Sunday, January 15, 2017

Bad Mom

Ken Thompson was the Brooklyn District Attorney who died of cancer in October.  Two weeks prior to his death, he allegedly changed his will to omit any bequest to his mother and instead left his estate in trust for his wife and 2 young children.  

His mother is contesting the will alleging that he did not know what he was doing due to his illness.  As support for her theory, she argues that Thompson was unhappy with his marriage because of the amount of money his wife was spending.

Three quick points:

1.  It is anything but unusual for a man with young children to leave his entire estate to his wife and children.  Providing for a mother is what would be unusual.  

2.  The creation of trusts to assist his wife with financial management of the inheritance shows mental clarity not lack of mental capacity.

3.   If Thompson was unhappy with his wife’s spending, he is in the majority of husbands.

                                         License:  Fair Use/Educational Purpose
                                         Copyright Alex Rudd/NY Daily News

Tuesday, January 3, 2017

The Force Pays Off

The Walt Disney Company is reportedly set to receive $50 million due to the death of Carrier Fisher. Disney owns Star Wars and had taken out an insurance policy on Fisher in the event she was unable to complete the new three film trilogy. Filming had wrapped on Episode VIII but Episode IX, due in 2019, will need a script re-write.

Several minor points:

1. The insurance on Fisher is a form of "key man" insurance which many companies purchase on the lives of their valuable employees to protect the company in the event of the death of the employee.

2. $50 million seems excessive given the limited role that Fisher played in The Force Awakens.

3. The insurance carrier is likely wishing that it had rather insured the life of Harrison Ford, whose Han Solo died during Episode VII, and who will not appear in any more episodes.

                                          Photo Copyright:  REX/Walt Disney/Shutterstock/Robot
                                                   License:  Fair Use/Educational Purposes

Sunday, January 1, 2017

Happy New Year

Apparently I am only in the seasons' greetings business. Celebrity estate planning blogging to pick up soon. Best wishes for the new year.


Sunday, December 25, 2016

Monday, December 5, 2016

Once a Deceiver

Robert Oesterland and Sarah Pursglove made an enormous fortune in various business such as promising people credit cards, forming membership style clubs for various items such as DVDs, and selling web browser toolbars promising to remove computer viruses. When Pursglove started divorce proceedings, Oesterland swore in court that he was only worth several million dollars. Although Pursglove was unaware of their financial details, she knew they had several assets alone worth more than that, including a $30 million Toronto penthouse and a yacht that cost several million dollars annually to operate. When Pursglove started investigating their finances, she discovered they were difficult to determine because of the opacity provided by the use of myriad LLCs and trusts in tax haven destinations. The divorce is still on-going.

Several points:

1. Wealthy individuals use off-shore trusts to protect their wealth from creditors as an advanced form of asset protection planning.

2. Wealthy individuals also use off-shore trusts to hide their assets from taxation in an illegal form of tax avoidance.

3. It is no surprise that a man who made money by signing people up for memberships that continually charged their credit cards, promised credit cards to people but only gave them a list of credit card companies, and sold browser toolbars with no benefits would deceive his wife in divorce proceedings.


                                         Illustration from New York Times
                                         License:  Fair Use for Education Purposes

Friday, November 25, 2016

When Plans Work Out

The below photo is from the front page of today's Cincinnati Enquirer. Jack, in yellow, and his St. X teammates wanted to run all out for 400 yards in the Turkey Day Race so they could be in the lead and "make the paper." Somehow, that plan came to fruition. I love the smiles and the gap to the pack.