California Estate Planning Lawyer Blog

A California Appeals Court says that it cannot order a trustee to pay restitution to a victim of a violent crime that was committed by a beneficiary of the trust—if a trust’s terms give the trustee discretion over whether to pay the trustee and the trustee hasn’t made any payments.

Division One was affirming an earlier ruling by a Los Angeles Superior Court judge, who said that he didn’t have the authority to order the trustee to use trust funds to pay Richard Young’s restitution.

Richard Young sustained injuries in 1997 after being shot by his brother Steve at his mother’s house in Woodland Hills. Steve was convicted of attempted murder and sentenced to life in prison plus 13 years. Richard then sued his brother for his injuries, obtaining a $1.275 million default judgment.

Lucille Young, their mother, had amended her testamentary trust to name Kathy Jayne McCoy as her successor trustee. She also asked that the trust be held for Steve Young for the rest of his life. The remaining assets would go to the Christian Science Foundation after his passing. Mrs. Young passed way in 2005.

Continue reading "California Court Says Crime Victim Is Not Allowed To Receive Restitution From Attacker’s Trust" »

A woman who was adopted by her lover says she is entitled to the family inheritance—even though she and her partner have been broken up for years. Patricia Spado and Olive Watson were together for fourteen years. As they could not marry back then because they were a same-sex couple, in 1991,Watson legally adopted Spado—even though Spado is one year older than Watson—and Spado became Watson’s legally adopted daughter. They broke up one year later.

Watson is the daughter of former IBM CEO, president, and chairman Thomas J. Watson, Jr., who passed away in 1993. Mr. Watson left two multimillion dollar trust funds to his grandchildren and now Spado, as his adopted granddaughter, wants her share. Mr. Watson was unaware of the adoption.

According to a Connecticut judge, Watson’s share is estimated in the tens of millions of dollars. Gay rights activists say that this case is the perfect example of how blocking same-sex marriage can lead to the misuse of other laws in order to allow couples to establish legal connections with one another.

The adoption was challenged by trustees of the two trusts in Maine, where the adoption took place. They said the adoption wad invalid because Spado did not live in Maine and because she and Olive Watson never meant to have a normal parent-child relationship. They won their claim, and Spado appealed the ruling.

Continue reading "Lesbian Adopted By Lover Wants Share Of Family Inheritance Belonging To Former IBM Chairman" »

In an emergency petition filed in probate court on Wednesday, the six adult children of James Brown are asking for the removal of the three men who are the appointed trustees of their father’s irrevocable trust.

Yamma N. Brown Lumar, Daryl J. Brown, Deanna J. Brown Thomas, Vanisha Brown, Terry Brown, and Larry Brown are claiming that trustees Albert Dallas, Alford Bradley, and David Cannon are not fulfilling their fiduciary duties and instead have dissipated and mismanaged their father’s assets and income. In their 33-page filing, Brown’s children requested that the three men be blocked from entering Brown’s Beech Island mansion in South Carolina. Although sheriff’s deputies arrived at the estate, they did not arrest the men, who are legally in charge of the Godfather of Soul’s assets.

The three trustees are disputing the accusations. Dallas is questioning the children’s motives, saying, "These are the same children who sued their own father." In 2002, Yamma Lumar and Deanna Thomas had sued Brown for songwriting royalties and credits for “Get Up Offa That Thing.” The case was settled, although the terms remained private.

The household and personal effects of Brown are being equally divided among the six adult children. His seventh and youngest child, James Brown Jr., age five, was left out of his father's will. James Brown Jr.’s mother, Tomi Rae Hynie, claims she was legally married to Brown at the time of his death, and she plans to sue for half of his estate for herself and their son.

Most of Brown’s estate, however, which includes his mansion in South Carolina and his music rights, are in an irrevocable trust.

Continue reading "Adult Children Of Deceased Singer James Brown Want Trustees Of Father’s Irrevocable Trust Removed" »

The lawyer for Tomi Rae Hynie, the woman who says she is James Brown’s fourth wife, says she will contest the deceased singer's will and go to court to prove that she was legally married to him when he died, thereby entitled to half his estate under probate laws. Hynie also wants her five-year-old son with Brown, James Brown Jr. to inherit his 1/7th of her 50 percent. The young boy was left out of his father’s will, which Brown signed 10 months before his youngest son was born.

According to Brown’s attorneys, Hynie married Brown, but their marriage was not legal because she was still married to someone else at that time. Hynie annulled her previous marriage, but Brown’s attorneys say the two were never legally married.

James Brown’s coffin remains at his Beech Island home until family members can decide where to bury him. Most of the deceased singers assets are in an irrevocable trust that is separate from his will. Hynie and their son are not named as beneficiaries of his trust either. The trust leaves money to fund the education of his grandchildren and to help needy children. The Irrevocable Trust Agreement of James Brown was established in 2006.

An irrevocable trust cannot be changed or modified by the grantor. By setting up this type of trust, the grantor removes him or her from having rights over any assets placed in this trust. Only a trust’s beneficiary can authorize any changes that can be made to an irrevocable trust.

Continue reading "Woman Who Claims She Is James Brown’s Fourth Wife To Contest Will" »

Solano County’s Financial Abuse Specialist Team helps senior citizens avoid trust scams, especially “trust mills” that claim to be offering revocable trust plans when they are really selling insurance and unnecessary annuities.

The California Advocates for Nursing Home Reform says that with trust mills, the elderly seldom benefit financially and can actually lose a substantial amount of their resources and access to remaining funds when purchasing annuities from such companies.

When wishing to set up a trust, there are a number of recommendations for the elderly that Iowa Senator Chuck Grassley, former Chairman of the Senate Special Committee On Aging suggests, including:

• Choose a financial planning advisor carefully.

• Ask first for a written list of credentials.

• Call references.

• Talk to several experienced estate planning attorneys licensed in your state about the anticipated cost of drafting a will, living trust, or other estate planning documents. Ask, too, about how much probate costs and how long it takes.

Continue reading "To Set Up Living Trusts In Solano, California, A Specialty Team Helps Senior Citizens Avoid Trust Scams" »

The relatives and close friends of Carmel Bosco contested her living trust after she died at the age of 97 and left all her assets (a $448,000 estate) to James Foley and his girlfriend, Anna Erman. Bosco apparently changed the terms of her living trust three days before her death, removing the names of these relatives and friends as beneficiaries and replacing them with Foley and Erman instead. Foley and Erman had taken care of Bosco after she was diagnosed with lung cancer.

Friends and relatives who had been named as beneficiaries in the initial trust claimed that Foley and Erman “unduly influenced the older women and as “care custodians” under California law, they are subject to a higher scrutiny in terms of being able to inherit anything. Foley and Erman said that they were not care custodians but were close, old friends of Bosco who decided to take care of her. They argued that non-paid, helping friends are not paid caregivers and should not be disqualified from inheriting from a trust. Foley and Erman gave no reason for why they took Bosco to an estate planning attorney to change the terms of her trust just three days before she died.

A trial court ruled in the couple’s favor, but an appeals court reversed the decisio. The California Supreme Court agreed with the appeals court.

Under California probate code 21350, a number of categories of people are not allowed to inherit from someone’s will:

Continue reading "Relatives And Friends of California Woman Contest Living Trust And Win" »

A pastor who was head of a nondenominational Christian church in Hickman, California is being accused of murdering a farmer after being given control of the man’s trust. Being placed in charged of someone's trust is considered an fidicuary responsibility and therefore an estate planning matter.

Pastor Howard Douglas Porter is being charged with murder and embezzlement, after Frank Craig, 85, was crippled and then killed in two car accidents. Porter was driving the car both times.

Craig had a 4-million dollar trust fund that he placed Porter in charge of. The farmer believed that the pastor could help him build an agricultural center. Craig’s family has accused Porter of making friends with the farmer so that he could take control of Craig’s trust. Family members also believe that Craig persuaded Porter to remove his two sisters as beneficiaries and replacing them with Craig's church.

Investigators believe that Porter first tried to kill Craig in 2002, Porter he struck an oak tree after driving his truck off the road. Craig was crippled in this first accident.

Continue reading "Pastor Named As Trustee Of Farmer’s Multi-million Dollar Trust Fund Is Accused Of Murder In California" »

Kathlyn Kerr, one of the Mary Kay’s granddaughters, is suing her uncle Richard Rogers and Bank of America for breach of fiduciary duty while managing two of her grandmother’s trusts. She is also asking she be replaced as trustees. The trusts had been set up by Mary Kay for her only daughter Marylyn and her five children. Kerr wants a disinterested corporate trustee to replace Bank of America and Rogers. (Trusts, trustees, and fidicuciary duties are all estate-planning issues and often need the involvement of an estate planning attorney.)

She claims that her uncle engaged in self-dealing, imprudent management, failure to diversify the trust’s assets, and other misdeeds. Both Bank of America and Rogers have denied any wrongdoing. Rogers, Mary Kay’s son, had co-founded Mary Kay Inc. with his mother in 1963.

Kerr and her family live off some $350,000 a year that they receive from these trusts. According to her lawsuit, however, the total values of her shares from three trusts should exceed $100 million. The third trust, a testamentary trust also set up by Mary Kay, has assets that have not been distributed to its beneficiaries.

A Trustee’s Responsibilities to a trust include:
· Holding the trust property.
· Investing the assets.
· Distributing the trust’s income and/or principal to beneficiaries.
· Making tax decisions concerning the trust.
· Keeping records of all trust transactions.

Continue reading "Grandaughter of Mary Kay Seeks To Have Trustees Removed From Cosmetic Mogul’s Trusts" »

A former high school business teacher who was born in 1882, retired from teaching in 1952, and died in 1968, has left $710K to his beloved high school in New York. William H. Higbie’s wishes were carried out through his wife Cecile's 1990 will (she died in 1991). Her will set up a provision establishing a charitable remainder trust. A portion of this trust was endowed to Huntington High School and will be open to high school seniors who wish to become business teachers. It turns out that Higbie, who never made more than $5800 a year from teaching, was a very smart investor. By the end, his estate had amassed several million dollars.

The bequest came with strict terms and conditions, including:

* “The principal of the said Fund shall be held and managed by the School District in perpetuity, to be invested and reinvested in any kind of property, real and personal, without limitation to investments authorized for trust funds and without diversification as to kind or amount.

Continue reading "Through Their Charitable Remainder Trust, A Former Teacher And His Wife Endow High School A $710K Scholarship Fund " »

The California Attorney General Bill Lockyear says a one-year investigation of the Paul Getty Trust in Los Angeles confirms that funds were inappropriately used. John Van de Kamp, a Los Angeles district attorney and an a former state attorney general, has been appointed as the independent monitor who will oversee the charitable trust for one year. One of his responsibilities will be to monitor the bi-annual reports that the trust is now required to give to the attorney general’s office.

Reports of inappropriate conduct included the use of $21,500 in charitable funds to purchase artwork for retiring trustees. Funds were also used to pay for first-class travel and expensive dinners for Barry Munitz, the Getty’s former chief executive, and his wife. No charges will be filed. The J. Paul Getty Trust is the third largest private foundation in the U.S.

In California, the Attorney General is the legal overseer of charities that do business in the state. The Attorney General can:

· Conduct investigations and bring legal actions to protect the assets of California charities and insure the assets are used for their intended charitable purposes.

· Has jurisdiction to investigate alleged mismanagement of assets belonging to nonprofit schools and hospitals.

Continue reading "California Appoints Former State Attorney General As Overseer of $9 Billion Getty Trust" »

Last week, Anchorage attorney and Security Aviation, Inc. business head Mark Avery filed a 21-page defense against a California lawsuit claiming that the other two trustees of the May Smith Trust gave their consent to his borrowing more than $50 million to finance his company’s rapid growth.

Avery, who was one of three trustees entrusted with managing widow Smith’s $150 million in assets, is being accused by the two other trustees of mishandling her trust. The two trustees filed a suit in civil court in San Francisco in July, and they are now asking Avery to produce complete financial records.

Smith, who died on July 15, was the widow of Australian tycoon Stanley Smith.

Continue reading "Security Aviation, Inc. Business Owner Mark Avery Responds To California Lawsuit Accusing Him Of Taking More Than $50 Million From Widow’s Trust Fund" »