James Brown’s Estate Settles For Sale Of $90 Million

Owning a lot of assets presents unique estate planning challenges, a lesson that has left many potential heirs of celebrity estates with more questions than answers in recent years.

James Brown, like many other celebrities who have become the subject of recent study, did not complete his estate planning prior to passing away. It was estimated that his estate was worth more than $100 million, but a vague will created many different problems. After a very expensive 15 year legal battle, the surviving heirs sold the value of the estate for $90 million to a company called Primary Wave Music. Multiple people, including five of James Brown’s children, have been fighting in probate court to get control of the estate over the 15 year period. Before any money can be paid out of the estate, all lawsuits must be settled and decided between former and current executors of the estate.

From Whitney Houston to Prince and Michael Jackson and Luther Van Ross, many celebrities with substantial net worth have failed to incorporate even the most basic of estate planning strategies that would have made things easier for their heirs.

Even if you have a smaller estate, you can help prevent delays in the transition of your assets to your heirs and reduce the possibility of estate planning conflict. The best way to do this is to work directly with an estate planning lawyer for the drafting of your own documents.

If you want to avoid problematic situations, schedule a consultation with an experienced and knowledgeable estate planning attorney in VA to discuss your next steps.

 

What Are the Real Stakes Of Passing Away Without A Will?

The chances that you may pass away without having a will in place are extremely high. Although more people have reported awareness around estate planning as a result of the pandemic, plenty of people still have not taken the right action step to protect their interests in moving forward with estate planning.

You may be putting off estate planning for any number of reasons, but this can have significant consequences for your family. The stakes can be very high because you may relinquish control of your final wishes to other people who you do not trust. Every state has laws that automatically designate your heirs. These are known as intestate succession laws.

While the laws may have different applications based on the locality in question, they pass the authority for decision-making over your assets to the state. This means that any specific wishes you may have will not be followed. This can include bequests that you intended to make to a certain member of your family, or may have made verbal commitments about. Your loved ones may also be more likely to argue with one another and experience additional conflict because you failed to carry out estate planning. Another common issue associated with not having a will is that your loved ones are unable to find or understand all of your assets.

If you worked for yourself, it can be difficult for them to file your final income tax return. If they do not know where to locate deeds and other important documents, it may be difficult for them to know what to do with this material and whether or not it belongs in probate. In all of these circumstances, you’re passing off the responsibility for important estate planning decisions to other people. If you wish to have some level of control over the future of your estate, you need to consult with a dedicated and experienced lawyer in Virginia Beach.

 

 

Study Shows that Some of America’s Wealthiest People Are Ready to Transfer Their Assets

The tax overhaul from 2017 has prompted many people to rethink their overall estate and tax strategies. The coronavirus pandemic has also made it easier for some of America’s wealthiest families to pass on assets to their grandchildren and children tax free. Volatile markets and plunging interest rates have created a unique opportunity just keeping plenty of financial advisors and estate planners busy.

Some of the ways that wealthy families are taking advantage of this current market is to loan assets or cash to other family members. This means that heirs are eligible to borrow up to millions of dollars and then reinvest that money in profit for many upsides. Many beneficiaries today would be eligible to lock in extremely low rates for years or even decades.

Other estate planning strategies, such as those that relay on loans to trusts are also extremely popular. The advantage of these techniques is that they don’t eat into the gift tax exemption for 2020. Many wealthy families are scheduling consultations with their estate planning lawyers to discuss grantor retained annuity trusts which enables beneficiaries to profit from future investment gains with minimal or no risk of losing money.

Our office is here to help- are you concerned with the most effective strategies to pass on your wealth to the next generation? We can advise you about next steps so you know what to expect. Contact our Virginia Beach office today.

 

 

Should You Give All of Your Assets to Your Adult Child?

Deciding whether or not to gift something over the course of your life or to pass it on once you are no longer around is an important decision, especially with regard to the federal gift tax. Every person can gift up to $15000 per year free of gift tax. This means that you do not have to file a gift tax return and that no taxes have to be paid on that amount.

Very few Americans will have to worry about the estate tax given the current exemption amount. But passing everything on to one child can be an extreme choice and could have risks that you might not know about.

First of all, this means that one child will own everything, and this was passed on while you were still alive. You as an individual or as a couple could become financially dependent on them for everything that your current income stream does not cover.

If your loved one receives all of your assets but changes their mind about taking care of you, there is nothing you can do about it. Furthermore, if your child goes bankrupt, divorces or dies, the money could also be lost. Consider any potential and capital gains tax implications in making any transfers and decide with the assistance of an experienced and trusted lawyer the most appropriate course of action.

With all that should be considered in passing on assets, turning to a trusted Virginia Beach estate planning law firm helps you pin down all the details and leave behind a thought-out plan for your loved ones.

 

Is It Possible You’ve Forgotten Assets in Your Estate Plan?

The number and type of assets that people own today is constantly evolving, which presents significant challenges for people who don’t look at their estate planning that often. Thankfully, an estate planning attorney can help to review your checklist of an inventory of items that go inside your estate. There are some assets that are left outside of your probated estate but should still be updated on a regular basis to reflect your individual needs.

These include retirement accounts, payable-on-death bank accounts, and life insurance policies that name a beneficiary who is eligible to take over if something were to happen to you. Everything that you own must be incorporated in your estate plan along with a provision for its distribution. In addition to this basic guideline for estate planning, you should think about what-if provisions too. Which means that you have thought about what happens if a named beneficiary cannot inherit as you intended for him or her to do so.

Although one option for minimizing the chances of missing something inside your will is to update it whenever you acquire something new. This can be a challenge to keep up with and oversights can still happen, which is why your estate planning attorney might recommend a residuary clause. This ensures that any assets that are not specifically named in the will are passed on to the beneficiaries of your choice.

If you have property that is not included in the will and skip out on the residuary clause, your loved ones could find themselves in the land of probate. Avoiding probate is a common goal of estate planning so talk to an attorney about how this might benefit you.

What Unique Assets Were Left Behind by Famous People in U.S. History?

Ancestry.com’s U.S. probate and wills collection provides vast details about what people in the past left behind to their loved ones.

Some of the most interesting items left behind by famous people in history include:

• A snuff box left by U.S. Secretary of State, Daniel Webster, to his grandson.
• An island given by railroad businessman, George Pullman, while awarding his twin sons only a few thousand dollars a year.
• A $1 gift made to a grandchild of Paul Revere whereas everyone else received $500.

If it makes you concerned that so many intimate details of other people’s estates are available online, then you might wonder how these came to be available for public consumption to begin with. This is because the information about assets being passed down to future generations was detailed in wills and wills become a matter of public record. Even if the initial intent of establishing such a will was for these details to remain private, you need to consider using a trust as opposed to a will.

An experienced and knowledgeable estate planning attorney can help you use a trust to enable additional privacy for your estate planning. Trusts are essentially written instructions that only you and the person selected as trustee need to know about. This document does not go through probate like a will does and is much more private. You can also help to manage assets passed on to your loved ones by using a trust, which is not as easy to accomplish in a will.

What Assets Need to Be Included in My Estate Inventory?

Each person’s estate inventory will look unique, but a careful consideration of the different types of assets that should be included can make it easier for your estate executor and your loved ones when you pass away.

One of the primary reasons that people sit down to establish an estate plan is to ensure that their assets are simply transferred to the new owners that you have chosen and with minimal tax consequences. In order to establish a plan of distribution, you have to know the assets inside the estate.

This makes sure that your family members know exactly what you own so nothing falls through the cracks and so there is no additional conflict or challenges that emerge if you suddenly pass away.

Some of the most important assets to include in your estate plan include:

  • Life insurance policies, even though these will pass outside of your will and are managed through beneficiary designations.
  • Personal property like art, jewelry, furniture and books.
  • Investment accounts.
  • Vehicles
  • Real estate.
  • Ownership interests in any business.
  • Intellectual property.
  • Investment accounts.

When you list out these assets, it is valuable to know how these assets are owned and whether or not you have already designated any beneficiaries on these accounts.

As mentioned above, beneficiary designations may be handled separately from what is outlined in your will, although you should still have an idea of the beneficiaries listed on this account because these will supersede anything listed in your will.

These will matter significantly if they need to be transferred upon your incapacitation or death. Talk to a Virginia estate planning lawyer if you need more advice or help with your planning.

High Net Worth Families More Comfortable Revealing Information About Their Money

A recent study conducted by Wilmington Trust identified that individuals with high net worth who are older today are more comfortable sharing the intentions of their estate with the beneficiaries. The study included nearly 60 families with at least $20 million in assets but nearly three quarters of the study participants had at least $50 million in assets.ThinkstockPhotos-462163435
According to the results of that project, 48% of the individuals who currently hold wealth shared financial details with their heirs while only 33% of those same individuals got such information from their own benefactors. Part of this sharing of information may have to do with the fact that there’s a legacy benefit of protecting a family’s wealth.
The survey confirmed that wealth holders had a desire to protect the family’s assets for multiple future generations. 30% of those individuals who did not share information with those who would inherit the funds were concerned about demotivating their inheritors. If you have questions about the estate planning process, a lawyer can help you.
Have you made the decision not to share information about your estate plans with your loved ones? If so, this might have been the right decision at the time, but there are benefits to revisiting this concept with the help of the right estate planning lawyer. You may wish to empower your attorney by sharing these details and by appointing a knowledgeable executor to help manage your estate after you pass away.
Talk to your Virginia estate planning attorney about all your concerns regarding your future plans and your legacy.
 

Tips for Choosing an Executor

When approaching the estate planning process, your executor is the individual who has the legal responsibility to ensure that all of your estate planning intentions and plans are carried out to pay out any debts, bills and taxes, and to ensure that your assets are transferred properly. When identifying the right person to choose as an executor, you want to look for someone who is competent and trustworthy to carry through your wishes.
ThinkstockPhotos-99780257This person should also be aware of your intentions to name them as an executor so that they can accept. People often default to choosing a person in their family as their executor. However, it is important for that individual to understand all of their responsibility associated with this role as well as what will happen if this person were to suddenly pass away before you.
Trust and bank companies may also allow you to use them as your executor and attorneys can also serve in this role. Selecting someone who is geographically close to where you live may be beneficial. It is very important to determine the right person to serve as your executor.
If you’re not sure where to start, schedule a meeting with a Virginia Beach estate planning lawyer to get your questions answered.
 

More Americans Are Passing Away with Debt Than Ever

A recent study of 220 million consumers in Experian’s File One database, indicated that up to 73% of consumers are passing away with debt in high numbers. For those individuals who do not have a home loan, the average debt was $12,875. However, consumers with a mortgage carried approximately $61,554 in debt.
You may assume that debts are no longer your issue if you pass away, but that’s not true if there are assets inside your estate that may cover a portion or all of these debts. If you have communicated to your loved ones that you intend to give them particular assets, but those are seized and sold as part of your estate plan, you may wish to discuss your options for changing your estate plan with an experienced lawyer.
thumb_alternateThe types of debts most common included credit card balances, mortgage debt, auto loans, personal loans and student loans. Debt belongs to the deceased individual when he or she passes away. That means that creditors can pursue asset sold in the estate as part of their payment.
If there aren’t enough assets to satisfy debts, then creditors may lose out on all or some of their payments. But in the event that there are assets in the estate to pay out creditors, then your beneficiaries may actually receive nothing. This is why it may be important to discuss other opportunities such as a life insurance policy or advanced planning strategies with your knowledgeable estate planning attorney.