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: 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.

Purpose Of Estate Planning

The purpose of estate planning is to transfer assets to beneficiaries at the times and in the manner desired by the owner efficiently, with minimal taxes, and without conflicts. This concise definition of the purpose of estate planning involves a lot of issues. The individual participating in estate planning must gain an understanding of all the issues. Look at the following site for an in-depth introduction to the various issues involved with estate planning.

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.

Financial Powers of Attorney Cont.--Part 3

In Wilson Rawl's Where the Red Fern Grows, Billy says of his small hunting dog Little Ann, "Dynamite comes in little packages." Financial powers of attorney are as dangerous as dynamite in terms of their potential consequences for ill. Inadequate financial powers of attorney are at the heart of numerous expensive and painful probate cases. Financial powers of attorney are as important as revocable trusts and deserve as much attention.

In an article written by Linda S. Whitton, titled "Durable Powers as an Alternative to Guardianship: Lessons We Have Learned" (37 Stetson L.Rev. 2007), Ms. Whitton states there are three things to understand about durable powers of attorney when being used as an alternative to guardianship.

1. A Power of Attorney is Only as Effective as the Willingness of Third Parties to Accept It.


2. A Power of Attorney is Only as Protective as the Agent is Trustworthy.


3. A Power of Attorney will Not Prevent Family Power Struggles of the Principal's Assets.

In this blog, we will address the third point made by Ms. Whitton.

We disagree with Ms. Whitten's third point. We disagree based on our firm's experience. Yes, Ms. Whitton is correct that a power of attorney in itself will not make controlling family members suddenly loving, giving individuals. However, a well-drafted power of attorney that requires regular accountings and encourages constant communication can keep the urge to control from ranging out of control.

The Cost of Ignorance

By most measures, Larry Hillblom was a smart guy, but he lost his senses when he decided to draft his own will.

Mr. Hillblom was the "H" in DHL Corp., the air-courier giant. His interest was valued at $600 million before he died in 1995. He graduated from Boalt Hall School of Law at Berkeley and argued high-profile international cases before the Ninth Circuit. He was a special judge in his adopted county, the Commonwealth of the Northern Mariana Islands.

But when Mr. Hillblom decided to draft his own will, he exhibited little intelligence. In the will, he left most of his $600 million to university medical centers for research. But, alas, the will lacked one detail: a simple, one-sentence disinheritance clause.

Mr. Hillblom's drafting failure was unforntunate, because over the years he had fathered several children with young women through the South Pacific. The mother of Hillblom's oldest known child named him "Junior Larry Hillblocm." When Junior was ten, an attorney represented him and three other offspring and sued Hillblom's estate, claiming inheritance rights.

The estate, DHL, and the various medical research universities hired over 100 buttoned-down attorneys to fight the paternity claims. After more than four years of litigation, the case was resolved.

The four children won.

A very important lesson can be learned from Mr. Hillblom's mistake. It is always advisable to consult an expert in ensuring your estate plan will be carried out in the way your intended it to. Or pay the price to become the expert yourself. Check out our website.

Book Review: "The Anatomy of Peace"

When we meet with potential probate litigation clients, we recommend they read "The Anatomy of Peace" by The Arbinger Institute. On the outset, it might seem strange to be recommeding a book that discusses peace with a potential probate litigation client. However, litigation is ugly and can ruin family relationships forever. "The Anatomy of Peace" gives a formula for dealing with conflict while still maintaining a heart at peace towards those individuals on the opposite side of any conflict. I would highly recommend reading this book even if your family will never experience probate litigation.

You can obtain a copy of "The Anatomy of Peace" here.

Estate Planning Must be Done Right in a Second Marriage to Prevent Problems

In Second Marriages, it is common for the deceased person's surviving spouse and children from the deceased person's first marriage to fight over assets. An example of this type of fight can be seen in a high profile case. Melvin Simon, a shopping mall magnate, died. His assets are being fought over by his second wife, Bren Simon, and Melvin Simon's three children from his first marriage. Seven months before Mr. Simon died, he changed his will giving his second wife, Bren, half of his estate and reducing his children's inheritance significantly. The children say Mr. Simon signed the will under duress. To read more about Mr. Simon's case click here.

It does not matter if an estate of a deceased person is large or small. If the deceased has married two or more times and has children from previous marriages, the chances of there being a disagreement between the surviving spouse and the children from the previous marriages are very high. In second marriages, it is essential that estate planning be done right. Please contact us at Hughes Estate Group to ensure a smooth transfer of assets in the event you are in a second marriage and have children from a first marriage.

Check out our website here.

Switt Family Will Not Inherit Gold Coins

An update on a blog I wrote a few days ago regarding Israel Switt, Israel Switt's heirs, and a lawsuit against the government to inherit gold coins.

A jury decided against Israel Switt's heirs. Gold coins discovered in a safety deposit box by his daughter, Joan Langord, were turned over to the government for authentication. It was determined the gold coins were authentic double eagles gold coins that were minted and then melted back into gold bars at the direction of Franklin Delano Roosevelt. The coins were never sold to the public. Ms. Langord sued the government claiming her family were heirs to the gold coins. The government's lawyers convinced the jury that Mr. Switt underhandedly obtained the gold coins from a cashier inside the U.S. Mint thus making the property stolen property rather than an inheritance for Mr. Switt's heirs.

Read here for more information on the matter.

Take a look at our site here regarding inheritance matters.

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.

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

The Girl with the Valuable Laptop

After the 60-cigarette a day, 50-year-old Swedish author died n 2004 of a heart attack, his works became international best sellers, selling more than 12 million copies. Stieg Larrson's best seller "The Girl with the Dragon Tattoo" has a plot that centers on computer hacking and a neo-punk heroine called Lisbeth Salander. The other's are "The Girl Who Played with Fire" and "The Girl Who Kicked the Hornet's Nest." The three titles comprise what is known as the "Millennium Series." Big name Hollywood types are vying to act and produce a film based on the works - George Clooney, Johnny Depp, and Quentin Tarantino and Martin Scorsese.

The big problem, however, is that Larsson's estate in in dispute. The author died suddenly and without a will so the estate goes to his immediate family by law. His immediate relatives were a father and brother, from whom he was reportedly estranged.

It's complicated by his 30-year common law wife, Eva Gabrielsson. She has made a bid for the estate based on their long-term relationship. She also supported through all of the lean years and helped him in his research for the books.

She is trying to get the literary rights, but the family says no deal. The case has caused quite a stir in Sweden and many have called for a change in the law that would recognize common-law spouses in cases like this. "Support Eva" protests have erupted online from all parts of the world.

Ms Gabrielsson, has a big bargaining chip. She has this laptop that has a 200-page draft manuscript of a fourth novel. It is property now worth millions. There are rumors that it might contain plots for another six books.

More at the Guardian.

After 36 Years, 100 Greek Relatives No Longer Prevail

A Florida judge ruled today that a will disposing of Jack Kerouac's estate is a fake. Kerouac, the Beat Generation author, left his estimated $20 million estate to his mother Gabrielle in a valid and accepted will. Gabrielle in turn allegedly signed a will, leaving Kerouac's estate and royalties to Kerouac's divorced wife Stella Sampas Kerouac, who was a devoted caretaker of Gabrielle. Gabrielle then died in 1973. For 21 years, Kerouac's estate and royalties were controlled by Stella Sampas Kerouac's family.

In 1994, Jan Kerouac, the author's daughter by another marriage, saw a copy of her grandmother Gabrielle's will and brought a suit contesting the validity of Gabrielle's will. During the process of the litigation, in 1996, Jan died and the suit was taken up by a nephew, Paul Blake.

The court ruled that Gabrielle was too sick before her death and could not have signed the will. Handwriting experts also determined Gabrielle's signature was fake.

The AP reports that shortly before his death from alcoholism at age 47, Jack Kerouac wrote his nephew Paul a letter, expressing his desire to leave all of his work and belongings behind to his mother, "and not to leave a dingblasted (two expletives) thing to my wife's one hundred Greek relatives," he wrote. Unfortunately, it seems the Greek relatives prevailed, until now.

Commentary by Hughes Estate Group. The entire problem here revolves around Jack's and Gabrielle's estate planning. First, if Jack did not ever want his estate going to his prior wife Stella, there are numerous things he could have done to prevent that and provide for his mother at the same time. Jack just didn't think clearly here.

Second, Gabrielle obviously did not do proper planning before she died. If she wanted to leave everything to Stella, she could have done so. If not, she could have done so. She apparently did not do anything, allowing her daughter-in-law Stell to prepare and sign a forged will.

Third, Jack's daughter Jan should have been all over this situation back in 1973, when her grandmother Gabrielle died. Why did she wait for 21 years until 1994 to bring a lawsuit? Hmmmm, there is more to this story than is reported. But, nevertheless, the problem ultimately rests with Jack and Gabrielle and their shortsightedness.

I (Craig Hughes) never cease to be amazed at the frequency in which many wealthy people turn off their minds when it comes to adequate estate planning. I can understand folks with modest estates not getting around to planning, but the frequency of stories in which the wealthy disengage their minds in regard to estate planning is interesting.

He Wasn't What She Thought He Was.

Gabrielle Mee, who died last year, left her multi-million dollar estate to the Legionaires of Christ which is located in Orange, Connecticut. She had given the Order a good deal of money before she died as well. She was a devout woman who took Holy Communion every day of her life since the age of 12. She lived at the order's center for consecrated women in Greenville, R.I. for at least a decade.


The family is challenging the will based on a sex scandal involving the order's founder, the Rev. Marcial Maciel Degollado. He was accused of molesting more than a dozen young boys, fathering an illegitimate child, and misappropriate funds.

In May 2006, Pope Benedict XVI disciplined Degollado, inviting him to "a reserved life of prayer and penitence"; no explanation was given to the public or to the Legionaries of Christ. Degollado died in 2008 at age 87.

Family members say they believe that if Mee knew of the sex scandal and Vatican investigation, she would not have made the order her beneficiary.

The court has given the family until their October court date to gather evidence, subpoena records, and depose witnesses.

Big H/T to Patrick Madrid

It's Not Going Anywhere. At Least For Now.

The de Young Museum's collection of Papua New Guinea tribal art, which has been the subject of a lengthy inheritance dispute, is not going anywhere. San Francisco judge A. James Robertson II upheld a temporary order preventing the collection from being seized or sold to pay for part of the $30 million debt John Friede owes his brothers in the matter of the settlement of their mother's estate.

We've followed the story here, here, and here,

The mother of the Friede brothers was Evelyn A.J. Hall, sister of publishing tycoon Walter Annenberg.
Read more at sfgate.com.

Beat it, Just Beat it

According to legal documents filed by Katherine Jackson's attorneys, Michael Jackson's trust included a "no-contest clause." If a beneficiary attempts to challenge the terms of the trust terms in court, the challenger can be disinherited.

Apparently Katherine Jackson has not completely given up on administering Jackson's estate, so she is stepping lightly and asking the court to determine if an objection to the appointment of trust-stipulated trustees John McClain and John Branca would constitute a violation of the no-contest clause. A hearing is scheduled to take place Aug. 3.

In Utah, a no-contest clause is a sure sign of a boilerplate document. Here, no-contest clauses are simply unenforceable if probable cause exists for instituting a contest. (Utah Code sections 75-2-515, 75-3-905, and 75-7-112.) It is often quite easy for a beneficiary to establish some probable cause for contesting a will or trust. That is not to say that the contest will succeed; such contests in fact often fail. But it is difficult to disinherit a beneficiary for bringing the contest. If a person has a concern about preventing contests, we at Hughes Estate Group have foolproof measures to prevent such contests. Cheap "no-contest" clauses are not the solution.

Financial Abuse by Caretakers

The New York Times reports that estate battles are breaking out all over, on estates large and small, and oh boy are they nasty.

One story tells of a 99 year-old man who married his caretaker. Even though she wasn't in his will, his 48-year-old wife is suing for her statutorily defined share of his estate. His sons say he suffered from severe dementia.

Another caretaker is being accused of tricking a woman she took care of for eight years. Three years after the woman was diagnosed with dementia the caretaker drained the bank accounts and transferred the home into her name.

A good probate and estate planning attorney can ensure these types of situations do not occur. The way to do so is with comprehensive powers of attorney, thorough caregiver agreements, very tight amendment and revocation procedures in documents, complete funding of trusts, and clear and appropriate communication with beneficiaries and fiduciaries while you are competent. For Utahns, contact Hughes Estate Group, Attorneys, (800-422-0627) if anything mentioned in this article strikes close to home.

Incomplete Pass--McNair and Estate Planning

Professional quarterback Steve Mcnair cheated on his wife and was killed by his girl friend. He had sons from prior liaisons with different women. He earned more than $75 million during his 13-year NFL career with the Titans and Ravens, and--you guessed it--he never completed any estate planning.

It appears that settling Steve McNair's affairs is going to be messy.

The Tennessean reports that the family of at least one of the two sons born before McNair's marriage will file a claim for a share of the slain quarterback's estate.

McNair didn't leave a will and his widow Mechelle has filed court papers saying she and sons Tyler, 11, and Trenton, 6, are the heirs. Mechelle's probate petition states that she cannot confirm whether two other boys are Mr. McNair's children.

One of those boys, McNair's oldest (alleged) son, Steven L. McNair Jr., is a senior and star wide receiver at Oak Grove High in Hattiesburg, Miss.

His second (alleged) son, Steven O'Brian Koran McNair, 15, lives in Mount Olive, Miss. The younger Steven's grandmother told the Tennessean that the boy received $500 a month for child support.

So many problems that could have been handled so easily with good estate planning.

Come Here Sweetie Little Hubby-Pig!

Nina Wang, a.k.a. Little Sweetie, is in the news again. The fight for her inheritance goes on. The fight is centered around the existence of two wills, one in 2002 which gives Wang's $4 billion dollar estate to a foundation linked to the family's privately-held company and one dated to 2006, which was drafted while Wang was suffering from cancer. This later will gives her estate to her feng shui master, Tony Chan, a married man 23 years younger than herself. Mr. Chan has been arguing his case based on claims he had a marital type relationship with Wang, even though he is married and has three children (one is named Wealthee Chan).

Mr. Chan's case rests largely on his relationship with Mrs. Wang, reports the New York Times. He claims Wang had pet names for him and called him (translated from Cantonese) “Hubby,” “Hubbykins” and the rather unfortunate sounding “Hubby-pig.” This epic romance started out with a head rub that cost the wealthy land tycoon $6500.