Strangest Wills of All Time

Estate planning is typically a serious matter, with most wills being viewed as solemn and straightforward documents. However, history has its share of those that are anything but ordinary. From quirky requests to strange stipulations, some individuals have used their wills to express creativity and leave behind an unconventional—yet memorable—legacy. These distinctive demands are not only amusing but also underscore the significance of thoughtful estate planning. This article will examine some of the oddest estate planning choices of all time.

The billionaire who left 12 million to her dog

  • Leona Helmsley, a billionaire hotelier famously known as the “Queen of Mean,” caused a media storm when she left $12 million to her beloved Maltese dog, Trouble, after her death in 2007. However, a judge later reduced the amount to $2 million, as it was considered excessive. The funds were intended to ensure Trouble’s care, including a full-time security team due to death threats made against the dog. Trouble lived out the rest of her life comfortably, though on a reduced budget

Random inheritance

  • In one of the more unusual inheritance stories, Luis Carlos de Noronha Cabral da Camara, a Portuguese aristocrat, left his estate to 70 random strangers chosen from a Lisbon phone book. With no close family or friends, he made this unconventional choice when drafting his will in 1988. When he passed away in 2007, the selected beneficiaries were notified, many of whom initially thought it was a joke.

Mustache condition

Englishman Henry Budd who died in 1862 became famous for odd stipulation in his will. He left a significant inheritance to his sons with one peculiar condition: neither of them was ever allowed to grow a mustache.

Using a will to get even with a spouse

Samuel Bratt saw his chance to settle a score with his wife after his passing in 1960. Since she never allowed him to smoke during his lifetime, his will had a requirement that she would inherit £330,000 ($509,025) on one condition: she had to smoke five cigars a day.

Long wait “spite clause“

Industrialist Wellington Burt took inheritance delays to a whole new level. His will dictated that his heirs would have to wait 21 years after the death of his last surviving grandchild who was alive at the time of his death. This resulted in his heirs waiting 92 years before they could access his wealth.

A cat mansion

  • Dusty Springfield, an English singer who died in 1999, ensured that her beloved cat, Nicholas, would live in luxury after her death. Her will included detailed instructions, such as playing Nicholas’s favorite songs, feeding him imported baby food, and creating a specially furnished room for him, complete with a cat tree and a bed lined with Dusty’s nightgown.

Guinness World Record richest cat

  • In 1988, British antiques dealer Ben Rea left £7 million ($12.5 million) to his cat, Blackie, making him the world’s wealthiest cat—a record that still stands. Rea directed that his fortune be shared among three cat charities, with instructions to care for Blackie for the rest of his life.

Buried in a Pringles can

  • Fredric J. Baur, the inventor of the iconic Pringles can, passed away in 2008 and was cremated. Honoring his unique request, his family placed part of his ashes inside a Pringles can before burial.

Consult an Experienced Estate Planning Attorney

Whether you have traditional plans in mind, or whether you are looking to do something unique like some of the unusual choices discussed in this article, we are here to help! At David Knecht Law, we have extensive experience in estate planning and can help you create the plan that is just right for you and your loved ones. We focus on serving Vacaville and Fairfield clients. Contact us today at 707-451-4502.

  

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Fairfield Attorney, Fairfield Lawyer, Living Trust , Living Will, Probate Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Are Holographic Wills Valid in California?

A question that many aging adults have is whether a handwritten will is legally enforceable in California. This type of will is known as a holographic will, which is a written document written by hand (not typed on an electronic device device) without witnesses. This article delves into the legal analysis of holographic wills in California, providing an in-depth look at the relevant laws and a notable case, Newman v. Casey, which sheds light on this topic.

Legal Framework for Holographic Wills in California

In California, holographic wills are indeed recognized as valid under certain conditions, as outlined in California Probate Code § 6111. To be considered valid, a holographic will must meet the following criteria:

  • Handwritten and Signed by the Testator: The entire will or the material provisions must be in the handwriting of the testator. Additionally, the testator must sign the document.
  • Intent: The will must clearly indicate that the document is intended to serve as the testator’s will.
  • Date: While not strictly necessary, including the date is advisable. An undated holographic will can present complications if there is a question about its timing relative to other wills.

These requirements make holographic wills a viable option for individuals who prefer a simple and informal way of expressing their final wishes. However, due to the lack of formality, holographic wills can lead to disputes and legal challenges, particularly if the language is ambiguous. In California, while there is no strict limit on the situations in which a holographic will can be valid, it is essential that the document meets the fundamental requirements of handwriting, signature, and intent to be recognized by the court.

Newman v. Casey: A Landmark Case

Newman v. Casey, the landmark case involving holographic wills, was decided by the California Court of Appeal in 1995 and provides precedent regarding the validity of holographic wills. In this case, the court examined the holographic will of Jere P. Casey, which was contested by Patricia Newman and others.

Facts of the Case: Jere P. Casey wrote a holographic will that left his estate to his partner, Patricia Newman, and others. The will was handwritten, signed by Casey, and included material provisions that specified the distribution of his assets. However, the will lacked a date, leading to a dispute over its validity.

Court’s Decision: The court upheld the validity of Casey’s holographic will. It emphasized that while the absence of a date could complicate matters, it did not invalidate the will as long as the document clearly demonstrated the testator’s intent and was signed by the testator. The court found that Casey’s handwritten document met the essential requirements under California law.

Implications: The ruling in Newman v. Casey reaffirmed that the core elements of a holographic will—handwriting, signature, and clear intent—are paramount. It also highlighted that while the absence of a date may complicate matters, it does not necessarily render the will invalid unless there are competing wills or other disputes about timing.

Consult the Law Office of David Knecht

Even though a holographic will is a simple solution, there are typically limitations and weaknesses of a holographic will that make them less effective for estate planning than other more formal tools. Consulting with an experienced estate planning firm, such as the Law Office of David Knecht, can help address potential issues and ensure that your will meets all legal requirements. Seeking legal counsel is particularly important to minimize the risk of disputes and ensure clarity in the document. Contact us today at (707) 451-4502. Our experienced team is ready to assist you.

Filed Under: California Estate Plan, Estate Planning, Fairfield Attorney, Fairfield Lawyer, General

Warren Buffett’s Estate Plan: Key Takeaways for Effective Wealth Transfer

Warren Buffett, one of the most successful investors of all time, is not only known for his business acumen but also for his carefully planned estate strategy. Buffett has consistently emphasized philanthropy, efficient wealth transfer, and minimizing taxes, which serve as key pillars of his estate plan. While his fortune is massive, the principles behind his estate planning strategies can provide valuable lessons for anyone looking to efficiently transfer wealth to future generations while supporting charitable causes.

Here are the key takeaways from Warren Buffett’s estate plan and what individuals can learn to apply in their own estate planning strategies:

Buffett’s “Death Plan” to Dodge Taxation

  • Minimizing Taxes: One of the most notable elements of Buffett’s estate plan is his focus on reducing the tax burden on his estate. A Yahoo Finance article reveals that Buffett intends to donate over 99% of his wealth to charity, significantly minimizing the estate tax impact.
  • Charitable Giving as a Tax Strategy: By directing his wealth toward charitable causes, Buffett not only benefits society but also reduces the taxable portion of his estate. For individuals with smaller estates, strategies such as charitable remainder trusts (CRTs) and setting up family foundations can serve a similar purpose—supporting causes while reducing tax liabilities.

Generational Wealth and Family Control

  • Trusting the Right People: Buffett has ensured that his three children will manage portions of his estate through charitable foundations, as highlighted in a CNBC article. By empowering his children to oversee specific aspects of his wealth, Buffett ensures that his legacy aligns with his long-term goals.
  • Choosing Executors and Trustees: One of the critical lessons from Buffett’s approach is the importance of selecting trusted individuals to manage your estate. This ensures that wealth is handled responsibly, according to the testator’s wishes. Even for smaller estates, choosing a trustworthy executor or trustee is vital to ensure that your wealth is passed down efficiently and according to your plans.

Philanthropy and Legacy

  • Leaving a Legacy: In a thought-provoking article from The Blum Firm, Buffett’s estate philosophy reflects his belief that wealth should serve a greater purpose. His plan to give away most of his fortune, while still leaving his children with enough to manage charitable foundations, showcases his commitment to leaving a legacy of philanthropy and responsible wealth management.
  • Aligning Your Estate with Your Values: You don’t need to be a billionaire to leave a lasting legacy. Smaller estates can still have a significant impact through thoughtful philanthropy. Consider how a portion of your estate could support causes important to you—whether through a local charity, scholarship fund, or community project.

Practical Estate Planning Lessons from Buffett’s Approach

  • Charitable Giving for Tax Reduction: Incorporating charitable donations into your estate plan can help reduce the taxable portion of your estate while supporting causes you care about.
  • Select the Right Executors or Trustees: It’s crucial to choose trusted individuals to manage your estate after your passing. These individuals will ensure that your wealth is distributed according to your wishes and that your estate is handled efficiently.
  • Plan for Your Legacy: Consider how your wealth will impact your loved ones and your community. Like Buffett, your estate can reflect your values and goals, whether through donations to charity or establishing family foundations.
  • Provide Clear Instructions: Make sure your estate planning documents are detailed and leave no room for confusion. Specify how your assets should be distributed, who should oversee the estate, and how charitable donations or foundations should be managed.

Consult the Law Office of David Knecht

Whether you are interested in preserving your wealth for your heirs or making a lasting impact through philanthropy, our experienced team can help you create a plan that reflects your values and goals. At David Knecht Law, we are here to guide you through this process and help you create a legacy that aligns with your vision for the future. We understand that estate planning is a deeply personal process, and we are committed to helping our clients navigate the complexities of the estate planning process. Contact us today at (707) 451-4502. Our experienced team is ready to assist you.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Living Will, Power of Attorney, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Celebrity Estate Planning: To Give or Not to Give?

If you have given your estate plan some thought, you may have pondered whether it is better to leave your estate to your children or to a charitable cause? This is an important consideration for estate planning for many people, and it is definitely a hot topic for celebrity estate planning.

The answer to this question is deeply personal and may involve trying to find the balance between promoting hard work and self-sufficiency in your children, but also allowing future generations to benefit from your dedication and labors. While a few stars, such as Whoopi Goldberg plan to leave their wealth to their children, many of the rich and famous take a different view.

This article will discuss high net worth individuals who are not planning to leave a large inheritance for their children and some of their reasons why, with information from these publications: Us Weekly, E! Online, South China Morning Post, Honey Nine, and BBC News

Celebrities Who Do Not Want to Leave a Large Inheritance

  • Daniel Craig – James Bond actor Daniel Craig is one such celebrity who has made headlines for his unconventional approach to estate planning. Craig has stated, “Isn’t there an old adage that if you die a rich person, you’ve failed?”
  • Mila Kunis & Ashton Kutcher – The couple has stated they don’t plan to create trust funds for their children and believe in teaching the value of hard work.
  • Gordon Ramsay – Celebrity chef Gordon Ramsay shares a similar sentiment. Ramsay has been very vocal about not leaving his fortune to his children. He said, “It’s definitely not going to them, and that’s not in a mean way; it’s to not spoil them.” Ramsay believes that his children should work for their own success and not rely on his wealth.
  • Mick Jagger – Rolling Stones frontman Mick Jagger also plans to leave his children out of his vast estate. Jagger’s approach is part of a broader trend among some of the world’s richest individuals who believe that substantial inheritances can stifle ambition and drive.
  • Elton John – The iconic musician has said he plans to give most of his fortune to charity rather than his children.
  • Sting – The renowned musician has indicated that his children will not receive his wealth, emphasizing self-reliance.
  • Simon Cowell – The TV personality and producer has stated that he intends to donate his fortune to charity rather than leaving it to his son.
  • Mark Zuckerberg – The Facebook founder and his wife, Priscilla Chan, have pledged to give away 99% of their wealth during their lifetimes.
  • George Lucas – The “Star Wars” creator has committed to donating much of his wealth to education and philanthropy.
  • Warren Buffett – The billionaire investor has long been an advocate for giving away the majority of his wealth to charitable causes.
  • Jackie Chan – Martial arts legend Jackie Chan is known for his charitable endeavors and has announced that he will donate his entire fortune to charity, rather than leaving it to his son. Chan believes that his son should earn his own way, just as he did.
  • Bill Gates – While not a Hollywood star, Bill Gates‘ approach to estate planning has influenced many in the entertainment industry. Gates has pledged to leave a small portion of his wealth to his children, with the majority going to the Bill and Melinda Gates Foundation. Gates believes that giving his children a vast sum of money would not be beneficial for them in the long run.

Estate planning in Hollywood showcases a wide array of philosophies. The attorneys here at the Law Office of David Knecht, we can help identify your priorities and establish or update an estate plan that will carry out your wishes. Whether you are looking to create a new will or trust, or need to make changes to existing documents, our experienced team is ready to assist. Contact us today at 707-451-4502.  

 

Filed Under: California Estate Plan, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

What do your kids want to inherit?

Are you wondering what your kids want to inherit from you? The answer may surprise you. A recent study on the inheritance expectations of Millennials and Gen Z reveals insights into the hopes and expectations of the next generations.

Key Findings:

  • Inheritance Expectations: A notable 68% of millennials and Gen Z members anticipate receiving an inheritance or have already received one.
  • Average Inheritance Value: On average, these inheritors expect to receive around $320,000.
  • Saving and Investment Plans: Among those receiving an inheritance, 76% plan to either save or invest the money.
  • Debt Repayment Goals: Approximately 40% plan to use their inheritance to pay off debt, with 69% of those carrying over $10,000 in debt hoping their inheritance will cover it.
  • Charitable Giving: A vast majority (92%) of those expecting an inheritance do not intend to donate any part of it.
  • Parental Support: One-third of respondents either already support or expect to financially support their parents.
  • Views on Wealth Transfer: Over half believe that the upcoming wealth transfer could exacerbate economic inequality.

What Millennials Value

According to an AARP article, Millennials place a high value on family heirlooms that carry sentimental value, particularly:

  • Personal letters
  • Cookbooks with family recipes
  • Jewelry with sentimental value
  • Furniture with family history
  • Artwork created by family members
  • Tools or items related to family traditions
  • War memorabilia or items of historical significance
  • Handcrafted items or DIY projects from ancestors
  • Vintage toys or games shared during childhood

What Millennials Don’t Want

An article from The Desert Sun highlights several items that Millennials typically do not want, including:

  • Large furniture
  • Formal dinnerware
  • Antiques
  • Silverware sets
  • Heavy cabinets
  • Bulky dining room sets
  • Fine China
  • Ornate rugs
  • Collectibles with no personal significance
  • Outdated electronics or gadgets

The Importance of Communication

Given these shifting preferences, it is crucial for Baby Boomers to have open and honest conversations with their children about inheritance. An article from Elder Law Answers emphasizes the importance of these discussions, with best practices for facilitating communication:

  • Start Early: Initiating these conversations sooner rather than later allows for ample time to address any concerns and make necessary adjustments to the estate plan.
  • Be Transparent: Clearly explain the reasoning behind your decisions, particularly if they diverge from traditional expectations. Transparency helps build trust and understanding.
  • Listen: Give your children the opportunity to express their preferences and concerns. Understanding their perspective can help in making decisions that are respectful of their wishes.
  • Involve a Professional: An estate planning attorney can provide valuable guidance and help mediate these conversations, ensuring that all legal aspects are properly addressed.

Contact a California Attorney Experiences with Estate Plannin

Estate planning can be very personal and individualized, with a focus on what will make your beneficiaries happy. We want to help you accomplish the estate planning goals that are right for your loved ones. For personalized legal advice on estate planning, visit www.davidknechtlaw.com or call us today at (707) 451-4502.

Filed Under: California Estate Plan, Living Trust , Probate Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Is A Living Trust the Right Tool for Your Inheritance?

When planning for the future, ensuring that your assets are distributed according to your wishes is a critical step. One popular tool for estate planning in California is the revocable living trust. But is it really the best way to pass on your inheritance? Let’s explore the benefits and considerations of using a living trust, integrating insights from recent discussions and guides with information sourced from The Motley Fool.

What is a Revocable Living Trust?

A revocable living trust is a legal entity created to hold ownership of your assets. Unlike a will, which only takes effect after you die, a living trust is operational during your lifetime and can be altered or revoked at any time.

Benefits of a Living Trust

  1. Avoiding Probate: One of the most significant benefits of a living trust is that it helps your estate avoid probate. Probate is the legal process through which a will is validated and the deceased’s assets are distributed. This process can be lengthy, costly, and public. By placing assets in a living trust, you can bypass probate, allowing for a quicker and more private distribution of assets to your beneficiaries.
  2. Flexibility and Control: A living trust provides flexibility and control over your assets. You can specify how and when your beneficiaries receive their inheritance, which can be particularly useful if you have minor children or beneficiaries who may not be able to manage large sums of money responsibly.
  3. Incapacity Planning: A living trust also offers protection if you become incapacitated. If you are unable to manage your affairs due to illness or injury, your designated successor trustee can step in and manage the trust on your behalf without the need for court intervention.
  4. Privacy: Wills become public record once they go through probate, exposing your financial affairs to public scrutiny. A living trust, on the other hand, remains private, protecting your family’s privacy and financial information.

Considerations and Drawbacks

While living trusts offer many benefits, they are not without their drawbacks and considerations:

  1. Cost and Complexity: Setting up a living trust can be more expensive and complex than creating a will. There are upfront costs for drafting the trust document and ongoing costs for managing the trust. Additionally, you must retitle your assets into the name of the trust. The complexity and cost are key considerations to weigh against the benefits.
  2. Ongoing Management: A living trust requires active management. You need to ensure that any new assets acquired are transferred into the trust.
  3. Not Always Necessary: For some people, particularly those with smaller estates, the benefits of a living trust may not justify the costs and complexity. In such cases, other estate planning tools, such as a will combined with payable-on-death accounts and beneficiary designations, might be sufficient. Financial Samurai suggests evaluating your specific situation to determine if a living trust is the best solution.

When is a Living Trust the Best Option?

A living trust may be the best option if you:

  • Own property in multiple states, as it can simplify the transfer process and avoid probate in each state.
  • Have a complex family situation, such as children from multiple marriages, where you need to clearly outline your wishes to avoid disputes.
  • Want to ensure privacy for your estate and avoid the public process of probate.
  • Have minor children or beneficiaries who may not be able to manage their inheritance responsibly.

Contact a California Estate Planning Attorney

A living trust can be a powerful tool for estate planning in California. To determine if a living trust is the best way to pass on your inheritance, it’s essential to consider your unique circumstances and consult with an experienced estate planning attorney. At the Law Office of David Knecht, we have extensive experience in creating tailored estate plans that meet your specific needs and goals. Contact us today at 707-451-4502 to discuss whether a living trust is right for you and how we can help secure your legacy.

Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Living Trust , Trust Administration Attorney , Vacaville Lawyer

The Importance of Living Trusts in Estate Planning: Lessons from Matthew Perry’s Estate

New details emerging about Matthew Perry’s estate have brought renewed attention to the critical role of living trusts in comprehensive estate planning. The beloved Friends actor passed away eight months ago, and a recent Newsweek article reported that one feature in his will has people “scratching their heads.” See https://www.newsweek.com/matthew-perry-will-estate-millions-death-1921170

Why did an actor who was reportedly worth around $120 million at the time of his death, have just a little more than $1.5 million in his personal bank account?

Why are trusts a common tool for estate planning in California?

  • Wills and estate plans often work together, where you fund the trust during your lifetime, and the will would be a catch-all that transfers any remaining assets to the trust upon your death.
  • A living trust, also known as an inter vivos trust, is a legal document created during a person’s lifetime where a designated trustee holds legal title to the property for another person. Unlike a will, which only goes into effect after death, a living trust is effective immediately and can manage the distribution of assets both during the grantor’s life and after their death.

What are some of the benefits of a living trust?

  • Avoiding Probate: Probate can be time-consuming and costly, often tying up assets for months or even years. By placing assets in a living trust, you can prepare for your beneficiaries to receive their inheritance without the delays and expenses associated with probate.
  • Maintaining Privacy: Unlike a will, which becomes a public document upon your death, a living trust remains private. For high-profile individuals like Matthew Perry, this privacy is crucial in protecting their estate from public scrutiny.
  • Incapacity Planning: You can designate a trustee to manage your affairs without the need for court-appointed guardianship if you become incapacitated, ensuring that your finances are handled according to your wishes without interruption.
  • Flexibility and Control: With a living trust, you maintain control over your assets and can make changes as needed. You can add or remove assets, change beneficiaries, or amend the terms of the trust as your circumstances change.
  • Efficient Estate Settlement: A living trust can expedite the distribution of assets to your beneficiaries, reducing the time your loved ones have to wait to receive their inheritance.

Contact an Experienced Estate Planning Attorney

The importance of estate planning cannot be overstated, and the settlement of the Matthew Perry estate is an example of how thoughtful planning and preparation can help ease the burden of your loved ones.  For Californians, working with an experienced estate planning attorney can help you create a living trust tailored to your unique needs and circumstances. At the Law Office of David Knecht, we have extensive experience in all aspects of estate planning and we focus on serving clients in Solano, Napa and Yolo. Contact us today at 707-451-4502.

Filed Under: California Estate Plan

Uncertain Times Call for Creative California Estate Planning Strategies

For many people, today’s uncertain times can be a source of anxiety, with inflation, international conflict, and political uncertainties creating a question about whether decisions today will still be wise in future years. Estate planning in these uncertain times calls for thoughtful and creative estate planning. This article will summarize thoughts on how to do this as published at Kiplinger.com, see 

 

Recognize that regulatory frameworks can change. 

  • The Tax Cuts and Jobs Act of 2017 increased the estate tax exemption.

 

  • The Secure Act 1.0 and 2.0 made changes to inherited IRA’s, minimum distributions, trusts and more. 

 

  • The 2024 Presidential Election may have implications for your estate plan. 

 

  • Navigating these changes can create challenges for your estate plan, but it can also create real opportunities for strategic and advanced planning. 

 

Creative Estate Planning Requires an Understanding of How the System Works

  • Many tax-advantaged estate planning strategies involve giving up some control of your money to protect it. 

 

  • After spending years accumulating money and property, it may be difficult to give up that control, especially when times of turmoil may have decreased its value or may make you worry about future drops. 

 

  • One strategy is to focus on long-term planning and concentrate on the signals (for example, markets generally rise), and not the noise (daily fluctuations in value). 

 

 What Is the Focus of Effective Strategies 

  • Flexibility is the key to long-term planning. Know what your goals are to make sure that your documents are drafted in a way to accomplish your goals and provide flexibility to adjust for changes in those goal. 

 

  • Balance is a second key to long-term planning. Be reactive but not over-reactive. Many proposed changes do not come to fruition, so be aware that you may need to silence some of the media noise of proposed changes that may never be realized. 

 

  • Staying diligent is the third key to long-term planning. Many people wish that estate planning were a one-time event that they could check off their list, but the most effective estate plans are re-evaluated regularly. Revisit your estate plan regularly to make sure that it is still aligned with your goals and regulatory changes. 

Contact an Experienced Estate Planning Attorney

At the Law Office of David Knecht, we make it our business to stay up-to-date on regulatory changes that impact estate planning. We will customize a plan to help you find creative solutions to meet your estate planning goals, and we will work with you to keep it current and responsive to regulatory changes. Contact us today at 707-451-4502. 



Filed Under: California Estate Plan

High Profile Estate Cases

There have been some very interesting high profile estate cases lately, and this article will highlight a few that have been in the news. They show the importance of estate planning and also good communication with loved ones. 

 

Prince’s estate is finally settled after 6 years.

  • Prince did not leave a will, which lead to a legal battle over his estate.
  • Prince’s lawyer, L. Londell McMillan, is quoted as saying that he is “relieved and thrilled to finally be done with the Probate Court system and bankers who do not know the music business and did not know Prince.”
  • The Estate was valued at 156.4 million dollars. 
  • A Minnesota judge has approved a deal that will divide the estate evenly between two legal entities, one of which is controlled by Prince’s half siblings

 

  • Read the full story here: 

 

Country singer, Naomi Judd left her daughters out her will. 

  • Naomi Judd, of the Grammy-winning duo, the Judds, died at 76 of suicide. 

 

  • The Judds were soon to be inducted into the Country Music Hall of Fame at the time of her death. 

 

  • The country music singer named her husband as executor of the estate with full authority and discretion to do as he sees fit with the estate. 

 

 

The Estate of Michael Jackson has made $2 B in 13 years since his death

  • As reported by the Sun, Michael Jackson’s estate has made 2 billion dollars in the years since his death, despite being homeless in some of his final months. 

 

  • What is the reason for the turn around? Recall that at the time of Michael Jacksons death, Neverland was facing foreclosure. As per estate lawyer Jeryll S. Cohen: “The Executors have been able to create exceptional and unique opportunities that did not exist at the time of Michael Jackson’s death to generate substantial revenue…”

 

Consult the Law Office of David Knecht

The mishaps and successes of the rich and famous highlight the need for proper estate planning when many assets are involved, but estate planning is also important for the average person who wants to make sure that their loved ones know their wishes and properly divide what they leave behind. If you are interested in getting started on an estate plan, or if you need help updating an existing plan, please contact the Law Office of David Knecht at 707-451-4502. We have extensive experience in estate planning and can help you make decisions that are right for your loved ones and you. 

Filed Under: California Estate Plan

Making a 529 Qualified Tuition Plan Part of Your Estate Plan

You may have heart that a 529 ,“qualified tuition plan,” is estate planning magic and wondered what the advantages are with this planning mechanism. This article will explain what a 529 plan is and why it can be very beneficial as an estate planning tool, with an introduction about 529 plans summarized from https://www.sec.gov/reportspubs/investor-publications/investorpubsintro529htm.html.

  • What is a 529 plan?

A 529 plan is a tax-advantaged savings plan. It is designed to encourage saving for future education costs. They are known as “qualified tuition plans” and are sponsored by states, state agencies, and educational institutions.

  •  What are the two kinds of 529 plans?

The two kinds of 529 plans are prepaid tuition plans and education savings plans. With the prepaid tuition plan, the account holder purchases credits at participating colleges/universities for future tuition for the beneficiary. With education savings plans, the saver opens an account for the beneficiary’s future tuition, mandatory fees, room and board. The saver can choose various investment portfolio options to grow the initial investment.

  • Why is flexibility one of the benefits of a 529 plan for estate planning?

One of the main benefits of a 529 plan for estate planning purposes is the unparalleled flexibility. The saver can remain the owner of a 529 plan and retain the power to change the beneficiary to a qualifying family member (which includes children, grandchildren, nieces and nephews and others). This is better than another estate planning tool, the irrevocable trust, where the saver cannot act as a trustee and cannot retain the power to change beneficiaries.

  • How does the “front load” factor in as a benefit of a 529 plan for estate planning?

The annual exclusion from gift tax allows a grantor to transfer a set amount per year, per person. This amount is $16,000 in 2022 (See https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022)

The saver can make five years of annual exclusion gifts in a single year and use no transfer tax exemption. If the saver is married and chooses gift-splitting, the couple can transfer $150,000 to a 529 plan in a single year and use no estate and gift tax exemption. See your attorney or tax professional for more details as the proper elections must be made to take advantage of this benefit.

CONTACT THE LAW OFFICE OF DAVID KNECHT

If you need assistance with understanding a 529 Plan or estate planning in California, contact the  Law Office of David Knecht. We have extensive experience with estate planning and can set up a customized plan that’s right for you and your loved ones. Contact us at 707-451-4502 for more information.

 

Filed Under: California Estate Plan
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