Planned Giving Marketing Impacts Legal Ruling

Wednesday, August 5th, 2009

There was an opinion issued by U.S. Court of Appeals involving Robert Dillie in a case that charged him with operating a fraudulent foundation from 1996 to 2001.  The foundation was actually in a ponzi scheme issuing $55 million gift annuities to more than 400 donors - these were sold through investment advisers receiving commissions on each sale.  The opinion was issued this past June and M. Dillie is now serving a prison sentence of 121 months.  However, the legal fallout from the operation lives on.

Due to return of commissions ruled by the lower court, investment advisors sued the receiver who’s assigned to recover the remaining funds and repay defrauded donors.  However, Federal Court of Appeals concurred with the rulings of the lower court and rejected the arguments of the investment advisers’ lawyer.

Truly, the underlying facts of this case were unique.  And the ruling’s significance is how the gift annuities were viewed by the Court in light of marketing techniques used.  When the court looked at various promotional advertisements used, it was clear that the gift annuities were actually investment contracts.  Therefore, charities should be careful in marketing their gift annuities or other life income vehicles.  Make sure to emphasize that these are gifts first and foremost.

Tags: commissions, court, donors, foundation, gift annuities, lawyer, Planned Giving, Robert Dillie, U.S. Court of Appeals
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Estate of McNair in Limbo

Monday, July 20th, 2009

Former quarterback of Tennessee Titans, Steve McNair, left no will.  As a result, one of his son’s family (the one born before his marriage), was laying claim to their inheritance.  This could set up one lengthy legal battle.

David Callahan, Nashville attorney of Mechelle McNair (Steve’s wife), said that she’s determining the net worth of her husband.  A probate court judge in Davidson County granted her 60 days to complete this process as a response to her emergency petition.

The probate court filing states that the heirs are Mechelle McNair and her sons Trenton, 6, and Tyler, 11.  However, she can’t confirm whether the other two older sons of her husband are actually his.  Her husband died suddenly as he was shot on July 4 by a woman he was dating.

Steve McNair’s oldest son is Steven McNair Jr., Oak Grove High’s senior star wide receiver while his second son is Steven O’Brian McNair, 15-year old.  Cotina Feazell, the mother of Steven McNair Jr. did not find any records that the quarterback completed any estate planning or set up trust funds.

Attorneys say that even if the other women were not married to McNair, his sons are still eligible to the inheritance under state law.  There might be certain blood tests or other issues but all they need to do is hire an attorney to make a claim.

Tags: attorney, court, David Callahan, Estate Planning, inheritance, law, legal, probate, son, Steve McNair, Tennessee Titans, trust funds, will
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Common Answers about Trusts and Wills

Thursday, July 2nd, 2009

There are no additional filings or fees in setting up a trust.  However, it’s likely more complicated and more expensive compared to drawing up a will.  The costs vary widely - it would depend on the complexity and size of the estate - attorneys could charge several thousands of dollars on these documents.  But for most basic estates, wills could cost about $500 each, according to Steve Akers, a managing director of a New York wealth-management firm named Bessemer Trust Co.

Anybody having possession of your will (usually your attorney) is obligated to file it in the courts upon your death.  Therefore, Akers stressed that you should leave copies of your trusts with your designated trustees or attorneys.

A common reason for choosing to set up a trust instead of a will is to avoid the court proceedings.  These wills need to be filed in probate court in order to be executed, which means that they become public documents.  Costs could be between 1-3% and administrative court fees would come out of the estate.  Use of wills are more common in states that have simpler court procedures and hearings are quick (sometimes even for 15 minutes).  While with trust, your assets will be simply transferred to designated trustees (or trustee) upon your death.

Tags: attorney, attorneys, Bessemer Trust Co., court, Steve Akers, trust, trustee, trusteees, will, Wills
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Jackson’s Mother Asked to Administer His Estate

Sunday, June 28th, 2009

The mother of Michael Jackson, Katherine Jackson, asked a Superior Court judge in Los Angeles to name her as administrator of the estate belonging to his late son so that she can ensure that the beneficiaries would be his two children.

According to the court filing, Jackson’s parents think that he died without any valid will.  Joe Jackson, the late singer’s father, supported Katherine in her petition.  The court documents also state that Katherine Jackson “has intentions to marshal the assets of the descendant just for the three children’s exclusive use, after expenses of administration and payment of debts.”

Mitchell Beckloff, Superior Court Judge, granted the request for Katherine to assume temporary guardianship of the children; however, didn’t immediately accept her request to be the estate administrator.

So far, a will made by Michael Jackson to find out his wishes for the care of his estate and children has not surfaced yet.  Although Jackson’s funeral is still now in its planning stages, Joe, his father, said that his late son would not want to be buried at the Neverland Ranch, which is the sprawling playground that the entertainer built in Santa Barbara County’s rolling hills.

Tags: court, estate, estate administrator, Joe Jackson, judge, Katherine Jackson, Los Angeles, Michael Jackson, Neverland Ranch, Santa Barbara, singer, Superior Court
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Legal Terms in a Will

Saturday, June 20th, 2009

You’ve probably watched this scene in a movie - a family sits in an office while an attorney reads a last will and testament from their wealthy grandfather.  And then it reads “Being of sound body and mind, I, Reginald V. Gotrocks, hereby bequeath all my fortune and possessions to one person who’s been there for me rain or shine, day in or day out…..my mailman Jim.”

The next thing that would happen is that the family may vow to contest the crazy will of the old man.  Unfortunately, if the will has been properly drafted, it’s one of the iron-clad documents in law.

The truth is that everyone of legal age should have a will.  If not, the court will never know how you intend to dispose your possessions - be it land, money, computer, or your pet cat.

It’s also important to know the legal terms in a will:

• Testator - person who owns the will
• Executor - person who’ll carry it out
• Beneficiary - recipient of the  assets
• Probate - court that will prove the will’s validity
• Bequest - gift of personal property coming from testator to beneficiary
• Codicil - written amendment to the will
• Intestate - a person have died without a will (opposite of “testate”)
• Trust - entity holding assets until later, which also allows the beneficiary to bypass probate.
• .

Tags: attorney, beneficiary, bequest, codicil, court, executor, intestate, probate, testator, trust, will, will and testament
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Effects and Eligibility for Expungement

Sunday, May 10th, 2009

Expungement is a process ordered by the court wherein a legal record such as an arrest or criminal conviction is erased. The availability and procedure of expungement varies according to the county or state where the arrest or the conviction occurred.

In order to qualify, there must be certain standards met to be eligible for expungement. These factors include:

• -Amount of time elapsed since the arrest/conviction.
• -Events in the criminal record of the applicant (including arrests/convictions in other states)
• -The nature and severity of the arrests/convictions (i.e. a sex offense conviction may be denied for expungement)
• -The nature and severity of other arrests/convictions in the criminal record of the applicant

When a person’s criminal record is expunged, he or she may not mention the arrest or conviction record. For example, this record does not need to be disclosed in renting an apartment or applying for a job. Also, no record will appear if the potential employer conducts a background search.

An expunged record is actually not completely erased. However, it cannot be accessed easily. The limited accessibility is only open to the criminal courts, law enforcements, and other government agencies. This is sometimes referred as “under seal” criminal records.

Tags: arrest, court, Criminal, criminal conviction, expungement, legal record
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Final Divorce Order Changes

Saturday, May 9th, 2009

A divorce decree is often referred as “final decree” or “final order” in a divorce case. However, many aspects of this decree can still be changed under certain circumstances. Generally, if there are significant changes in the circumstances of either party, it can warrant a change in visitation order or custody. However, some states place restrictions on the reasons or number of times that any party can request a change.

For example, the non-custodial parent may petition the court to temporarily suspend or at least reduce the child support obligation if he or she loses his job. At the same token, if there is an increase in his or her income, the other party may petition for an increase in child support.

Also, if the existing visitation schedule is already unworkable (i.e. the parent moves or the child becomes involved in a new activity), then it can be modified too. The court retains jurisdiction for cases with minor children involved. It has the power to enforce visitation, custody, and child support orders through contempt actions.

To learn more about divorce modifications, ask a divorce attorney in your area. An attorney can explain to you how divorce laws may affect the process of modifying your final divorce decree.

Tags: attorney, child support, court, custody, Divorce, divorce attorney, visitation schedule
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Wage Distribution in Divorce Proceedings

Friday, May 8th, 2009

During divorce proceedings, the court will value a person’s exceptional wage earning abilities and distribute a part of it to the spouse. This comprehensive decision was written by a Supreme Court judge in New York. He concluded that the personal good will inherent in one’s career should be considered as a marital asset and must be subject to court evaluation and subsequent distribution upon divorce.

In fact, there have been many divorce decisions that recognized this – licenses and degrees were considered as valuable property rights. But it’s clear that whether corporate executives earned licenses or degrees during their careers, their career expertise would still be subject to equitable distribution.

For example, a corporate executive (even with an undergraduate degree) earns $35,000 in a year. But because of the experience and special skills acquired during marriage, the salary increased to $350,000 a year. In this case, the courts will determine the average pay of college graduates in the area (say $85,000), deduct it to the present value sum ($350,000 less $85,000 = $265,000), multiply the years before reaching retirement (say 15 years), and then discount the result to the present value sum.

So for our example, $265,000 multiplied by 15 years is $3,975,000 in enhanced earnings. The discount amount may only be $1,800,000 depending on the discount rate employed.

Most people are truly shocked by this. Nevertheless, this type of computation is often played in divorce courts. But since this evaluation process is more of an art than an exact science, selecting an experienced divorce lawyer will surely soften the blow.

Tags: court, Divorce, Divorce Lawyer, earnings, lawyer, New York
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Accident Injuries: Decide whether to Go to Court or Not

Wednesday, April 15th, 2009

Some claims for accident injuries will be settled before going to court. However, a few will definitely proceed to litigation and trial.

Unless you are advised by your attorney, settling out of court will always be in your best interest. Therefore, it’s important to make sure that you are represented well.

It would be helpful to research your attorney’s past experience before hiring them. Have they taken many injury claims to trial? Or maybe their track record is filled with settling cases before going to court? Some accident attorneys have reputations of being good and tough – this might deter your opponents from the desire to take the case to trial.

Of course, litigation can be tiring and stressful. Aside from the costs associated with it, the preparation for the case will never be taken lightly. Then during the hearing, you will be required to face the lawyer of your opponent who has questions specifically designed to confuse you or trigger some negative emotions.

It’s true that there are some cases where you really need to go to trial in order to get your claim. An example of this includes a dispute on whether the injuries you sustained were really caused by the accident. So if you can find a good accident attorney, he or she has the responsibility to prepare you and inform you of the scenarios you’ll expect in court hearings.

Tags: accident attorneys, court, dispute, injuries, litigation, trial
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