New York Estate Planning Lawyer Blog

The Georgia Supreme Court recently ruled on what was the proper interpretation of a will that appeared to leave an interest in real property to his wife, in fee simple, but also let the same property to his son and his son’s children. The issue was between the executors of the estate and the grandchildren as to whether they inherited an interest in the land or if the wife’s estate held the title to the land in fee simple.

Facts of the Case

Hodge King and his wife, Hattie, jointly owned four separate tracts of land together as tenants in common during his lifetime. When Mr. King died in 1999, he stated in his will that “I give, devise, and bequeath to my wife, Hattie F. King, all of my property, both real and personal, wherever located and whenever acquired, either before or after the making of this my Will, hers in Fee Simple.”

Most people do not believe that they can leave a legacy for their heirs because the word is usually tied to large, multi-million dollar estates. However, there are ways to leave a legacy that does not involve complicated estate planning tools or extreme amounts of wealth. Two simple moves can be made with the money that you have now that can help you leave a legacy for your family, friends, or charitable organizations.

Moving Money to a Roth IRA

If you have assets in a traditional IRA that you do not think that you will deplete in your lifetime, consider converting those funds to a Roth IRA. High income earners are often prevented from contributing to a Roth IRA, but anyone can convert a traditional IRA to a Roth. After the conversion of the traditional to the Roth, when the Roth IRA is held for five and a half years and you have reached the age of 59 ½ years old all of the distributions are tax-free.

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.