Posts Categorized: Estate Planning

I didn’t win the $758.7 million Powerball jackpot.

You can’t win ‘em all, right? At least the winner came from Massachusetts, so that’s something we can all share in. But somehow, I’d rather share in the winnings.

Anyway, shortly after it was announced that someone in Massachusetts hit the jackpot, I came across an article entitled “5 things the Powerball winner needs to do.” Here are the five to do’s:

• Keep the ticket close. (Makes sense to me)
• (The author says a lottery winner shouldn’t present his or her ticket to the powers that be before contacting an attorney, financial planner and accountant. Good advice.)
• Remain anonymous if possible. (Makes a lot of sense to me.)
• Choose a lump sum or annual payments. (Here the author is referring to the importance of basing this decision on the advice of professionals, such as tax advisors, attorneys, accountants, etc. Again, sound advice.)
• Take a deep breath. (The author advises not to fill your driveway with Teslas immediately but instead think about your legacy and perhaps make charitable contributions for the betterment of society. I think that’s a great idea, too.)

Unfortunately, last week’s winner didn’t get the memo. We all know who she is, where she worked, and where she lives (or maybe “lived.”) Presumably, she’s heard from quite a few dear friends and family she didn’t know existed until her name and picture appeared in the media. Did she get an email, text, tweet, voice mail or good old-fashioned letter from someone claiming to be her best friend in kindergarten—you know, the one who always happily shared her last cookie with the Powerball winner? I can’t be certain, but I suspect there were a few messages along those lines sent to the winner.

Now, I’m not saying that by failing to follow the five to do’s for Powerball winners our fellow Massachusetts resident is destined for a starring role on the show “The Lottery Ruined My Life.” She’d have to squander an awful lot of money to merit an appearance on that show.

But as an estate planning and elder law attorney, I do hope she works with qualified, ethical professionals to effectively manage and protect her windfall. In fact, a few of the tips offered in the Powerball article are equally applicable to planning for future generations and addressing the important question of whether or not they are equipped to handle sudden wealth.

To read the Powerball article I’ve been referring to in its entirety, visit https://www.cnbc.com/2017/08/24/5-things-the-powerball-winner-needs-to-do.html.

Plenty of celebrity deaths have raised important considerations about the estate planning process. At the time that he unexpectedly passed away, Alan Thicke appeared to have a fairly comprehensive estate plan in place.

He generated a trust in 1998 for the benefit of his family and executed a prenuptial agreement in 2004, when he married his wife, Tanya in 2005. The trustees of the Thicke Living Trust, his sons Brennan and Robin came forward recently, seeking direction from the court regarding Tanya’s impact. The petition argues that Tanya requested a larger portion of the estate that was allocated to her under the trust terms and  denied the validity of any prenuptial agreement.

She also suggested that she may be entitled to Marvin rights, which are typically brought up to protect an unmarried partner in palimony cases. The term Marvin rights is taken from the case involving the late actor Lee Marvin. Marvin v. Marvin. 18 Cal.3d 660 (1976). Her argument is that she sacrificed her own career to support Alan Thicke and has now been severely prejudiced in her career potential as a result.

Even though California is a “community property” state, the critical point of interest here has to do with the intersection of two different legal documents; the trust and the prenuptial agreement. The prenuptial agreement determines what of the property in the estate is considered community and this is the property that Tanya would maintain ownership rights over.

This highlights the complexity of the estate planning process and how failing to plan or not considering all the different legal documents you have previously created may intersect with your estate plan can lead to problems.

Even if you’re not a celebrity, it’s important to have the right estate planning lawyer in Massachusetts help you articulate your goals.

Link to Marvin case:

http://www.casebriefs.com/blog/law/family-law/family-law-keyed-to-weisberg/alternative-families/marvin-v-marvin/

It seems like a simple fix to find a document online and use it for distributing your estate in the future, but this could be a big mistake if the form is not correct. Unfortunately, in many such cases, no one realizes the mistakes until it’s too late.

Many people who approach the estate planning process want to get through what they need to do as quickly as possible. However, this can be a mistake if you choose to go the DIY route. Having an estate plan that is specific to your needs and appropriately prepared can make a big difference between having your assets tied up in a costly and frustrating probate proceeding and passing things on in a smart manner.

Online self-help companies have surfaced to provide estate planning to the crowd who is looking for a quick fix, however, these fill-in-the-blank documents often do not suit the individual needs of the person completing them and may not even be legally valid depending on your state’s laws.

Legal language is frequently omitted in these fill-in-the-blank forms, for example, in the event that a revocable online trust form doesn’t specify the language about where your assets would go if one of you beneficiaries passes away before you, this could generate confusion in the future. Special consideration for these plans requires that you schedule a meeting with a Massachusetts estate planning lawyer who can help you determine the most appropriate avenue for your individual strategies.