Did Actress Anne Heche have a Will?

Homer Laffoon, actress Anne Heche’s 20-year-old son, is asking that he be awarded control of his mother’s assets. His mother died last month after a car crash at age 53 and did not have a will, according to a copy of the petition obtained by CNN.

“Filed concurrently with this petition is a Petition for Appointment of Guardian ad Litem for the minor,” the docs read, “which specifically requests that the guardian ad litem be granted the authority to waive bond on behalf of the minor.”

The petition names Laffoon and Heche’s 13-year-old son, Atlas Tupper as heirs.

“The Estate consists of two (2) intestate heirs—Homer Heche Laffoon and Atlas Heche Tupper,” the petition states “Homer Heche Laffoon is an adult and the proposed Administrator. Atlas Heche Tupper is a minor.”

CNN’s recent article entitled “Anne Heche’s son petitions to assume control of her estate” reports that an October 11 hearing is scheduled to evaluate this request. Also, it’s been noted that the estimated worth of Anne Heche’s estate will need to undergo forensic accounting. That’s because it’s not known how much the star was worth upon her death.

While there’s no official will documenting Heche’s wishes for her estate, Homer’s stated that his mom’s final resting place will be at the Hollywood Forever cemetery. She also designated her organs for donation at her passing before her remains were cremated.

In the aftermath of the grief, these unexpected events will provide some legal hurdles.

Heche’s car crashed into a Los Angeles home and erupted into flames on August 5. She experienced a “severe anoxic brain injury,” depriving her brain of oxygen, among other critical injuries, her family and friends said in a statement. Anne passed away a few days later after being taken off life support.

“My brother Atlas and I lost our Mom. After six days of almost unbelievable emotional swings, I am left with a deep, wordless sadness,” Lafoon said in statement to CNN on Aug. 14. “Hopefully my mom is free from pain and beginning to explore what I like to imagine as her eternal freedom.”

Reference: CNN (Sep. 1, 2022) “Anne Heche’s son petitions to assume control of her estate”

Why Is a Will So Important?

A 2020 Gallup poll found that less than half of Americans have a will or have made plans regarding how they would like their money and estate handled in the case of their death. The poll also showed that Americans ages 65 and up are the most likely to have one.

Yahoo News’ recent article entitled “How To Write A Will: The Importance Of A Will And Living Will” says that no matter your age, it’s important to have a will to be in control of what happens with your own assets. A will is a legal document that establishes a person’s wishes regarding the distribution of their assets — money, real estate, etc. — and the care of any minor children.

Without this type of legal document, the state law may control who gets your “probate” assets and when. Having one can save an enormous amount of time and money in estate administration and the process of having a guardian appointed for your minor children, if needed.

There’s a big difference between a will and a living will. A living will is a document that lets you state in advance how you want to be treated under certain medical situations, if you’re unable to make those decisions for yourself at a later time.

These differ by state law. However, they generally cover end-of-life decision-making and treatment options. General medical decisions unrelated to end of life care are typically covered in a health care power of attorney. Some states combine these two documents into one directive.

Unlike a living will, which specifically provides instructions for medical care during your lifetime, it lets you to decide in advance who you want to receive your assets upon your death, and who you want to be in charge of handling the administration of your estate. If you have minor children, it also allows you to nominate a guardian for them.

When creating a will, think about the “what,” the “who” and the “how.” To do so, ask yourself the following questions:

  • What assets do you have?
  • To whom do you want to leave them?
  • Who do you want to be in charge of making sure that happens?
  • Who do you want to be responsible for your minor children?
  • How do you want the assets transferred?

Reference: Yahoo News (Aug. 17, 2022) “How To Write A Will: The Importance Of A Will And Living Will”

Who Is the Best Person for Executor?

Several critical estate planning documents give another person—known as an agent or personal representative—the legal right to act on another person’s behalf. They include wills, trusts, powers of attorney and advance health care directives, as described in a recent article titled “The nomination of trustees, executors and agents” from Lake County Record-Bee.

Your will is only activated after you die. The will and executor then have to be approved by the court. Many people think being named as an executor confers instant authority, but this is not true. Only when the will has been deemed valid by the court, does the executor have the power to act on behalf of the decedent.

After death, the court is petitioned for a court order appointing the executor and then letters testamentary are signed by the appointed executor. An executor then becomes active as an officer of the court with a fiduciary duty to act as personal representative of the decedent’s estate.

If the named person declines to serve, the will should have a secondary person named as executor, who can then request the appointment be validated by the court. Others can petition the court to be appointed. However, it is best to name two people of your choice in your will.

A trust is a separate legal entity with a trustee who is in charge of the trust and its assets. If a revocable will is created, the trustee is usually the same person who has the trust created, also known as the grantor. For an irrevocable trust, the trustee is someone other than the grantor. The appointment does not become official until the appointment is accepted, usually through signing a document or by the successor trustee taking action on behalf of the trust.

Just as an executor might not accept their role, a trustee can decide not to accept the nomination. However, once they do, they have a fiduciary duty to put the well-being of the trust first and manage it properly. You can’t accept the role and then walk away without serious consequences.

Powers of attorney are used while a person is living. The power of attorney’s effective date depends upon what kind of POA it is. A durable power of attorney is effective the moment it is signed. A springing POA sets forth terms upon which the POA becomes active, usually incapacity. The challenge with a Springing POA is that approval by the court may be required, usually with proof from a treating physician concerning the person’s condition.

Similarly, the health care power of attorney appoints a person who acts on behalf of another as their agent for health issues. They can decline the position. However, once they agree to take on the position, they are responsible for their actions.

If the POAs decline to serve and there is no secondary person named, or if all named POAs decline to serve, the family will need to apply for a conservatorship (also known as guardianship). This is a lengthy and expensive process requiring a thorough investigation of the situation and the person who needs representation. It can be contested if the person does not want to give up their independence, or by family members who feel it is not needed.

These are commonly used terms in estate planning. However, they are not always understood clearly. Your estate planning attorney will be able to address specific responsibilities and requirements, since every state has laws and appointments vary by state.

Reference: Lake Country Record-Bee (July 30, 2022) “The nomination of trustees, executors and agents”

What’s the Latest with the Queen of Soul’s Estate?

Clearing the Queen of Soul’s tax debts could clear the way for her four sons to finally take over her post-death affairs and fully benefit from revenues flowing into her estate — which could be millions of dollars.

The Detroit Free Press reports in its recent article entitled “Aretha Franklin estate says $7.8 million IRS bill is paid; could spell windfall for sons” reports that Franklin’s tax burden had been an immovable hurdle as her heirs sorted out other estate matters — sometimes combatively — in Oakland County Probate Court following her 2018 death.

The IRS debt prevented the sons from receiving money, even while the late star’s music and movie projects generated big revenue in her name. The remaining tax liability was paid off in June with delivery of a cashier’s check to the IRS.

The IRS said that the singer’s estate had nearly $8 million in unpaid taxes, penalties and interest that had piled up during the previous seven years. The estate at last struck a deal with the IRS in April 2021 with an accelerated payoff schedule that also set up limited but regular payments to Franklin’s sons.

The IRS deal earmarked 45% of incoming Aretha Franklin revenue to pay down the standing tax balance. Another 40% was directed to an escrow account to handle taxes on newly generated income.

With the tax debt now purportedly off its back, the estate contends that most of the incoming cash should get distributed equally among the four sons each month. From that point, income tax obligations would be on each individual. Oakland County (MI) Probate Judge Jennifer Callaghan would have to approve the request.

In the meantime, there’s still the issue of multiple wills that were apparently signed by Franklin. That includes three handwritten documents discovered in her home in 2019.

A fourth will draft suddenly was discovered last year — a typed document prepared by a Troy law firm in 2017 but left unsigned by the star.

The documents contain conflicting instructions about Franklin’s wishes for her estate, including which heirs were to get what, and their emergence exacerbated tensions among sons Clarence, Edward, Teddy and Kecalf.

A trial to clear up the situation was planned for 2020 but was delayed due to the pandemic.

Reference: Detroit Free Press (July 11, 2022) “Aretha Franklin estate says $7.8 million IRS bill is paid; could spell windfall for sons”

What Happens If Couple Divorce and Own Business?

High-profile divorce cases like the Bezos or the Gates should cause many people to consider how their business and marital assets are tied together. You need to have plans in place from the beginning. No one thinks their partnership will end. However, it’s necessary to have a plan in place, just in case.

The Dallas Business Journal’s recent article entitled “Does your business need a prenup?” explains that there are three typical outcomes when married couples working as business partners decide to end their relationship:

  • One individual buys out the other partner’s shares and continues running the business;
  • The partners sell the business and divide the proceeds; or
  • The couple continues working as partners after the divorce.

Safeguards can be put in place on the first day of the relationship to protect your personal and business assets in the event of a divorce. A way to do this is through a prenuptial agreement, which states what will happen if a split happens. A pre-nup should:

  • Establish the value of the business as of the date of marriage or the date the agreement is signed;
  • Detail a course of action with the appreciation or depreciation of the business from the date of the marriage;
  • Say how business value will be measured; and
  • Specify the allocation of business interests to be awarded to each spouse in the event of a divorce.

In addition to a prenuptial agreement, any privately held company should have a shareholder agreement (or “operating agreement” for non-corporations). The shareholder agreement is one of the most important documents owners of a closely held business will ever sign.

It controls the transfer of ownership when certain events occur, like divorce and states the following:

  • Which party will buy out the other’s shares of the company if a buyout occurs; or
  • If either party has the right to sell, how the ownership interest will be valued and the terms and conditions concerning the acquisition.

Because there are some tax implications involved in a buyout, it’s best to bring in experienced estate planning attorney for this process. In addition, life events like divorce or changes in a business partnership are an appropriate time to update your will, estate plans and any necessary insurance policies.

Reference: Dallas Business Journal (Aug. 1, 2022) “Does your business need a prenup?”

What’s the Most Important Step in Farm Succession?

There are countless horror stories about grandchildren in tears, as they watch the family farmland auctioned off because their grandparents had to liquidate assets to satisfy the taxes.  Farm Succession planning is crucial.

Another tale is siblings who were once in business together and now don’t talk to each other after one felt slighted because they didn’t receive the family’s antique tractor.

Ag Web’s recent article entitled “Who Gets What? Take This Important Estate Planning Step” says that no matter where you are in the process, you can always take another step.

First, decide what you’re going to do with your assets. Each farmer operating today needs to be considering what happens, if he or she passes away tonight. Think about what would happen to your spouse or your children, and who will manage the operation.

The asset part is important because you can assign heirs to each or a plan to sell them. From a management perspective, farmers should then reflect on the wishes of your potential heirs.

Children who grew up on the farm will no longer have an interest in it. That’s because they’re successful in business in the city or they just don’t have an interest or the management ability to continue the operation.

After a farmer takes an honest assessment, he or she can look at several options, such as renting out the farmland or enlisting the service of a farmland management company.

Just remember to work out that first decision: What happens to the farm if I’m dead?

Once you work with an experienced estate planning attorney to create this basic framework for your Farm Succession planning, make a habit of reviewing it regularly.

You should, at a minimum, review the plan every two to three years and make changes based on tax or circumstance changes.

Reference: Ag Web (August 1, 2022) “Who Gets What? Take This Important Estate Planning Step”

Who will Receive Naomi Judd’s Estate?

Country music legend Naomi Judd, who died in April, named her husband Larry Strickland as executor of her estate. She was married to Strickland for 33 years. According to court documents, he’ll have “full authority and discretion” over her estate and won’t need to have the “approval of any court” or permission from any beneficiary.

The Los Angeles Times’ recent article entitled “Naomi Judd reportedly left daughters Wynonna and Ashley out of her final will” says that the 76-year-old Judd prepared the will on Nov. 20, 2017.

The will also provides that Strickland is entitled to receive compensation for his executor duties and that he would be reimbursed for legal fees, disbursements and other “reasonable expenses” in the administration of Judd’s estate. Judd‘s brother-in-law, Reginald Strickland, and Wiatr & Associates President Daniel Kris Wiatr will serve as the estate’s co-executors.

Reports say that Wynonna isn’t happy with her mother’s will and “believes she was a major force behind her mother’s success.”

Naomi died from suicide on April 30a day before she and her daughter Wynonna, known as “The Judds,” were to be inducted into the Country Music Hall of Fame.

The daughters teamed up in their grief to tearfully accept the Hall of Fame honor for their late mother.

Wynonna later decided to tour despite her mother’s death. She enlisted some major stars to join her on the road.

In May, Ashley revealed that her mother had used a firearm and said she found her mother’s body when she was visiting her mom’s Tennessee home.

“Our mother couldn’t hang on to be recognized by her peers. That is the level of catastrophe of what was going on inside of her,” she told ABC’s Diane Sawyer. “Because the barrier between the regard in which they held her couldn’t penetrate into her heart and the lie the disease told her was so convincing.”

The Judds were known for songs including “Why Not Me,” “Love Can Build a Bridge” and “Mama He’s Crazy.”

Reference: Los Angeles Times (Aug. 1, 2022) “Naomi Judd reportedly left daughters Wynonna and Ashley out of her final will”

Do Young Adults Need a Will?

Everyone, age 18 and older, needs at least some basic estate planning documents. That’s true even if you own very little. You still need an advance health care directive and a power of attorney. These estate planning documents designate agents to make decisions for you, in the event you become incapacitated.

The Los Angeles Daily News’ recent article entitled “Estate planning, often overwhelming, starts with the basics” reminds us that incapacity doesn’t just happen to the elderly. It can happen from an accident, a health crisis, or an injury. To have these documents in place, you just need to state the person you want to make decisions for you and generally what those decisions should be.

An experienced estate planning attorney will help you draft your will by using a questionnaire you complete before your initial meeting. This helps you to organize and list the information required. It also helps the attorney spot issues, such as taxes, blended families and special needs. You will list your assets — real property, business entities, bank accounts, investment accounts, retirement accounts, stocks, bonds, cars, life insurance and anything else you may own. The estimated or actual value of each item should also be included. If you have life insurance or retirement plans, attach a copy of the beneficiary designation form.

An experienced estate planning attorney will discuss your financial and family situation and offer options for a plan that will fit your needs.

The attorney may have many different solutions for the issues that concern you and those you may not have considered. These might include a child with poor money habits, a blended family where you need to balance the needs of a surviving spouse with the expectations of the children from a prior marriage, a pet needing ongoing care, or your thoughts about who to choose as your trustee or power of attorney.

There are many possible solutions, and you aren’t required to know them before you move ahead with your estate planning.

If you are an adult, you know generally what you own, your name and address and the names of your spouse and children or any other beneficiaries you’d like to include in your plan. So, you’re ready to move ahead with your estate planning documents.

The key is to do this now and not procrastinate.

Reference: Los Angeles Daily News (July 24, 2022) “Estate planning, often overwhelming, starts with the basics”

Did COVID Spark More Estate Planning?

Those who have had a serious bout with the coronavirus (COVID-19) are 66% more likely to have created a will than those who did not get as sick, according to Caring.com’s 2022 Wills and Estate Planning Study.

COVID has accounted for more than one million deaths in the United States thus far.

MSN’s recent article entitled “More Young Adults Are Making This Surprising and Smart Money Move” says that it may be even more surprising that the number of adults in the 18-to-34 age range who now have estate planning documents has jumped 50% in the pandemic era.

Nonetheless, many people of all ages continue to put off the process of creating this key estate planning document.

Two-thirds of Americans still don’t have a will.

Caring.com found that among those who don’t have a will, a third say they think they don’t have enough wealth to warrant one.

However, even if you don’t have an expensive home, a large IRA and other valuable assets to pass on, you can still benefit from creating a will.

There’s no minimum level of wealth needed to have an estate plan, and every adult should have a basic plan in place to care for their own needs and the needs of their family.

The Caring.com survey of more than 2,600 adults found that—you guessed it—good old-fashioned procrastination is the primary reason people don’t create a will. About 40% admit to this factor.

Not surprisingly, the survey also found that those with higher incomes are more likely to put off getting a will due to procrastination.

Those people with lower incomes don’t prioritize a will because they don’t feel they have the assets to justify this important legal document.

Reference: MSN (July 24, 2022) “More Young Adults Are Making This Surprising and Smart Money Move”

What If Your Spouse Refuses Estate Planning?

Blended families are quite common in the U.S.

A married couple may have a small child—but one spouse may also have children from a first marriage. The spouse may be concerned about assets and protecting those older children in estate planning.

A spouse on a second or third marriage may insist on a prenup with the other spouse relinquishing any rights. As compensation, many spouses will purchase life insurance with the other spouse as beneficiary. However, what if this plan never comes to fruition?

Nj.com’s recent article entitled “My husband won’t make an estate plan. What can I do?” says that many spouses want to provide for children from a first marriage. However, second marriages can get messy when it comes to estate plans.

Even if the spouse doesn’t help, there are steps a recently married individual can take. One thing is having estate documents prepared by an experienced wills, trusts and estate attorney.

Another is to secure life insurance policies that designate the child or children of the second marriage as beneficiary and naming their mother or father as trustee.

A life insurance policy is a non-probate asset; as such, a beneficiary can receive the proceeds from the policy more quickly than if they had to wait for your estate to be settled through a probate court.

A person in this situation should speak with an experienced estate planning attorney about a will and the life insurance.

A will provides direction for what happens after a person dies and can distribute his or her property to their loved ones, name an executor to handle their affairs, name a guardian for any minor children and specifically state a person’s wishes for family and friends.

It may also be beneficial to look into a trust or other estate planning tools with an attorney to distribute the assets. Exploring these options early in the child’s life in the above example may make a parent feel more prepared for the future, and more secure with the circumstances of the second marriage.

If the spouse tells the other that he or she has an appointment with an estate planning attorney, they just might decide to attend.

Reference: nj.com (March 10, 2022) “My husband won’t make an estate plan. What can I do?”