Thursday, April 3, 2014

Dividing the Estate’ play about family inheritance dispute mirrors real one

Check out this article we found:

The Gordon family is having some trouble.  In 1987, when Texas feels the recession badly.  The source of the family fortune, a 5,000-acre farm, is barely profitable and real estate values have plummeted.
The three Gordon siblings, who haven’t worked a day in their lives, are squabbling about when and how the family assets should be divided. Their elderly mother, Stella, who controls the family wealth, insists there will be no division while she lives, and that the estate will remain intact after her death.
Dividing the Estate, Horton Foote’s comic drama about the dispute, premiered in 1989. But it’s as fresh today as it was then, said William Hayes, producing artistic director of Palm Beach Dramaworks in West Palm Beach, where the play opens today.
Many of his donors are embroiled in similar situations.
“I’m disturbed about the number of families and siblings who are divided over money and will issues,” said Hayes, who directs the production. “Many children have a strong sense of entitlement to their parents’ money. Some are disputing over their parents’ wills when their parents are still alive.”
Family disputes over inheritance are nothing new in Palm Beach. For example, when frequent visitor Brooke Astor died in 2007, leaving behind a $100 million estate, a battle broke out between her grandson, Philip Marshall, and his father, Anthony Marshall, who Philip accused of defrauding Astor in her declining years. Anthony Marshall was found guilty of a number of fraud and conspiracy charges, as well as first-degree grand larceny. The case is under appeal.
The four sons of Fred Koch, co-founder of energy conglomerate Koch Industries, spent nearly 20 years feuding about whether two brothers, Charles and David, defrauded the other two, William and Frederick, and other stockholders out of more than $2 billion when they sold their shares of Koch Industries in 1983. The brothers settled in 2001.
“Unfortunately, it happens a lot,” said estate-planning attorney Danielle Mayoras, author with her husband, Andy, of Trial & Heirs: Famous Fortune Fights! “That’s what inspired us to write the book. It happens whether you’re a multi-millionaire or have a modest estate. All the emotions siblings had while growing up, their feelings about second-marriage situations — everything boils to the surface when someone passes away.”
Foote wrote many plays about small-town Texans, as well as Academy Award-winning screenplays for To Kill a Mockingbird and Tender Mercies.
The Gordon family’s “easygoing complacency — a firm confidence in their inherited right to all the good things in life and their fundamental lack of interest in the ultimate costs of their comfort, long borne by others — they look awfully familiar.” said The New York Times in its review of the 2007 off-Broadway production.
Hayes agrees. “There’s an increasing sense of entitlement and too much emphasis on money,” he said. “It’s particularly an issue in our own county.”
In Dividing the Estate, Stella lives in the past and can’t even keep the details of her own relatives’ lives straight. Her self-absorbed daughter, Mary Jo, and her alcoholic playboy son, Lewis, have been siphoning money off the Gordon estate for years. Their sister, Lucille, is clueless. Only Lucille’s son, who runs the family farm, and his socially conscious fiancĂ©e Pauline have any awareness of the outside world.
Less selfishness and better estate planning might have mitigated the Gordons’ distress. Instead, they seem likely to follow the path of many people the Mayorases meet during their speaking engagements around the country. “Everywhere I go, people who have had strong estate battles years ago still carry the scars,” Mayoras said.
- See more at: http://www.palmbeachdailynews.com/news/news/local/dividing-the-estate-play-about-family-inheritence-/nfMYR/#sthash.d48OFtTn.dpuf

Estate Dispute - Rosa Parks

As an estate planning attorney in Orange County (http://www.tompkins-law.com/estate-plan-reviews-and-amendments), I know firsthand how draining an estate dispute can be.  I recently read about the ongoing Rosa Parks estate dispute and wanted to share it with my blog readers.

Rosa Parks is an American household name and classic role model.  She is known as, "The mother of the freedom movement," in congress.  February 4 is a national holiday, and so is the historical day of the arrest that made her famous.  She was arrested for refusing to give up her seat on the bus for a white passenger.  These two days are known as, "Rosa Parks Day," in 2 states, California and Ohio.

Rosa Parks quickly became one of the most important components of the Civil Rights Movement.  She also received the Congressional Medal of Gold and the Presidential Medal of Freedom to recognize her for the role she played.

To read more about the Rosa Parks Dispute please visit this link:

http://blog.tompkins-law.com/2014/03/insight-on-rosa-parks-estate-dispute.html

Tuesday, January 28, 2014

Estate Planning For The 99%

Check out this article :

Lawyers and wealth managers who specialize in passing assets to the next generation love to brag about their ultra high net worth clients. But privately they admit that many (or most) of those who seek their help with wills and trusts don’t fall in this category. And lately they would have us believe that tax planning for these folks, most notably those with assets in the $5 million to $10 million range, is very, very, challenging.
That was one of the continuing themes last week at the Heckerling Institute on Estate Planning in Orlando, the annual Super Bowl on the subject. The catalyst for the discussion among the 2,900 lawyers, accountants and insurance pros gathered there, was a planning device that Congress introduced on an interim basis starting in 2011 and made permanent with the American Taxpayer Relief Tax Act of 2012. Tax geeks dubbed it “portability.”
Despite its wonky name (which mind you does not actually appear in the tax code so don’t blame Congress for this particular jargon), portability solved a pressing problem and had all the hallmarks of a consumer-friendly new rule for the 99%. In a nutshell, the law made it possible for widows and widowers to carry over the estate tax exemption of the spouse who died most recently and add it to their own. The tax law refers to the sum carried over as the “deceased spousal unused exclusion amount.” In common parlance it has become known by the short-hand, “the DSUE amount.”
At current rates this enables married couples to transfer $5.34 million apiece ($10.68 million together) tax-free. This tax-free amount (also called the “exclusion” or “exemption”), which is adjusted for inflation, will reach $6.58 million 10 years from now, and $8.95 million in 20 years, according to projections by Bernstein Global Wealth Management.
Public service announcement: To take advantage of this option or “elect portability” (in legal lingo), the executor handling the estate of the spouse who died must file an estate tax return (Internal Revenue Service Form 706), even if no tax is due. This return is due nine months after death with a six-month extension allowed. (For questions and answers about other aspects of portability, see “A Married Couple’s Guide To Estate Planning.”)

Medi-Cal Explained

The California Medical Assistance Program (AKA Medi-Cal) allows certain residents to seek medical benefits. Those who usually qualify for Medi-Cal benefits include families, seniors, people with disabilities, foster care children, pregnant women, or people suffering from diseases like tuberculosis, breast cancer or HIV/AIDS.  The California Department of Health Care Services (DHCS) and the Center for Medicare and Medicaid Services (CMS) jointly support Medi-Cal.  Many services covered are administered on a county level of California.

To read more check out this estate planning attorney in Orange County's blog:

 http://blog.tompkins-law.com/2014/01/an-estate-planning-attorney-answers.html

An Estate Planning Attorney of Orange County - The Difference Between Living Trusts and Wills

Wednesday, January 15, 2014

Evaluating Your Estate Plan

Check out this article we found:

INDEPENDENCE – Talking about estate planning is difficult and implementing an estate plan can be even harder. Questions often include: Who needs to be involved? What information do I need to gather? When is it the right time to start? Where do I start? How do I decide what to do? The Evaluating Your Estate Plan program can help in the planning process.
The Evaluating Your Estate Plan workshop will be held Wednesday, Jan. 29, at Heartland Acres Events Center, 2600 Swan Lake Boulevard, Independence, with registration starting at 9 a.m. The program runs from 9:30 a.m. to 4 p.m. The program will answer estate planning questions and helps prepare participants to work with their estate planning team.
The presenters for the program include Kelvin Leibold and Melissa O’Rourke, Iowa State University Extension and Outreach farm and business management specialists. O’Rourke is an attorney experienced in agricultural law and estate planning. Leibold joined ISU Extension in 1987 and has vast experience in working with agricultural clients in farm and business planning.

The one-day workshop will cover the language of estate planning, gift, estate and inheritance taxes, calculating retirement costs, and many other areas vital to creating a good estate plan. The workshops help those who are confused about building a plan for transferring farm assets or unsure what options are best for their farm operation and family.