Probate and Trust Administration

• Estate tax repeal means some spouses are disinherited
  Jan 02, 2010

  Estate tax repeal may result in surviving spouses being unintentionally disinherited.  This results from Congress spectacular failure, with 10 years warning, to pass a successor estate tax law to the one that allowed the estate tax to expire for 2010.
  
  Spousal disinheritance may occur under wills and trusts that have pecuniary funding formulas to determine how to fund the decedent's trust for estate tax purposes.  With no law having been passed to implement an estate tax, the decedent's share is now unlimited.  Under the old law there was a built in assumption that the decedent's share would be capped and the "overage" would go the surviving spouse.  The current state of the law may be a real quandry for some surviving spouses. - 1 - 10

• Estate taxes set to expire in 2010
  Dec 19, 2009

  Congress' failure to pass a new estate tax law means decedents who die in 2010 won't owe any estate taxes no matter how large their estate.  The current estate tax law calls for the repeal of the estate tax in 2010 and its return in 2011.  Congress spent most of this year making various proposals to extend the current law but none of them passed.  It now appears no new estate tax law will be passed this year.
  
  Congress almost surely will pass a new estate tax law in 2010.  As the article in the link above mentions, Congress will probably make whatever estate law is passed retroactive to the beginning of 2010. - 2 - 10

• Probate lawyer under criminal investigation for taking money from estate
  Dec 08, 2009

  A Milwaukee probate attorney is the subject of a criminal investigation for allegedly taking $1.6 million from his clients.  This is a lesson to anyone engaged in probate.  It is perfectly fine to deposit small amounts of money in an attorney's client trust account.  It is also acceptable to have money received in a settlement be sent to your attorney's client trust account.  It is never a good idea for that money to sit there for an extended period of time.  It is also a terrible idea to have your attorney invest your money for you. - 3 - 10

• Steve McNair's estate free to sell share of restaurant
  Nov 24, 2009

  A Tennessee probate court judge has ruled that Steve McNair's probate estate can sell the estate's ownership interest in a local restaurant.  Unsurprisingly, the probate court judge ruled that McNair's estate was not required to maintain its 80% interest in the restaurant.  Rather, the judge allow the probate estate to sell the interest in the restaurant in order to maximize its value. - 4 - 10

• Trust mills fined over $6 million
  Nov 01, 2009

  Some times bad things happen to bad people.  American Family Prepaid Legal Corp. and Heritage Marketing and Insurance Services Inc. were fined over $6 million by the Ohio Supreme Court.  The firms used high pressure sales tactics to inappropriate products to their clients.
  
  Both companies were found to be practicing law without a license.  Though not stated in the article, they probably left trust funding to their clients.  This will likely result in some families facing a probate that could have been avoided. - 5 - 10

• Katherine Jackson fires her probate attorney.
  Oct 23, 2009

  Michael Jackson's mother, Katherine Jackson, fired her to attorneys in her battle over her son's probate estate. Mrs. Jackson hired a new probate attorney to represent her. Mrs. Jackson was apparently dissatisfied with the two attorney, she had representing her and decided she needed a tried-and-true probate litigator to represent her in the ongoing battles over her son's estate.

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• Yes, a bad father can luck into an inheritance
  Sep 17, 2009

  A Ventura County probate court, and the appellate court that heard the case, ruled an absent father that owed back child support, and hadn't seen his son in 42 years still inherited from his probate estate because the son died without a will. Laura Barnes and Clifford Shellenbarger divorced over 40 years ago.  Shortly after they were divorced their son Lesley was born.  42 years later Lesley died intestate.  In other words, he didn't have a will.
  
  Under California probate law because Lesley didn't have a will, spouse, registered domestic partner, or children, his parents inherit.  Each parent gets half the probate estate. 
  
  Laura petitioned the probate court to prevent Clifford from receiving any inheritance.  She alleged Clifford hadn't seen their son since their divorce and owed back child support.  She felt it would inequitable for Clifford to receive any of their son's money based on his conduct and inattention.
  
  The appellate court followed the law by holding both parents inherit equally.  It may seem unfair on these facts but the law is the law.  The lesson to take from this case: if a person dies without a will then the rules of intestate succession will apply. - 7 - 10

• Michael Jackson's estate will pay for his lavish funeral
  Sep 13, 2009

  The executors of Michael Jackson's estate sought probate court approval to pay the extraordinary expenses for his funeral.  Though the amount sought would be enormous for most families, given the size of Jackson's estate it is a relatively small expense.  The probate court judge approved the expense. - 8 - 10

• Riverside County probate courts ending cross-filing
  Jun 08, 2009

  Riverside County's probate courts are ending their cross-filing program on July 1, 2009.  The end of this program effects all courts in the county.  This is a big step backward for making the court's user friendly.
  
  The cross-filing program allowed attorney's and unrepresented parties to file pleadings in any court in the county.  No matter where the pleadings were filed they were then directed to the correct courthouse and the department that had the case.  This program made it convenient, for example, for an executor living in Riverside to have his Riverside based attorney file a probate petition in Riverside for the Palm Springs probate court.  With the close of this program, that same attorney will have to either mail the pleading to the Palm Springs probate court or pay his or her attorney service an additional fee to drive it out to the Palm  Springs probate court for filing.
  
  No doubt the end of the cross-filing program will increase the cost of cases for many people. - 9 - 10

• San Bernardino probate lawyer releases free California probate book and DVD
  Apr 02, 2009

  San Bernardino probate lawyer releases free California probate book and DVD.  San Bernardino probate lawyer Scott Grossman has released a book and DVD on California probate and trust administration. His book, The Insider’s Guide to California Probate and Trust Administration as well as the DVD Probating a Will or Administering a Trust After the Death of a Loved One are available to anyone seeking a probate lawyer or with questions about California probate and trust administration including  executors, administrators and beneficiaries of California probate estates as well as trustees and beneficiaries of California trusts.  The book and DVD can be ordered by calling (866)540-0000 or by clicking here.

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