Los Angeles residents with high-value estates may be interested in the latest court filing by the executors of the Lou Reed estate. This filing outlines the value of most of Reed’s property, though some high-value assets have been left out.

On Oct. 27, 2013, former Velvet Underground singer Lou Reed passed away at age 71 from health issues related to a liver transplant. He was married to Laurie Anderson, a musician, but the two had no children. In his will, he left his estate to both his wife and his sister. In order to provide medical and other care for their mother, a separate gift of $500,000 was made to Reed’s sister.

The executors of Reed’s estate, including his former accountant and manager, have now filed papers with the court tallying up Reed’s assets. These consist of the copyrights for his songs, including cult hits such as “Walk on the Wild Side” and “Pale Blue Eyes” as well as his interests in the music publishing business. However, reports indicate that some of Reed’s property was not included in the amount. Reed owned a home in East Hampton, New York, as well as an apartment in Manhattan. The home was purchased for a reported $1.5 million just five years ago while comparable apartments have been sold for millions of dollars recently.

When making plans for high-asset estates, complex issues demand that the proper documents are drafted in order to protect those assets. An attorney with experience in estate planning may be able to help by assessing the person’s financial situation and determining the proper vehicles. They may also be useful in acting as a trustee or executor in order to help ensure that the property is distributed as desired.

Source: USA Today, “Lou Reed’s estate worth over $20M, executors say“, July 01, 2014

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Increasingly, throughout California and the rest of the country, people over the age of 65 are getting married. This can lead to complications in estate planning particularly for those who have been married before and have children from a previous relationship.

Individuals who marry later in life need to look at their wills as well as considering a prenuptial agreement. New wills must be made because a marriage cancels any existing wills. Many older individuals with children who marry want to make sure that both their spouses and children benefit from their estate. They may choose to make arrangements in their will for a trust that allows their assets to pass to a surviving spouse as long as that spouse is alive and then to their children.

If either individual has lost a spouse, that person may have inherited their estate. In such a case, there may be an unused inheritance tax allowance. This and other aspects of tax liabilities should be kept in mind to minimize those liabilities. Lifetime gifts for their children may be one way of doing this.

In addition to considering their wills and how assets will be protected and passed on to heirs, couples may wish to draw up a prenuptial agreement to protect the assets that they bring into the marriage in case of divorce. Individuals should keep in mind that a prenuptial agreement may not be legally binding, but there are ways to ensure that it has a better chance of being honored in court. For example, the agreement should be drawn up at least a month before the wedding. This helps to ensure that the individuals were not rushed or coerced. It is also important that each had access to an attorney to discuss the terms of the agreement in advance.

Source: YourMoney.com, “Estate planning tips for newlywed pensioners“, Mark Politz, June 26, 2014

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The Kasem family had a somber Father’s Day as Casey Kasem, the iconic radio personality, passed away on Sunday. He had been in hospice care since Thursday afternoon, an attorney for Kasem’s daughter, Kerri, reported. The rift between Kasem’s children and his wife, Jean had been widely reported as his health declined in 2013. Among the many legal issues that had been litigated between the parties, Kerri recently won a conservatorship that allowed her to make decisions about his medical care, since Kasem was diagnosed as suffering from a form of dementia

Kasem was best known for his weekly radio show where he highlighted the 40 most popular song in pop music for that given week. The show, “American Top 40,” began in 1970 and ran until 1988. Another version of the show came about in 1998, when Ryan Seacrest took over the show. Before “American Top 40,” Kasem was an announcer on Armed Forces Radio, and worked at radio stations in New York, California and Ohio. He had been in the radio business since 1952, and was known for his trademark sign-off “Keep your feet on the ground and keep reaching for the stars.”

News of how his estate is to be divided has not broken yet. It remains to be seen how he intended to distribute his assets. But given the disputes between his wife and children, it would not be surprising if there is more legal turmoil. Nevertheless, the story is a prime example of why it is important to have a detailed estate plan to properly set expectations in the event of one’s passing.

Source: ABC News.com “Casey Kasem dead at 82,” Lesley Messer, June 15, 2014

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Father’s Day is this coming Sunday (June 15). It is a day to celebrate the sacrifices and contributions that fathers and father figures have made on their families, especially children. On Father’s Day, much of the focus is on giving dad gifts or giving him a rest from most of his duties. The gifts typically focus on power tools, fishing tackle, baseball tickets or even ties. However, it may be difficult to shop for the dad who has everything. 

If you have this problem, you may consider the gift of an estate plan. Indeed, planning for the unexpected may be a morbid proposition, but it is something that is necessary for men who have children and assets that must be distributed in the event of his passing. Essentially, without a will, power of attorney or healthcare directive, a man may not have the ability to direct how he may be cared for in the event he became incapacitated. Also, he would not be able to divide and distribute assets according to his wishes. Instead, he would be forced to do so according to California law.

While asset division according to the law may be okay for some, for others it may not be. A detailed plan can help prevent (and resolve) disputes over property ownership and a parent’s wishes regarding care. The situation involving Casey Kasem and his children is an unfortunate example.

An estate plan may also help in avoiding high estate taxes. Estates valued at more than $5 million may be subject to federal and state estate taxes that can severely limit the value of the estate.

With that we wish all of our readers who are fathers a happy Father’s Day.

Source: Forbes.com “Eight common estate plan objectives of married couples,” Lewis Saret, May 13, 2014

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Many people may not understand the importance of a health care directive or a living will. More people may not understand the difference between the two. Essentially, a health care directive allows one make specific rules about his or her care in the event they become incapacitated, cannot speak or cannot make decisions on their own behalf. Similarly, a living will can present protocols for a person’s care in end-of-life situations.

Regardless of what you understand about health care directives and living wills, and what value they bring, the situation with legendary DJ Casey Kasem and the ongoing battle between his children and his wife should make people think twice about ignoring these documents. While we have authored a number of posts on this story, we find it prudent to provide an update.

In the latest legal battle, a Washington state judge has affirmed a California state judge’s ruling that allows Kasem’s daughter, Kerri, to see the ailing patriarch at up to one hour per day, and to have an independent medical professional evaluate him. Kasem’s wife, Jean, has consistently disallowed visits from Kasem’s children, which has led to a slew of litigation over access and choices about care.

The former DJ known for his former “Top 40” countdown show is 82 years old and is apparently suffering from dementia. Since he presumably no longer has the capacity to make medical decisions on his own, he depends on others to dictate his care.

In the meantime, those who have questions about what a health care directive entails, an experiend attorney can help.

Source: Abajournal.com “Court OK’s independent medical examination for Casey Kasem,” Martha Nell, June 2, 2014

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Whether you have a will or not, part of your estate plan must deal with digital assets. Traditionally, estate plans did not deal with these assets, since they are a relatively new aspect of estate planning. However, a majority of people have email accounts, and a growing number of people keep digital copies of important documents and pictures.

So when a person passes away, what happens to the email accounts, cloud storage information and passwords that protect them all? After all, beneficiaries and executors may not know about this information, much less the passwords or usernames that come with them. In fact, technology companies are developing policies for when and how to transfer an account (such as an email or online trading account) to a loved one upon their death. 

With that said, what should a person do in order to safeguard their account against unauthorized use? An experienced estate planning attorney can help you with the following:

–          Organizing digital data by tracking down information from a variety of sources

–          Helping you understand company policies regarding transfer and use of information

–          Identify products and documents that can safeguard your  information

–          Provide access to trusted individuals as well as detailed instructions for how to use the information

All of these, and other steps are part of a 21^st century estate plan. Keep in mind that no two estate plans are alike, and there is no set standard for protecting digital assets. If you have questions, an estate planning lawyer can help.

Source: cnbc.com “Protect your digital assets after your death,” Thomas Henske, May 19, 2014

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The legal wrangling between Casey Kasem’s wife and Kasem’s children continues. Last week, a judge ordered an investigation in to Kasem’s whereabouts after his children had complained that he had been removed from the state of California without their knowledge. Kasem, who is best known for his long-running radio show detailing America’s top-40 songs, is 82 years old and suffers from Lewy body dementia, which results in a progressive decline in mental abilities.

Over the course of the last year, the litigation over his care, and the children’s ability to spend time with him, have been hotly contested issues. Specifically, the children have expressed concern about not being included in decisions about his care, and they have complained that they have gone long periods of time without being able to see him.

The problems are emblematic of family struggles when a family matriarch (or patriarch) becomes ill and adult children bicker over what to do. Some people draw up healthcare directives or living wills to avoid this problem. Through these documents, a person can designate a representative (or proxy) to communicate with medical personnel and make sure that the person’s wishes are carried out in the event they cannot communicate.

In the meantime, Kasem was found safe in Washington state. He reportedly was on vacation with his wife, Jean. He also is said to have known where he was and went on vacation willingly. Kasey’s daughter, Kerri expressed relief and gratitude towards authorities.  Nevertheless, it is expected that the legal disputes between Jean and the children will continue.

Source: ABC News.com “Casey Kasem found safe in Washington,” May 15, 2014

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Michael Jackson’s estate could be liable for paying more than $500,000 in legal fees if a Los Angeles County Superior Court judge rules in favor of concert promoter AEG. The promoting giant was sued by Jackson’s mother for wrongful death stemming from his demise from a fatal dose of propofol  by former cardiologist Conrad Murray in preparation for a stint of concerts in London, dubbed the “This Is It” tour.

Attorneys for AEG initially sought $1.2 million for fees in defending the suit; claiming that it should have never been brought. The trial lasted five months and ended up in a ruling in favor of AEG. In a tentative ruling issued this week, the court found that Jackson’s mother is liable for $800,000 in legal fees. Jackson’s lawyers have vowed to appeal the ruling after it becomes final. 

The ruling is significant because it would ostensibly be paid through Jackson’s estate. It is estimated that the estate has earned hundreds of millions of dollars since the King of Pop’s death in 2009. It is also reported that his debts have been paid off. With a new album release this week, Xscape, it is estimated that the estate will continue to earn money.

 However, the well-publicized battle with the Internal Revenue Service is still being litigated. The IRS seeks hundreds of millions in unpaid estate taxes based on inaccurate assessments of the value of Jackson’s estate. If Jackson’s lawyers prevail in tax court, little if any, taxes. However, if the IRS wins, there could be some financial turmoil with the estate.

Source: Nbclosangeles.com “Judge: Michael Jackson’s mom should pay costs,” Anthony McCartney, April 14, 2014

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 In a number of our posts we have noted that estate planning is helpful for people at just about any age. You don’t need to have millions in liquid assets, multiple real estate holdings or tax shelters in order to have a basic estate plan. In fact, just having an idea about how you would want to be treated medically if you are unable to speak, or who you would want to make decisions on your behalf is enough. With this in mind, we offer this post to introduce the basic things you should have in your estate plan.

A Will – At its core, the purpose of a will is to establish directions for how you want to distribute your assets in the event of your passing, and to appoint someone to handle your affairs. This includes how outstanding expenses will be paid, and how ceremonies will be handled, among other things.

A Durable Power of Attorney – This document allows you to appoint someone to act as your agent to make legal and financial decisions in the event you become incapacitated. It is different that appointing an executor because that person does not become effective until the testator passes away.

A Living Will – This document, also known as a healthcare directive, specifies how you wish to be taken care of with regard to end-of-life care. It can specify how what medical treatments should be eliminated, such as continued artificial respiration or feeding tubes if you experience a critical, permanent life event. This could be made in conjunction with a medical power of attorney.

Source: WSJ.com “Four estate planning documents everyone should have,” Tom Lauricella, April 20, 2014

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To those who are retired, have plenty of money and are entering their golden years, the importance of an estate plan may be an afterthought. After all, they probably have managed their money and assets well up to this point, and may feel that creating an estate plan invites morbid thoughts of their own mortality.

The same could be said for young people who are just entering adulthood. They may feel as if they are indestructible, and are destined to live into their eighties. Because of this, they may believe that they are too young for estate planning and have plenty of time to do so later in life. 

Both notions are problematic given that no one can predict the future with reasonable certainty. Also, both may be overlooking important, and troubling implications of passing away without a will, trust, power of attorney or transfer on death deed.

For instance, you may not realize that without a will, your assets may not be distributed according to your wishes, and they may proceed through a lengthy and costly probate process. Additionally, California’s probate code, and not you, may end up deciding who is entitled to your assets. This could create further angst and conflict if you have family members who do not get along or believe that they are entitled to more than others in the family.

Further, the tax burdens that can be potentially created without a will should be of particular concern. Not only may federal taxes affect the state, but other costs and fees may compromise the estate.

Source: WSJ.com “When a client does not have an estate plan,” Austin Kilham, April 18

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