Orlando Estate & Elder Law

Slayer and Mack Estate Settle

A settlement has been reached in the estate of Sheila von-Wiese Mack, a wealthy Chicago woman who was the victim of a gruesome murder in 2014.

Sheila von-Wiese Mack created a relatively simple estate plan. She created a trust whose sole beneficiary was her daughter Heather Mack. Heather was to receive small annual payments until she reached the age of 30, at which time she was to receive the remainder of $1.6 million. However, Heather could not wait for the inheritance. While on vacation in Indonesia, she and her boyfriend killed Sheila.

The case became famous as Sheila's body was stuffed into a suitcase. Heather was convicted and sentenced to 10 years in prison in Indonesia. She continued to garner attention, however, as she was pregnant when she went to prison.

The child, Stella, was born in prison. Heather insisted that the child remain in prison with her, which she was allowed to do, until Stella reached the age of two. Heather's fame continued, since apparently in Indonesia, prisoners have access to social media, where Heather posted pictures of herself partying in prison and even going out to restaurants. The Daily Mail reported on this in "Heather Mack settles claims for mother's estate four years after killing her with her boyfriend - and all the money left will go to her daughter Stella, 3."

The story does not end there. Heather Mack still wanted her inheritance.  However, the executor of the estate in Illinois refused to give it to her, since Illinois has a slayer statute. According to the statute, a person cannot receive an inheritance from someone they murdered. Nonetheless, Heather continued to pursue her claim and the resulting lawyer's fees have taken half of the estate's assets to defend. Heather Mack has now finally settled and agreed that all of the estate assets will go to the benefit of Stella. She might have settled for that initially!

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Daily Mail (June 22, 2018) "Heather Mack settles claims for mother's estate four years after killing her with her boyfriend - and all the money left will go to her daughter Stella, 3."

Start Here For Your Planning

When you start to think about what you want your will to say, it can be helpful to begin with a seemingly minor detail and first decide who you want as your executor.

People sometimes delay creating a will because it can seem like an overwhelming task to figure out where you want all of your property to go after you pass away. There are many things to think about. People often put it off, because they are just not certain about everything.

For this reason, it is often a good idea to start simply and first decide on an executor (personal representative, here in Florida.)  Many people think this is a minor concern.  However, it is one of the most important decisions you make when planning your estate. The executor of your estate can have a major impact on what will happen with your estate, as MarketWatch discusses in "When you write your will, don't mess this up."

The executor of an estate has many important tasks. The job requires that assets be accounted for, debts be paid and that assets then be distributed under the guidance of the probate court.

Filing tax returns with the IRS is another important task for which the executor is responsible. That can be a problem if the executor gets it wrong. The IRS will seek to collect any unpaid amount, including penalties and fees, but it may not go after the estate alone.

The IRS might seek to collect the money from the executor personally, since executors can be held personally liable. When that happens, both the estate and the executor have a big mess on their hands.

Of course, it is best to get an estate plan from an attorney who specializes in creating them. If you are not sure who to name as an executor, ask the attorney for advice.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: MarketWatch (June 13, 2018)  "When you write your will, don't mess this up."

"Friend" Jailed for Defrauding Widow

Executors and estate administrators can sometimes be tempted to use their powers to enrich themselves. They would be wise to resist the temptations.

People entrusted to administer an estate are given broad powers to complete their tasks. While they often work under the supervision of the court, it is not always easy for courts to exercise that supervision.

This is especially true when it comes to any self-dealing by an executor or other estate administrator and they are caught. Such conduct can be difficult to catch in a timely fashion.

For example, when Victor M. Dandridge III's best friend passed away in 2005, he offered to take care of the estate for the widow, Lynne Kinder. Dandridge promised her that he would invest her late husband’s assets conservatively for her.

Instead, he took millions of dollars out of the accounts and used them to invest in his own businesses that were failing.

Dandridge claims he always meant to pay her back, when his businesses got better and he had the money.

A judge sentenced Dandridge to seven years in prison, according to the Richmond Times-Dispatch in "Charlottesville businessman gets 7 years for defrauding best friend's widow out of $32 million."

The broad powers and often limited oversight estate administrators are given, makes it possible for them to take estate assets for their own use.

Since courts cannot micromanage everything, the beneficiaries of estates need to be diligent.

If they suspect something improper is happening, they should seek the assistance of independent counsel immediately.

Estate administrators should also be warned. If they give in to temptation, prison could be the ultimate result.

For more information about estate administration in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Richmond Times-Dispatch (Nov. 9, 2017) "Charlottesville businessman gets 7 years for defrauding best friend's widow out of $32 million."

Personal Representative Is Tough Gig

The duties of the executor of a will can seem overwhelming.  However, if you break things down to essentials, then you can get a better grasp of what it is that an executor needs to do.

The executor (personal representative) of a will has a lot of work to do.  Much of it needs to be done quickly. It can be an overwhelming job for people who are not prepared to do it and who have never been executors before.

However, the job can also be relatively simple, if newly appointed executors keep a few basic things in mind.

Recently, the Wills, Trusts & Estates Prof Blog offered some tips for new executors in "Top 5 Things to Remember if You're the Executor," including:

• Hire a professional estate attorney who can help you. Let the attorney worry about what needs to be done and when. The attorney can make sure you are doing what you are supposed to be doing.
• As soon as you possibly can, get a copy of the death certificate. This will allow you to make your status as executor official with the probate court.
• Make sure you are casting a wide net and getting everything that possibly needs to be included in an estate. Do not just rely on what the will says, but check around for other assets and liabilities.
• Let everyone know that you are the executor. In some states, you are legally required to tell certain people and entities. That is something that an estate attorney will help you with.
• Get assistance from tax professionals to file a final tax return.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wills, Trusts & Estates Prof Blog (July 27, 2017) "Top 5 Things to Remember if You're the Executor."

An Executor Acts for Estate and Not Beneficary

In most states, an executor is allowed to go back in time and authorize estate actions that occurred between the time of a person's death and the time the executor is appointed. A case from Florida illustrates that they do not always have to use that authority.

When a person passes away, there is a gap in time before a court officially appoints a personal representative, also known as an executor. However, there are often estate actions that take place during that time.

In many states, the personal representative can retroactively authorize those actions after his or her appointment, if doing so would be beneficial to the estate.

Wealth Management recently discussed a Florida case holding that a personal representative is not required to exercise that authority.

The article is titled "Estate Not Liable for Car Accident After Decedent's Death."

In this case, the decedent's adult daughter had lived with him. Although she had a car of her own, she often used her father's car with his permission. She was driving her deceased father's car when she got into an accident and struck another vehicle.

Subsequently, the decedent's stepson was appointed to be the personal representative of the estate.

Under Florida law, if the daughter was driving the vehicle with the permission of the owner, then the owner could be held liable for any damages, which in this case would be the estate.

Occupants of the other vehicle in the accident sued the estate. However, the personal representative of the estate declined to retroactively authorize the daughter's use of the vehicle.  Therefore, the estate would not be liable for any damages.

The case turned on whether the personal representative was required to exercise that retroactive authority. The court ultimately ruled that he was not.

Consequently, the personal representative is not required to do something that would be harmful to the estate, even if authorized to do so.

For more information about estate administration and planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wealth Management (June 23, 2017) "Estate Not Liable for Car Accident After Decedent's Death."

Blended Family Finances - Smooth or Rocky

When a parent gets remarried there is likely to be tension between the new spouse and the children from previous relationships. Much of that tension can be eased by ensuring the family finances are properly handled.

On television and in movies blended families tend to be shown in one of two extremes. They are either portrayed as naturally harmonious with everyone getting along or they are portrayed as constantly fighting with children and step-parents always at odds.

The reality is usually somewhere in between.

Blended families usually do have some tensions, but by properly managing the current and future finances much of that tension can be alleviated.

Recently, Advisor.ca offered some advice about ways to do that in “Five ways to navigate blended-family finances,” including:

• Make sure all estate planning documents are updated to reflect the circumstances of the blended family. Asset distributions may need to be modified to make sure everyone gets a fair share of a parent’s estate.
• Choose an executor (personal representative)  carefully as you will need to designate someone who has the respect and trust of both the new spouse and the previous children.
• Creating a trust and a gifting plan can be great ways to make sure adequate provision is made for everyone in the family. Trusts can be used to make sure a spouse has the necessary resources to live on and that children from a previous marriage cannot be cut off from receiving an inheritance.
• Buying life insurance can be another good idea as it can provide needed cash for expenses and help equalize inheritances when assets are difficult to divide.
• In many situations the best thing to do is to get a prenuptial agreement before getting remarried.

Whatever you do, seek the counsel of a qualified estate planning attorney.  Please schedule a consultation if I can be of assistance.

Reference: Advisor.ca (Aug. 3, 2016) “Five ways to navigate blended-family finances,”

New Firearms Rule For Estates Went Under the Radar

New rules issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives provide some clarity for executors of estates that include firearms.

Any new proposed gun control laws or regulations are almost guaranteed to set off a political controversy—or so it would seem from media reports and the most vocal partisans on both sides. However, a new rule issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives has recently gone into effect with relatively little media attention or interference from politicians.

Most of the attention that the rule, which went into effect on July 13, 2016, has received has been centered on what it means for using gun trusts as a way to transfer ownership of firearms. Less discussed is that the rule also contains provisions for administrators of estates as Forbes reports in “Gun Trust Loophole Closed, Background Checks For All.”

The new rule clarifies two major points for estate administration. The first is that an executor or personal representative of an estate that contains firearms can take possession of the weapons without it being considered a transfer. This protects the executor from liability for possession of an unregistered weapon under the National Firearms Act. The second clarification is that the estate can transfer a firearm to the beneficiary of the estate without paying the transfer tax. Transferring firearms to a non-beneficiary still requires that the tax be paid.

These clarifications make things a little easier for executors, but it is still not advisable to administer an estate that includes firearms without the assistance of an attorney. Transferring guns can still be a legal landmine of federal, state and local laws.

Personal representatives need to make sure they are doing everything correctly. Contact an estate planning attorney well-versed in “gun trusts” specifically and firearms law generally.

Reference: Forbes (July 13, 2016) “Gun Trust Loophole Closed, Background Checks For All”

Disconnect between Parents and Adult Children

A new study reveals that there is a disconnect between what parents expect financially from their adult children and what those children expect to be asked to provide and do.

Whenever there is a disagreement about estate planning or finances between parents and their adult children the first place to look for the source of the problem is a lack of communication. It is not always the cause, but more often than not a lack of communication was involved on some level.

That makes the results of a new study disturbing as it shows that parents and their adult children have different expectations of the children’s roles in the parents’ elder years.

Money reported on the study in “Here’s What Your Aging Parents Say They Want You to Do for Them.”

Some of the different expectations are:

• 90% of parents do not want their children to support them financially, but nearly a third of children expect to do so and are willing to.
• Most parents expect their children to act as their executors, but many children have no idea they are expected to fulfill that role.
• More parents expect that one of their adult children will be a caregiver for them than there are adult children who believe they will have to do so.
• Similarly, more parents think their adult children will help them handle financial decisions than there are children who think they will be asked to do so.

All of the above are potential sources of conflict between parents and adult children.

Families should talk about their expectations in the above areas before those conflicts might arise. As a Board Certified Specialist in elder law, I would be happy to help facilitate the conversation.

Reference: Money (June 28, 2016) “Here’s What Your Aging Parents Say They Want You to Do for Them.”

Personal Representative Pitfalls

The duties of the executor of an estate are well known by industry professionals, but not always well known by the laypersons who are appointed as executors. This leads to those executors making common mistakes that would be easily avoidable had they sought professional advice.

It is common for people to name a close relative or friend to be their estate's executor (personal representative). Most people do it without thinking about it too much; it is just the way things are done.

However, when that friend or relative performs his or her duties avoidable mistakes are often made because they are not familiar with the process and do not seek professional advice.

The National Law Review discussed some of these mistakes in "Common Pitfalls Made by Executors of Estates," including:

• Many executors fail to get proper certification from the court before beginning their duties. A court must grant approval of the executor's assignment before the executor has legal authority to act.
• Executors often fail to notify all potential heirs to an estate and instead only notify those people mentioned in the will. This can lead to claims against the estate.
• Executors should open a bank account for the estate instead of using their own personal accounts.
• Executors often do not resist the temptation to distribute estate assets before claims against the estate are paid. This is especially troubling if assets are distributed before taxes are paid and can lead to personal liability for the executors.
• Executors are required to keep detailed and accurate records about how they handle estate assets. Many do not do so.

Bottom line: Please allow me to help you select an appropriate fiduciary and get his or her permission before making it official. Moreover, make sure the fiduciary knows how and where to get professional guidance when needed.

Reference: National Law Review (May 13, 2016) "Common Pitfalls Made by Executors of Estates"

Avoid Common Executor Mistakes

If you are named as the executor of an estate, you might feel honored by the appointment. That honor can turn to horror if you make a mistake that subjects you to personal liability.

Being the executor (personal representative) of an estate sounds a lot easier than it really is.

The executor has to figure out what the estate assets are, pay any outstanding debts and distribute the remaining assets according to the wishes of the deceased as dictated in the estate plan. While that sounds simple enough, the path to success is full of potential pitfalls.

This was the message of a recent Wall Street Journal article entitled "The Biggest Mistakes Executors Make."

The article lists the following common mistakes made by executors:

• Paying Bills Too Soon – Many executors pay bills as soon as they come in. This can be a mistake as some debts, such as to the government, should be paid before other debts to ensure that there is enough money to cover higher priority debts.
• Investing Estate Assets – Some executors think they can invest assets to increase the value of the estate. While that is good in theory if the investments increase in value, the executor can be held personally liable if they do not.
• Mishandling Real Estate – Real Estate must be handled carefully. Houses should not be sold too soon or too late and it makes a big difference whether or not there is someone still living on the property.
• Losing Personal Property – Executors should conduct an inventory of valuable tangible assets to make sure they are properly stored and not taken away by someone else.

One way executors can avoid these mistakes is to hire an experienced estate attorney to help settle the estate. It is so important that in Florida, a personal representative must have legal counsel.  If you have been named personal representative, or are considering accepting the role, I would be happy to assist you.

Reference: Wall Street Journal (Jan. 31, 2016) "The Biggest Mistakes Executors Make"