Gifts To Grandchildren

Gifts given to grandchildren by grandparents can be a great blessing.  Kelly Greene wrote an article in the Wall Street Journal September 14, 2012, titled "Are You Coddling Your Grandkids?"  In her article, Ms. Greene indicates five ways to give to a grandchild something and at the same time not creating a sense of entitlement from a grandchild.
First, Ms. Greene says you must, "Pare your gifts to offset the pain."  In other words, don't give to the extent that you jeopardize your own financial care.
Second, Ms. Greene say you might consider making a gift a loan rather than an outright gift.  If the loan is handled properly, it might be a good way to help the grandchild and at the same time allowing them to make their own way in the world.
Third, Ms. Greene says a grandparent can create teaching moments.  Gifting stock or investments rather than cash can be a way of teaching grandchildren the value of money as an example.
Fourth, Ms. Greene says it is a good idea to delay a grandchild's gratification.  Gifting money at certain dates or events rather than on a regular basis can help grandchildren rely on their own resources first.
Fifth, Ms. Greene counsels to practice equality.  One of the most common reasons for litigation between family members if perceived favoritism. 
As you choose to gift assets, it is wise to take into account the feelings of family members and how said gifts will affect them in the long run.

New Year's Resolution

At the beginning of this new year, we at Hughes Estate Group wish all a happy and successful year.  We would encourage everyone to set a goal for this year to either get an estate plan in place (if a plan is not in place) or review and update any existing estate plan (if a plan does exist).  Death is something we will all experience.  Ensuring the smooth transition of one's estate to beloved beneficiaries is one of the best gifts a person can give his or her family.

Who Gets Dad's Old Anvil

Once both parents have died, the children have a big job ahead of them. It litterly can take years to wade through all the accumulated stuff. And the stuff might really be valuable (not just monetarily). The sentimental value of a certain item can help ease the lose of the loved one as family reminisces, or it can cause the dreaded family fight that keeps family members from talking to each other for years. An article written by Kelly Greene of the Wall Street Journal entitled, "The Pearls Are Mine!" gives some good suggestions for working through the mountain of stuff in an timely and friendly way.

Movie Review: Snowball Express

Here is another inheritance movie. Disney's classic, Snowball Express (1972), is just plain fun. The story is about the crazy adventures a family has when they move to Colorado to try and make an inherited run down hotel a success. Of course, there are the good and bad guys and the ultimate "snowmobile" race to see which side wins.

The movie can be found here.

Movie Review: Scavenger Hunt

Here's an inventive way to give away your estate. Have your relatives participate in a scavenger hunt where the winner inherits all. Scavenger Hunt (1979) is exactly that. In this comic movie, the relatives and even the servants compete for the prize: the $200 million dollar estate.

Check out this review.

William Shakespeare and Edward De Vere's Estates

No matter which side you take--William Shakespeare is "the" William Shakespeare or Edward De Vere is "the" William Shake-speare--it is of interest to look how their heirs inherited each of their estates.

The Stratfordian Shakespeare's Will

William Shakespeare of Stratford prepared a will before he died.

To his daughter Judith he willed:
- 100 pounds for a marriage portion and another 50 pounds if she renounced any claim to the Chapel Lane cottage.
- An additional 150 pounds if Judith lived another three years, but forbade her husband any claim to it unless he settled on her lands worth the 150 pounds.
- If Judith did not live another three years, the 150 pounds was to go to Shakespeare's granddaughter Elizabeth Hall.
- A silver bowl
To is sister, Joan Hart, he willed:
- 30 pounds
- Life estate with nominal rent in the Western of the two houses on Henley Street, which Shakespeare himself inherited from his father in 1601.
To Joan Hart's sons, his nephews, he willed:
-5 pounds to each of Joan's three sons.
To his granddaughter, Elizabeth Hall, he willed:
- All his silver plates, except the silver bowl left to Judith.
To the poor of Stratford he willed:
-10 pounds to the poor of Stratford.
To his friends he willed:
- His sword and various small bequests to local friends.
- Memorial ring to be bought for his lifelong friend Hamnet Sadler
- Memorial rings to be bought for John Hemynges, Richard Burbage, and Henry Cundell
To his wife, Anne, he willed:
- His "second best bed."
To his daughter, Susanna and Son-in-Law, John Hall, he willed
- "All the Rest of my Goods, Chattels, Leases, Plate, Jewels & Household stuff whatsoever after my debts and Legacies paid & my funeral expenses discarded."

Oxfordian Shake-speare's Estate

Edward De Vere was the 17th Earl of Oxford. He inherited the Oxford estate when his father died. Titled property usually was inherited by the oldest son in a nobleman's family. Edward De Vere had only one living son, Henry, from his second wife, Elizabeth.

Edward did sell some of his estate during his life, and established a trust fund for his three living daughters from his first wife, Anne. His three daughters, Elizabeth, Bridget, and Susan all married men of title as well.

The remaining estate went to his second wife, Elizabeth, and his son, Henry, who became the 18th Earl of Oxford.

What About Steve Jobs's Estate Planning?

Now that Steve Jobs has died there is speculation in the news regarding what place in technology ingenuity Apple, Inc. will play in the future. A less public issue of speculation is what will happen to Mr. Jobs's estate. Mr. Jobs during his life has been private regarding his philanthropy endeavors. Laurene Powell Jobs, Steve Jobs's widow, has very quietly been involving herself with education issues, women's issues, and other philanthropic causes. Two organizations founded by Ms. Powell Jobs are College Track and Emerson Collective. Both organizations strive to help individuals help themselves. Most likely, Ms. Powell Jobs will continue using Mr. Jobs's estate to further philanthropic causes important to both Ms. Powell Jobs and her deceased husband, Steve Jobs.

From our perspective as estate planners, the critical point is that Mr. Jobs seems to have done his estate planning right. We can say this because so little is being said (can be said) about it in the news. It seems everything has been done privately, confidentially, and competently. No news in estate planning is good news.

Here is an article with the Wall Street Journal touching on this issue.

Book Review: "Philanthropy Heirs & Values"

"Philanthropy Heirs & Values" written by Roy Williams and Vic Preisser discusses how to help heirs learn money principles during their growing up years so that they can wisely handle their inheritance once parents have died. The book is geared towards more wealthy individuals, but I think the principles they talk about could be used by any family to learn sound money skills and the joy of philanthropy.

Briefly, the authors discuss three general skills children need to learn: values, mission, and accountability. The authors further discuss how these three skills should be taught to children during five developmental periods of a child's life. The five developmental periods are:

Age 5-10 Awakening Years, discovering one's personal influence.
Age 11-15 Exploring Years, discovering self in the midst of change.
Age 16-20 Developing Years, understanding accountability.
Age 21-30 Applying Years, maximizing the value of contributions.
Beyond 30 Mentoring Years, unifying the family through Philanthropy.

You can find "Philanthropy Heirs & Values" here.

The Basic Stages of Life

There are three basic stages of life when contemplating estate planning.

1. Individual is alive and mentally competent



2. Individual is alive and mentally incapacitated



3. Individual has died

Each of these stages is handled differently.

Individual is alive and mentally competent
When an individual is alive and mentally competent, estate planning documents can be in place, but most likely the documents are sleeping (or not being used) during this stage of life.

Individual is alive and mentally incapacitated
When an individual is alive but mentally incapacitated, there are certain estate documents that if prepared ahead of time allow family members to step in and begin acting on behalf of the incapacitated individual. The kind of documents that might be prepared for this stage of life are:

• health care power of attorney



• medical directive (pull-the-plug)



• health care directive



• financial power of attorney



• do not resuscitate (In Utah, an individual can only obtain a DNR by contacting a physician and filling out the DNR with the physician.)

If these documents are not in place before an individual becomes incapacitated, family members will go to court to obtain conservatorship or guardianship appointment in order to act for an incapacitated person.

Individual has died
When an individual has died, any powers of attorney used during incapacity becomes void and family members must turn to any will or trust that has been established to deal with this stage. If an individual has prepared a trust and/or will, family members can begin the process of accessing assets, paying bills, and distributing assets to the beneficiaries of the deceased person. If the person dies without estate documents in place, most likely the family members will need to go through probate to obtain authority to access and distribute any property of the deceased person.

In contemplating estate planning, it is important to be aware of the three stages of life and prepare for each stage.

Michael Jackson's Estate Distributions

Michael Jackson's estate has made enough money since his death to pay off large amounts of debt due at his death and still distribute about 30M to his children and their mother. Unnamed charities have also begun receiving portions of the estate assets.

Here is a good article regarding this event.

Movie Review: "Topper Returns"

I have been thinking about about good stories based on inheritance issues. I remember watching "Topper Returns" (1941) as a little girl with my family. It is a mystery/comedy that boils down to murder in order to inherit. I remember laughing so hard it hurt. I would highly recommend watching this movie. Take a look here.

Book Review: "Little Dorrit"

Some of Charles Dicken's greatest works use inheritance to move the stories along. We have mentioned Charles Dicken's "Bleakhouse" in a previous blog. Another of Charles Dicken's great books is "Little Dorrit." Much of the story follows individuals who grapple with the consequences that come with having a lack of money or an over abundance of money. There is the burning of a will and unclaimed inheritance reclaimed by relatives. There are family secrets to protect and the ultimate triumph of love over money. It really is a great book. The BBC production starring Claire Foy, Matthew Macfayden, Tom Courtenay, et al. (2009) brings to life this wonderful book.

Little Dorrit in DVD
Little Dorrit in paperback

Definition of the Week: Beneficiary

Beneficiary: A person or persons who benefit from the generosity of a grantor or benefactor. A person who receive an inheritance. The beneficiary may be a child, grandchild, or any other natural person or a charitable organization. Beneficiaries are the persons named in a testamentary document as recipients of a benefactor's or grantor's generosity. The grantor or benefactor may be a parent, grandparent, or any individual. A beneficiary is not necessarily an heir (or child). For example, your church may be a beneficiary, but would not be defined as an heir. Also, an heir (or child) is not necessarily a beneficiary. For example, you may disinherit an heir (or child), which means that particular heir (or child) would not be a beneficiary.

Joke of the Week

Suzie--"Mamma, you know that vase you said had been handed down from generation to generation."
Mother--"Yes, my dear."
Suzie--"Well, this generation has just dropped it."

Joke of the Week

Friend: "Was your grandmother's mind vigorous and sane up to the very last?"
Heir: "I don't know--the will won't be read until tomorrow."

Check out our website here for additional information regarding estate planning.

Inheriting Double Eagle Gold Coins Might Not Be Easy

Israel Switt, a Philadelphia jeweler, died in 1990. In 2003, Switt's daughter, Joan Langbord, discovered ten gold coins in a safety deposit box owned by her father. She is now suing the U.S. Government for the right to inherit those gold coins.

The gold coins in question are called double eagles. In 1933, Franklin Delano Roosevelt ordered all double eagle gold coins to be melted back into gold bars. The double eagles were never released by the U.S. Government. But a few of these gold coins mysteriously got out.

Ms. Langbord insists the government has the burden of proof in this case. This could mean that if the government cannot prove Israel Switt personally stole the double eagles, the gold coins would pass to Israel Switt's heirs. And Israel Switt's heirs could inherit coins that are worth millions of dollars.

A few articles of interst regarding Mr. Switt's double eagle gold coins are:

"Heirs Battle U.S. Mint Over Prized Gold Coins" by the Wall Street Journal
"Family fights government over rare 'Double Eagle' gold coin" by Yahoo
"Pa. family fights US over rare 1933 gold coins" by Associated Press

For more information regarding inheritance issues look here.

Son, You Can Have your Inheritance Only if You Marry a Good Jewish Girl

Max Feinberg stipulated in his will that each of his beneficiaries would receive their inheritance only if they married someone of the Jewish faith or the beneficiary's spouse converted to Judaism within one year of marriage. Only one beneficiary met the requirement. Another beneficiary sued. The Court held that because the beneficiaries had no legal ownership interest in the trust property at Mr. Feinberg's death and because Mr. Feinberg's requirement did not violate any public policy, then Mr. Feinberg's instructions in his will were perfectly valid and enforceable.

If the will had directed that Mr. Feinberg's beneficiaries receive their inheritance only if they assassinated the local mayor, then that would violate public policy against murdering the local mayor. Any term in a will that calls for violation of a law in order to receive an inheritance will be held invalid. Otherwise, you have pretty much free rein to decide under what conditions your assets will be distributed.

For information regarding the Max Feinberg case go to:
In Re Estate of Max Feinberg v. Feinberg
In re Max Feinberg
Max Feinberg

What Do You Do When You Inherit Poems?

In 1994, David Broza, an Israeli balladeer, performed once in a small concert with Townes Van Zandt, a Texan singer and songwriter. When Mr. Van Zandt died in 1997, he bequeathed his unpublished poems to Mr. Broza. An unexpected inheritance for Mr. Broza. Eight years after Mr. Van Zandt's death, Mr. Broza, in tribute to Mr. Van Zandt, turned the poems into songs. In 2010, Mr. Broza produced an album "Night Dawn: The Unpublished Poetry of Townes Van Zandt." A nice tribute and great music and lyrics. Check it out http://nightdawn.davidbroza.net/

Lost Inheritances

The Sacramento Bee reports that California's unclaimed property program is sitting on billions in forgotten money owed to thousands of businesses and individuals. It's from dozens of sources: overlooked bank accounts; stocks, bonds and dividends; uncashed paychecks; abandoned safe deposit boxes; misplaced insurance policies; utility bill refunds; or even that security deposit from your first college apartment.

In the last five fiscal years, California's unclaimed property office has returned $1.37 billion from more than 1.4 million accounts held by individuals and businesses, according to state controller's spokesman Jacob Roper.

How could so many lose track of so much?

"A lot of larger assets we're holding are inheritances that people don't know about," said Ruth Holton-Hodson, who oversees the state's unclaimed property program. "Older generations were very private about their incomes and often didn't share that with their children. They search our site and find, 'Oh, my goodness, Grandma had a bank account or Aunt Sally had 15 shares of GM.' "

In California you look at www.claimit.ca.gov or call 800-922-4647. In other states and Canada the National Association of Unclaimed Property Administrators has a site at missingmoney.com.

At Hughes Estate Group, we see unclaimed property issues as a sign of extraordinarily poor or nonexistent estate planning. Even for those with plans in place, the lesson here is simple: COMMUNICATE. You must communicate with your beneficiaries and fiduciaries where a complete list of all your assets and your will and trust can be found when you are gone.

Heir Hunters

Two half-sisters living 100 miles apart have discovered each other's existence - and their shares in a £23,000 fortune.

The story comes from the popular U.K. show "Heir Hunters."

The story is about the estate of 80-year-old bachelor from Yarmouth, England named Cyril Curtis. He appeared to have no relatives when he died last year. The story comes from the Great Yarmouth Mercury.

The probate research firm, Hoopers got into the picture and discovered two nieces. A brother of Curtis had married a woman and had his first daughter. The couple never divorced, but the brother went on to have a long-term relationship with another, during which he fathered another daughter. The two daughters never knew of the other's existence until the death of their uncle set of the investigation.

Here's a video clip from the third series of the popular program.