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The judge believes the resolution is in the teen’s best interests. Kira told the judge that she did not object to the settlement but needed more information than what has been given her by her guardian ad litem, Michael Augustine, who was appointed last September to advocate for the teen’s interests. Augustine denied the claim that he did not keep Kira informed about the settlement. He said he was pleased that the settlement was approved. He filed the will contest petition on behalf of the teenager and argued that when Kirk’s will was created, its beneficiaries “knew or should have known (Kirk Kerkorian’s) health was failing, that he was dependent on the persons surrounding him for his daily living needs and that he was highly susceptible to the influence of the persons on whom he depended.” Augustine’s petition also claimed that the will’s beneficiaries took advantage of the trust and confidence that Kirk placed in them and “suggested and dictated the contents of the document, arranged for the document to be drafted, arranged for execution of the document and caused (Kirk Kerkorian) to execute the document.” Kirk Kerkorian was obligated to provide $7 million to a trust created on Kira’s behalf based on his marital settlement agreement with ex-wife Lisa, the teen’s mother. Under the will contest settlement, another $1.5 million will be given to the teen’s trust. Lisa Bonder Kerkorian was married to Kirk for less than a month in 1999, and he denied during his lifetime that he was Kira’s father. However, he grew fond of the girl and decided to provide for her nonetheless. Kerkorian died last June at age 98. He developed numerous properties on the Las Vegas Strip, such as the MGM and MGM Grand. Kerkorian also invested in and operated businesses in a number of industries—including airlines, automakers, Chrysler Corp., General Motors and film studios. He bought MGM Studios three times, bought United Artists and tried to acquire Columbia Pictures. Reference: myLAnews.com (March 1, 2016) “I am my rich father’s child! Teen gets $8.5M as bio daughter of Kirk Kerkorian” #WillChanges #HoustonWills #Probate #ProbateCourt #Inheritance #LeagueCityProbateAttorney #HoustonEstatePlanningLawyer #Trusts

That group has proposed legislative changes to the current law in order to simplify the forms and add penalties for financial institutions that ignore them. The Empire State News article “NY Power of Attorney Form ‘Full of Traps for the Unwary’” explains that some people have a modified power of attorney form that is longer than their wills. The current remedy in such instances is to compel banks and other financial institutions to accept a valid power of attorney form by instituting a burdensome and expensive special proceeding in court. However, even if a judge orders the financial institution to recognize a valid power of attorney, the judge still can’t impose sanctions against the financial institution. The New York State Bar Association calls the remedy totally inadequate. New York’s law was changed in 2008 and 2010 to require banks and other institutions to recognize legally valid power of attorney forms. Nonetheless, many banks and other financial institutions still require that their own forms be used. There are no sanctions against banks for failing to honor a valid Statutory Power of Attorney. Reference: Empire State News (March 1, 2016) “NY Power of Attorney Form ‘Full of Traps for the Unwary’” #ClearLakeEstatePlanning #PowerofAttorney #Wills

“I don’t know what will happen to the things I have in the Cloud or Facebook when I die,” said Paul Savides from Eau Claire. He believes it’s very important that the state create a way of protecting the privacy rights of those people who have those things online after they die. Our digital footprint is fairly permanent, but we are not. “If there’s a way we can modernize our laws, streamline this, and create a system, we can try and take some of that stress off of people as they’re navigating already emotional territory,” said Rep. Melissa Sargent (D) Madison. Representative Sargent said she wants to bring Wisconsin law up to date with technology by getting a bi-partisan bill through the State Legislature that is aimed at protecting individuals’ online assets after they die. The definition of “property,” of course, continues to evolve over time in this more technological and more digital world in which we live. The bill tries to remedy that issue. The bill allows users to provide their account information to someone designated by them for management after they pass away. For example, Facebook has designed a legacy setting that permits users to do this. However, in the absence of those types of settings, a will or power of attorney could be used. Digital assets frequently have great value, so it’s critical for individuals to make certain that their property is protected. Wisconsin’s legislators feel that we should at least have that fiduciary standard in place to protect that data, so it’s not just released to someone only because they’re a family member. This bill, they believe, would be a solid first step in tackling the modern day issue of digital property. The bill is heading for approval in the State Senate. Reference: WEAU.com (February 25, 2016) “Law aims to protect internet users’ digital property after death” #AssetProtection #HoustonEstatePlanning #DigitalAssets #PowerofAttorney #Wills

What should you change? Forbes says, in two words, almost everything. In “5 Things You Need To Do After Getting A Divorce,” Forbes says that once your divorce is final—with your divorce decree approved and the judgment rendered by the family court judge—you should immediately review and revise, if necessary, the following legal and estate planning documents: Trusts Powers of Attorney (property, healthcare, HIPAA, etc.) Will (if you have one) Life insurance policies Retirement accounts For example, if your ex-spouse remains the beneficiary of your life insurance policy and you pass away, the proceeds will go to your ex-spouse instead of your children. That might not be what you want now. If you don’t have a valid will in place, since after a divorce an ex-spouse is no longer legally considered to be an heir, he or she will not be in line to receive anything from your estate. With your retirement accounts, after a divorce, you may revise your will to say that your 401(k) goes to your children, but if your wife remains the beneficiary of the plan, then she will get those funds. The retirement plan designations take priority over your will. The same is true for life insurance: proceeds will go to the named beneficiaries of those policies, rather than those named in a will. Remember that when you make changes to estate planning documents, be sure those changes are in sync with the terms of your divorce decree. If the divorce decree states that your ex-spouse is to remain the beneficiary of a life insurance policy, you don’t want to change that beneficiary designation on the policy. Reference: Forbes (February 26, 2016) “5 Things You Need To Do After Getting A Divorce” #AssetProtection #RetirementAccounts #HoustonEstatePlanning #Probate #ProbateCourt #PowersofAttorney #Divorce #Wills #HoustonEstatePlanningLawyer #LifeInsurance #Trusts #HIPAAPermission #HoustonTrustsandEstates

Tax: When you fund an irrevocable trust, know that your tax situation can change immediately. Based upon your state of origin, you may be liable for additional state taxes. There may also be capital-gains taxes. The trust doesn’t receive a step-up in basis, just a transfer of your cost basis. Rate of return: If the U.S. has a target inflation of 2%-3%, and you’re getting 0.5% in money-market investments, you’re moving backward. But if you place assets in a trust, you have the ability to build a good offense against inflation. Inflation continues to grab dollars out of our pockets every year. Usability: Sometime called liquidity, this refers to your trustee’s ability to access these funds. This should be a priority, and you should understand your investment timeline and plan for when funds might or will be needed. Safety: Don’t forget the Age 100 Rule. Take your age and subtract it from 100. This should be the starting point in determining how much of your portfolio and funds should be at risk vs. being guaranteed. Transfers: Talk to an Elder Law attorney to learn about Medicaid guidelines that are applicable for your state. In addition, if you or a loved one is a veteran or the widow of a veteran, have the Elder Law attorney explain VA benefits. One last note: don’t place your faith in an Internet search for answers to your unique situation. This will only result in confusion and possibly leave you without the benefits you need. Talk with a qualified attorney for peace of mind and accurate advice. Reference: MarketWatch (February 25, 2016) “What you should know before placing assets in a trust” #HoustonAssetProtection #IRAs #IrrevocableTrust #PlanningfortheFuture #VABenefits #TaxPlanning #ElderLawAttorney #LeagueCityEstatePlanningLawyer

According to the Palm Beach (FL) Post article “Florida guardianship reform passes; seniors protest at courthouse,” the Legislature’s action follows newspaper reports of professional guardians who deplete the savings of incapacitated seniors through their own fees. In cases of guardianships, seniors determined by the court to be incapacitated will frequently forfeit all of their legal rights to make their own decisions. When there is no relative available, or when family members can’t agree on how to proceed, a judge has the authority to appoint a professional guardian to make decisions on finances, medical care and housing for the senior. The legislation creates an Office of Public and Professional Guardians and, for the first time, creates standard practices and rules for professional guardians. It also gives the new office strong enforcement power, which includes the ability to revoke a guardian’s registration. Right now in Florida, anyone can become a professional guardian with these powers over a senior by merely submitting to a credit and criminal background check and 40 hours of training. There are many more of these professional guardians in the state. There were only 108 in 2003, but that number grew to 457 last year, according to the Department of Elder Affairs. The bill, which has passed the Senate, received support from advocate group Americans Against Abusive Probate Guardianship, as well as Governor Rick Scott and the Florida State Guardianship Association. Legislators said that with so many retirees coming to Florida, they need to feel safe that their estates aren’t going to dissolve at the hands of unscrupulous guardians and their representatives. Reference: Palm Beach (FL) Post (February 24, 2016) “Florida guardianship reform passes; seniors protest at courthouse” #ElderAbuse #LeagueCityGuardianship

An updated will. A properly drafted will can play a crucial part in minimizing your estate’s exposure to taxes. If you should die without a legally proper will, the probate court may wind up making decisions about your estate, regardless of your best intentions. Review your will regularly. Owned property. If you are married and own property you intend to gift, ask your estate planning attorney to check state laws to see how they may impact your estate. There are states where property owned prior to marriage is treated as separate property belonging to just one spouse, and there are community property states in which all property acquired prior to or during marriage is deemed to be owned by both spouses. Review your property and make sure it is set up the way you want. Beneficiary statements. Review your beneficiary designations, and make sure they’re as you want them. This includes retirement plans (401(k)s, 403(b)s, etc.), IRAs, bank accounts, and insurance policies. Remember that your named beneficiaries take preference over those named in a will, so it’s important to regularly review beneficiaries, particularly after major life changes like marriage or the birth of children or grandchildren. Health care directive and living will. It’s important to be prepared for the unexpected with your health, whether an accident, illness, or other reason. Draft a health care directive that provides guidance on the extent of the medical treatment you want to receive based on your condition. Power of attorney. You should give an individual the authority to make decisions on your behalf in the event you are unable to do so. A “durable” power of attorney will act as your agent, making medical and/or financial decisions for you when needed. Digital accounts. Make certain that loved ones know how to find all required information, including passwords, to access your online accounts—your financial accounts, social media accounts and household accounts like your cable and electric. Consult with an experienced estate planning attorney for help in creating this documentation as part of your estate plan. He or she can review your estate goals to make certain your legacy intentions are consistent with your overall financial strategy. Reference: Sonoma County Gazette (March 1, 2016) “6 Basic Steps to Legacy Planning” #HealthCareDirective #AssetProtection #IRAs #ProbateAttorney #401k #HoustonWills #ProbateCourt #ClearLakeProbate #CommunityProperty #Inheritance #LivingWill #DigitalAccounts #Beneficiaries #HoustonTrusts #PowerofAttorney #LeagueCityEstatePlanningLawyer

Why recharacterize? The top reason people do this is because the account has declined in value. A recharacterization cancels out the conversion, and the conversion tax is eliminated. At tax time, some folks get a case of buyer’s remorse and don’t want to pay the tax on the conversion. That’s OK. Since a recharacterization reverses a Roth conversion, the funds must go directly from the Roth IRA to the traditional IRA. You can’t withdraw the converted funds from the Roth IRA and then deposit them back into the traditional IRA. You can do either a full or partial recharacterization. If you want to file by this year’s April 18, 2016, deadline, you can do so and then recharacterize prior to October 17, 2016. In that case, you would need to file an amended return and get your tax money back with interest. Backdoor Roth IRA Conversion. This involves two separate transactions: a contribution to a nondeductible IRA and a Roth conversion. It’s known as a “backdoor” Roth conversion because it results in having the contributed funds end up in a Roth IRA, even if income was too high to make a Roth IRA contribution. That said, you should be aware of the following: The individual must have earned income, such as wages or self-employment income; You can’t be over age 70½, as traditional IRA contributions can no longer be made for the 70½ year and later years; The pro-rata rule will apply, and all of your traditional IRAs are included in the pro-rata calculation, meaning that some of the back-door Roth conversion will be taxable if there are other pre-tax funds in any IRAs; Funds that end up in the Roth IRA via a backdoor conversion are converted funds, rather than Roth IRA contributions. This is a big deal for those under age 59½—those funds must be held for five years to avoid a penalty, but if the funds went in as a Roth IRA contribution, they could be accessed immediately, both tax- and penalty-free. Speak with an experienced estate planning attorney to make sure that this is the right strategy for your situation. Reference: Investment News (February 19, 2016) “Tax-time Roth IRA strategies” #HoustonAssetProtection #IRAs #RothIRA #HoustonEstatePlanningLawyer #TaxPlanning

The article, “Dead Iowans’ digital assets focus of Senate bill,” explains that current state law doesn’t adequately address what happens to digital assets (like social media accounts, email accounts, photographs and other online assets) when a person dies, according to Senator Robert Hogg, D-Cedar Rapids. Senate File 2112, which was sent to the Iowa House, was proposed by the Iowa State Bar Association. The bill states that people could provide instructions to an online or digital provider regarding how they want their assets handled in the event of their death, or they could have these instructions in their will. If the deceased doesn’t provided instructions, however, the matter could be handled by the fiduciary of his or her estate. The bill defines an “agent” as an attorney-in-fact granted authority under a durable or nondurable power of attorney. The bill notes: “The legal duties imposed on a fiduciary charged with managing tangible property apply to the management of digital assets, including all of the following: The duty of care. The duty of loyalty. The duty of confidentiality.” Senator Hogg said that if the bill is signed into law by Governor Terry Branstad, it will be an important act of legislation concerning estate planning. Reference: The Des Moines Register (February 22, 2016) “Dead Iowans’ digital assets focus of Senate bill” #DigitalAssets #HoustonEstatePlanning #LeagueCityPowerofAttorney

But a Tennessee county judge disagreed with them and dismissed the adopted children’s lawsuit, saying they didn’t have standing to contest the 2013 will because they don’t receive anything from a previous will executed in 2012. That’s according to a report in the Chattanooga Times Free-Press entitled “Brock estate battle lives on as attorneys argue Astec founder’s will.” An old State Supreme Court decision essentially means the five adopted children have no standing to contest the second will (2013) because they don’t gain anything from the first (2012). But the children’s attorneys disagree and plan to appeal. “How do we challenge the standing if we can’t get the court to look at any wills beyond 2012?” the children’s attorney asked. Brock created numerous wills over the years that exclude the children at different times, according to the exhibits filed in court. In 1994, one of the five adopted children, Walter, was excluded, and in 1998, another son, Darryl, found himself in the same spot. Brock’s 2006 will is the same but also leaves kids Jennifer, Melissa, and Krystal $800,000 apiece. But in 2012 and 2013, they’re all excluded. The kids’ attorneys plan to appeal the ruling because the previous wills show undue influence and how the children were to receive less and less each time. The five adopted children filed this lawsuit claiming they were unaware they’d been disinherited from their father’s will until after his death. They said that their copies of the will weren’t delivered by hand but mailed, and Walter Brock’s notice never arrived. They contest the current will, disputing the authenticity of their father’s signature: the only witnesses present for the will signing were company employees or officers who had a financial interest in the company, the suit said. The lawsuit also alleges that their father’s second wife—and former secretary—joined forces with two of her children from a previous marriage (Brock’s other adopted children) and a co-executor to remove them from the 2013 will. Records show that these four other children were included in the will. The children allege in their lawsuit that this scheme was carried out when Brock lacked the requisite capacity, given his intense cancer treatments which compromised his mental and physical capacities. Reference: (Chattanooga) Times Free-Press (February 5, 2016) “Brock estate battle lives on as attorneys argue Astec founder’s will” #WillChanges #Probate #ProbateCourt #Inheritance #ClearLakeEstatePlanningLawyer #WillContest #HoustonProbateAttorney

If you have investment property, remember that it’s not easy to divide a building. Your heirs might not agree about how the property should be managed. Be realistic and ask yourself if your kids can work together to manage the real estate. You may want to leave the investment property to the one child who really can manage real estate while leaving your other heirs others assets. Another option is to provide that some of your children buy out the others at a price set by an independent appraisal. If one child isn’t ready to handle an inheritance or if one of your children is in a shaky marriage, inherited assets could be lost in a divorce or spent frivolously. In these situations, ask your estate planning attorney to create a trust to hold your assets after your death with restrictions on the trust funds. You can stipulate that some of the trust fund will be distributed when the beneficiaries reach a certain age and that more funds are to be paid out five or ten years later. This plan can work well if you believe that the trust beneficiaries will become better at handling money as they get older or will have resolved marital problems by then. If you decide to go with a trust, you may want to discuss its terms with your beneficiaries while you’re still alive, so they’ll know what to expect. If you think that might not be easy, leave a letter of instruction to be read–or a video to be shown–after your death, explaining your actions. Reference: FEDWeek (February 11, 2016) “Preparing Your Heirs for an Inheritance” #AssetProtection #ProbateAttorney #Probate #ProbateCourt #Inheritance #SugarlandTrustsandEstates #Wills #HoustonEstatePlanningLawyer #Trusts

NASDAQ.com’s recent article, “5 Smart Estate-Planning Steps to Avoid Probate,” explains that when you pass away, your possessions and property go through the probate process. This process includes the settlement and distribution of your assets in compliance with the terms of your will. Non-probate assets are those that are jointly owned by you and your spouse, like bank accounts, as well as retirement benefits and life insurance proceeds that have a beneficiary designated. All the property you own individually and want to pass on to your beneficiaries is subject to probate, which can be tedious and time-consuming. It can take as little as three months or up to three years (or longer) to resolve, depending on your state and the size of your estate. In addition, probate can be expensive. There are bond premiums and publication fees for publishing the estate appointments. If there is any fighting over your estate, then there can be litigation costs, too. The bigger the estate, the more potential for expense. Fortunately, there are some tactics to implement now to help ensure that your estate avoids the probate process. Here are some to consider: Draft a Revocable Living Trust. Creating a living trust allows your trustee to transfer your property and possessions to your family members without probate. You can facilitate timely distribution of assets and help your family save on inheritance fees. Talk to an estate planning attorney for help setting up – and “funding” – a trust. Convert Your Personal Accounts To Pay-On-Death Accounts. This is as simple as completing a form designating your beneficiary, just like on your IRA. When you die, the funds are directly transferred to your beneficiary without going through probate. Establish Joint Ownership. This property automatically passes to the surviving owner, and it’s an easy way to avoid probate. Joint ownership can be established through tenancy by the entirety (between married couples) or joint tenancy. Also, community property is a way of co-owning property if you are married or own property in some states (particularly out west). Give Away Property. Estate taxes are due only on those estates that are worth more than $5.45 million for a single person or $10.9 million for a married couple. If you have a large estate but give away enough assets ahead of time, your estate might get below that threshold and escape those taxes. If you gift property when you are alive, it does not undergo probate when you die. Use Small Estate Laws. Many states have simplified their estate-planning procedures for certain property types, and you might be able to use this to avoid a complicated probate. This is based on the size of your estate, the type of property, and state estate laws. Take the appropriate estate-planning measures for your situation now so that you can help simplify the distribution of your property for your heirs. Consult an experienced estate planning or probate attorney for advice on the best options for your specific situation. Reference: NASDAQ.com (February 10, 2016) “5 Smart Estate-Planning Steps to Avoid Probate” #AssetProtection #EstateTax #IRAs #ProbateAttorney #Probate #ProbateCourt #Inheritance #Wills #HoustonEstatePlanningLawyer #TaxPlanning #Trusts #HoustonTrustsandEstates