behalf.  Since her parents believe they should manage the estate, the case will have to go to probate court.

And what about his long term girlfriend, Jasmine?  She won’t see a penny.

Have you done estate planning?  Is all of your paperwork in order?  Or are you, like Paul Walker, leaving a mess for  your loved ones?

For more information about estate planning, go to www.diesmart.com.

Bad mistake made by heiress Huguette Clark

Huguette Clark was an heiress who died in 2011 at age 104.  She left behind a $300 million estate.  The bulk of the money was inherited from her father, a copper tycoon in Montana.   She owned a 23-acre estate near Santa Barbara valued at $100 million, a $24 million house in Connecticut and a $100 million coop on Fifth Ave. in New York.  She was a painter and a collector of rare French and Japanese dolls.  She had no children, no close relatives and only limited contact with any of her distant relations.

She spent the last 20 years of her life living at Beth Israel Medical Center as a recluse, closer to her doctors and nurses than any family.

When she died, the only people who attended her burial were funeral home employees.

What did she do wrong?  She left behind two wills, written just six weeks apart.

The first one left  $5 million to her nurses and the balance of the estate to her distant relatives, even though 14 of the 19 involved said that they had never even met Huguette.

The second will left nothing to the relatives.  It specifically said” I intentionally make no provision…for  any members of my family…having had minimal contact with them over the years.”  Instead, charities are the largest beneficiaries, receiving over 80% of the estate.  Also named was her registered nurse, Hadassah Peri, who would receive $15.3 million after taxes, and a goddaughter who would get $7.9 million.  Lesser beneficiaries included Beth Israel Medical Center, her attorney, her personal assistant, her accountant, property managers and one of her doctors.

In addition to what she was given in the will, her registered nurse received more than $31 million in gifts before Clark died and the estate administrator is asking that the $31 million be returned to the estate.

Family members are claiming that the second will was written under duress when she was mentally ill and incompetent and the victim of fraud by her nurse, attorney and accountant.

Negotiations have been going on for a few years, with 60 attorneys involved in the case.  However, the chance of a settlement is not certain and a jury trial is scheduled to begin in Surrogate’s Court in Manhattan on September 17th.

Huguette Clark should have had better legal counsel when she decided what to do with her sizeable estate.  She should have prepared a trust, including directions on who had the right to make decisions on her behalf when she was unable to do so.  And she probably should have destroyed the first will.

It will be interesting to see what the probate court decides if a settled hasn’t been reached prior to September 17th.

For more information about Hugette Clark and her reclusive life, look for a book being released on September 10th titled “Empty Mansions: The Mysterious Life of Huguette Clark and the Spending of a Great American Fortune.”

To learn more about how to plan for the end of your life, go to www.diesmart.com.

Helen and Les Brown were born on the same day, remained married for 75 years and died just one day apart at age 94.  What a wonderful story of true love.  It would be great if there were more couples like them in the world.

75 year marriageBut, while thinking about this great couple, being a part of the Die Smart community I can’t help but think about their estate.  It’s bad enough if one person dies and a family member has to settle the estate, including dealing with lawyers, probate court and the mounds of paperwork that are necessary.  But the double work of settling the estates of two people can be massive.

Did they have wills, trusts, POD accounts?  Will one estate have to be settled before the other one?  Did they have their affairs in order?

To learn about what you should do to make sure you can avoid probate and make it easier for your loved ones to settle your estate after you’re gone, go to diesmart.com.

25 Documents You Need Before You Die

Recently, the Wall Street Journal weekend edition had a very interesting article titled “25 Documents You Need Before You Die.”

Basically, it says that you should make sure that the originals of all of your valuable papers are put somewhere safe and that a loved one knows where that safe place is. Otherwise, when you become incapacitated or after you die there may be a great deal of frustration and unnecessary work as your heir or estate representative tries to figure out what you’ve done and how to prove it.

Check out this article and also check out Die Smart for more information on what to do.