Articles Posted in Estate Planning

Known and beloved as “Mr. Cub,” Ernie Banks began his career in baseball earning only seven dollars per day in the Negro Leagues, before coming to the Chicago Cubs and becoming one of the team’s all-time favorite players. After baseball, Ernie Banks continued a career in business and philanthropy, Mr. Banks earned the Congressional Medal of Honor in 2013. He passed away on January 23, 2015 from a heart condition, but the death certificate also listed dementia as a “significant condition contributing” to his death. This statement has become incredibly important because his caretaker is now claiming to be his sole heir.

Ernie Banks’ Estate Plan

Three months before he passed away, Mr. Banks signed a new will and estate planning documents that included a power of attorney, healthcare directive, will, and trust. The new estate plan gave control of his entire estate to his caretaker and talent agent, Regina Rice. The will and trust also excluded his family members and named her as the sole beneficiary. In fact, the new documents expressly stated that nothing should go to his estranged wife or three children from a prior marriage. The new plan gives Ms. Rice all assets from Mr. Banks’ estate, and it also allows her to profit off of his name, image, and likeness.

On January 17, President Obama proposed a new plan for the tax code that could have implications on estate planning. He proposed a revamp of the tax code that would include bumping up capital gains and dividend rates to 28%, treating bequests like realization events such as making beneficiaries pay tax on assets that have appreciated in value, and blocking contributions and accruals in qualified plans and IRAs once the account reaches $3.4 million. These ideas are forcing people to rethink their current estate plan and look ahead to the future.

Response to the Plan

The response from advisors, Republicans, and tax experts was not favorable to this new plan. It has also been noted that the chances of this proposal going through a Republican-dominated Congress are low However, legislators are telling people to pay attention because it gives an insight to where legislation may go in the future. Experts have noted that this type of legislation has been proposed before, and can give people planning their estates now a potential look into the future.

An attorney claims that he has evidence that a panel of judge in the Panama Supreme Court were bribed into stripping him of control over a $150 million estate. The lawyer, Richard Lehman, says that he has an affidavit that proves that the foreign court illegally removed him from his position as executor of the estate of his client, Wilson Lucom. According to Mr. Lehman, Mr. Lucom’s final wishes for his estate were that the estate be overseen by Mr. Lehman and that a portion of the estate be donated to “needy Panamanian children.” However, Mr. Lucom’s took over the estate after her legal team bribed several judges.

Facts of the Case

This lawsuit stretches back to 2006, when Mr. Lucom passed away. A wealthy American expatriate living in Panama, he appointed both his widow Hilda Lucom and Mr. Lehman as the executors of his estate in his original will. However, he made modifications to the estate plan prior to his death that contributed to the legal battle over his estate as well as over its real estate holdings on the Pacific coast of Panama.

In 1974, the Individual Retirement Account (IRA) was born, and since its inception more than 43 million Americans have created at least one IRA account for their retirement savings. Over the years the IRA has transformed greatly and has the potential to continue to evolve over the coming years. In fact, the IRA today bears almost no resemblance to the retirement vehicle that was created forty years ago.

Brief History of the IRA

When the IRA was first introduced in 1974, it was only available to employees who were not already sponsored by employer plans. The maximum contribution per year was only $1,500, and 401(k) plans did not yet exist. In 1981, the IRA saw a massive increase in the number of accounts when a new tax law let anyone under the age of 70.5 years old contribute as well as increased the annual maximum amount of contribution to $2,000.

The sales of firearms in the United States is rising, and for people who want to pass on their collection of guns to the next generation, estate planning has been particularly difficult. However, with the advent of the “gun trust” there is now a way to ensure that your collection is passed safely and to the correct beneficiaries. The gun trust has become the go-to vehicle for bequeathing firearms in an estate for owners who do not wish to have their collections sold after their death.

Increased Demand for Gun Trusts

The FBI’s National Instant Criminal Background Check System ran 21.1 million background checks for firearm purchases in 2013, a significant increase from the 19.6 million checks performed in 2012. The number of background checks also jumped in December of last year, with the FBI’s system running more than 2.3 million checks in that month alone, compared to only two million checks the December prior. This system runs a background check every time that a person walks into a licensed gun dealer and wishes to purchase a firearm.