Steven Andrew Jackson

Attorney and Councellor at Law

Estate Planning News and Articles


Whitney Houston – Estate Planning Part 2

As we discussed last time, when a well known celebrity dies, after asking “How?”, we ask, “How much did they leave and to whom?”

 Rumors are that Whitney Houston left a multimillion dollar estate to her only child, an 18 year old daughter.  This is an estate that should continue to grow with the sale of licensed products of the famous singer and sometimes actress.

 The rumor also is that she left a Will.  Let’s hope not.  Wills must go through the cost, delay, and publicity of Probate Court.  Also, they are easier to attack and try to set aside.  We know that Whitney had an adversarial and litigious history with her volatile ex-husband, Bobby Brown.  Also, most Wills have outright distributions to the beneficiary.  Rarely, do you want to leave millions of dollars to an 18 year old girl.  Not when you can avoid the delay, cost, and publicity of Probate Court by using a full funded protective Revocable Living Trust.

 Hopefully, with such a Trust you have the assets held in a sub-Trust for the 18 year old daughter so that the assets are used for her care, but are not under her direct control.  This helps keep the youngster from losing her inheritance by squander, lawsuit, or later divorce.  It would also protect it from her wayward father.

 If Whitney Houston had good advisors, they would have directed her to an experienced Estate Planning attorney that limited their legal practice to Estate Planning.  Together they would create a custom Estate Plan that would avoid Probate costs, Estate Taxes, and protect her daughter from herself, predators, and creditors.  This could be accomplished with some work.

 We’ll soon see if she and her trusted advisors “did the work” to protect the superstar’s life earnings and her daughter.

 

 


Whitney Houston’s Estate Plan Upon Her Unexpected Death

After the sudden death of 48 year old Whitney Houston, some of the first questions asked are:  How did she die?  What about her family? 

Some questions that come to mind right after that are:  What estate did she leave behind and to whom did she leave it?  Then, the informed reader asks:  Will her Estate be “clobbered” by Taxes and Probate costs?  Did she use a Living Trust, Will, Life Insurance Trust, or even do Estate Tax Planning?   

We know she and her advisors were aware of a need for Estate Planning as she had been involved in an eight year lawsuit brought by a woman who was 40 years younger than her father, who married him before he died.  Her father had done poor Estate Planning which did contribute to that lawsuit.  You would hope she had learned from that lesson. 

There were rumors that she was strapped financially even though she had just done a movie.  Also, record and licensing sales soared after Michael Jackson died and are likely to do the same here.  That could add millions to her Estate.  She leaves one adult daughter as an heir. 

Remember, Estate Taxes are voluntary.  They can be planned around so that none or little are paid.  The same is true with Probate costs. 

We are yet to hear the terms of her Estate Plan, but are likely to soon.  We’ll see if her Estate is “clobbered” by paying large amounts of Estate Taxes and Probate costs. 

What are the lessons learned Estate Planning wise?   

1.  You never know when you will be “called home.”   

2.  Make sure you have a well qualified Estate Planning Attorney do the necessary planning to take care of you upon mental disability, protect yourself and your loved ones, and avoid Estate Taxes and Probate costs.   

3.  Keep that Estate Plan current as three things are always changing:  the law, your relationships, and what you own. 

Posted on: February 14th, 2012 by steve | Tags: , , , ,
Posted in Estate Planning, Estate Taxes

 


Register Now: Five Common Estate Planning Mistakes, 1 Hour CE Workshop

Please join us the morning of Leap Day, February 29, 2012, for an informative and fun one hour of Continuing Education.  We’ll help you better help your clients and gather prospects as we go through the Five Common Estate Planning Mistakes.  We’ll be in and out in an hour and get you on your way with helpful information so that you can better serve your clients and prospects.  Things we’ll learn about will include:

            1.   Why a will is NOT an Estate Plan.

            2.   Why your legal documents probably won’t work out of state.

            3.   Planning for the possibility of rising estate taxes.

            4.   How you can still easily end up in Probate Court even if you have a Trust.

            5.   Why there is NO LOVE in Probate Court.

            6.   How to protect yourselves and your loved ones in the event of a lawsuit or divorce.

            7.   Other current and relevant topics.

            Please register by downloading this registration form then fax the completed form to 828-254-6599 together with a check in the amount of $15.00 for this fun, valuable, and important workshop.  My assistant, Patti Windisch, will call you to confirm your attendance, or feel free to call me at 828-252-7300.  I look forward to seeing you on Wednesday, February 29, 2012, for a quick morning class on Leap Day.

Posted on: February 6th, 2012 by steve | Tags: , ,
Posted in Continuing Education, Estate Planning

 


Protect What You Own!

Business owners and real estate investors are just some of those at risk for losing their personal assets if they are sued by a customer or tenants.  We talked some last time about owning your rental property or business in an entity.  See my blog of January 26, 2012.

 I spoke with a lady this week with multiple businesses and she did have each of them inside of separate business entities, but she still had liability in a lawsuit because she didn’t keep the entity formalities in place and had comingled her personal monies and records with those of one of her businesses.  She also did not have several layers of protection between her customers/tenants and her personal assets. 

Do you have your business or rental property in an entity?  Did you establish and keep the entity formalities in place and ongoing?  Did you consider multiple layers of different types of entities to protect your personal assets?   

Consider taking action to protect your life’s work in the event of a lawsuit.  There may not be time to recreate all that you lose. 

Posted on: January 31st, 2012 by steve | Tags: , , , ,
Posted in Estate Planning, Liability

 


Don’t Own Your Rental House in Your Name

The problem with owning your rental house or apartment or even your business property in your own name is that you could have great liability to someone if they get hurt on your property.  If a tenant in your rental house falls in the bathtub or down the stairs, you could potentially receive a disastrous Court judgment against you.  One that could be used to force you to sell your own house to pay the large Court judgment.   

Obviously, you’ll want to have insurance to protect in the event of a lawsuit, but you also don’t want to own the rental property in your own name.  It should be held by an entity, such as a Limited Liability Company (LLC) or a Corporation.  Make sure that all of the proper formalities are used to set up and maintain those business entities or they may be worthless to protect your personal assets in the event of a lawsuit.  Therefore, you want to have your rental house or your business property owned by a properly prepared and maintained entity, and then your entity should be held by your Living Trust, so that it skips Probate Court upon your mental disability or death. 

Posted on: January 26th, 2012 by steve | Tags: , ,
Posted in Estate Planning, Liability

 

Steven Andrew Jackson, Attorney and Counsellor at Law
One North Pack Square, Suite 306 | Asheville, NC 28801
(828) 252-7300 | Fax (828) 254-6599

Legal disclaimer and IRS circular 230 disclosure