Look for Me at the 2013 MSBA Probate & Trust Law Section Conference

I'm excited to announce that I'll be presenting on my favorite estate planning topic, estate planning for transnationals, at the 2013 MSBA Probate & Trust Law Section Conference! My session will be a discussion of 13 dangerous assumptions that estate planners can have when dealing with transnational clients.

I've been preparing my class materials, which meant that a few other things, like my monthly blog posting, fell by the wayside. I do plan on giving a little taste of my presentation in future blog posts.

As always, there will be a variety of interesting topics. Take a look at the schedule for details.
http://www.minncle.org/seminardetail.aspx?ID=102901301

What if I have firearms in my estate?

We don’t yet know what changes there will be to State and Federal gun regulations. It does appear, at this time, that a possible expansion of background checks for gun transfers in Minnesota will be limited to person to person sales at gun shows. Even if gun regulations don’t change an iota, there are current regulations you should address in your will. For example, various individuals are prohibited from owning firearms, such as felons or minors. What happens if an heir or the specific person you gift the firearm to in your will becomes ineligible to own it? Your will should give specific direction to your personal representative if that happens. The last thing you want for your estate is confusion if a gift can’t go to a person you wanted it to.  If you plan to have firearms in your estate, be sure to let your attorney know. You should have a will and specifically address the transfer of firearms.

South Carolina Supreme Court Upholds Testator (in this case the Godfather of Soul) Rights

Financial Planning is reporting on a South Carolina Supreme Court case that tells the State Attorney General to respect testator intent.

http://www.financial-planning.com/blogs/Was-the-Godfather-of-Soul-Estate-Hijacked-2683573-1.html?pg=2

James Brown laid out clear intent in his will to provide for the education of the poor in Georgia and South Carolina. However, there was a claim against the estate from a woman who claimed to be legally married to Brown after he made the will and their son, who was also born after the will was made.

After prolonged litigation, the State Attorney General stepped in on the basis of representing the rights of the intended charity, settled the matter. Part of the settlement included removal of the current trustees of the charity. They sued and ultimately the state Supreme Court took a look and determined that the AG overstepped his bounds in removing the trustees and settling with the woman and son.  The Supreme Court stated, “The compromise orchestrated by the AG in this case destroys the estate plan Brown had established in favor of an arrangement overseen virtually exclusively by the AG.” 

This case highlights the high value American jurisdictions place on testator intent. Of course, this case also highlights the need to review your estate planning documents as your circumstances change, such as marriage, divorce, and the birth of children.

Holographic Wills are Causing a Headache in the Kinkade Estate

Forbes is reporting on the strange case of the Thomas Kinkade estate.
http://www.forbes.com/sites/trialandheirs/2012/07/09/did-artist-thomas-kinkade-change-his-will-while-drunk/

The ubiquitous artist died in April 2012, leaving behind an estranged wife, girlfriend, and according to the girlfriend, two handwritten (called "holographic") wills. The wills leave extensive gifts to the girlfriend. In California, where the probate has been commenced, the requirement for witnesses is waived if the entire will is handwritten by the testator. In this case, witnesses would have been really handy to let the court know whether Mr. Kinkade had the capacity to execute these wills. A handwriting expert, hired by The Mercury News expressed the opinion that the writer was likely "three sheets to the wind", which casts great doubt whether he had the capacity to execute these documents.

Minnesota, unlike California, does not allow for holographic wills. If Minnesota law governs the execution, it must be witnessed by two people. If you have wishes you want respected at your death, meet with a licensed attorney to ensure it meets the requirements your state has on a will... and don't be three sheet to the wind when you sign it.

Creditor's Claim in Jackson Estate

TMZ is reporting that Michael Jackson's personal assistant is filing a creditor's, claim against the Jackson estate, three years after the singer's death.
http://www.tmz.com/2013/01/06/michael-jackson-assistant-creditors-claim/

In Minnesota, under Minnesota Statute 524.3-803, most creditors' claims are barred, meaning that the creditor is out of luck regardless of how good the claim is, up to one year after the death of the debtor and in many cases earlier.

Seemingly a catch under Minnesota Statute 524.3-104 , is that creditors' claim can not be brought until a personal representative is appointed. That leaves a small or, in some cases, non-existent window to bring a claim. So what's a responsible creditor in Minnesota to do? A creditor can petition the court to open the probate 45 days after the death of the debtor and be named or request another party to be named as a personal representative, under Minnesota Statute 524.3-203. This can be a viable option in extreme cases. In any case, hoping to get paid back three years after the death isn't the best idea, in Minnesota or anywhere else.

I Did a Will Years Ago and Need to Make Changes. How Do I Do That?

If you’re looking at a will that’s a few years old, you might see things you want to change. The natural inclination is to scratch what no longer makes sense and write in a new direction. This is not permitted in Minnesota. How is a probate judge supposed to know that someone else didn’t find your will and scratch out the parts they didn’t like? In order to be recognized, changes must be done in the same way the will was done in the first place, most importantly by having two disinterested people witness the change. One option is a codicil, or amendment, to the will. This works well for straightforward changes like who serves as personal representative. If there are a lot of changes to be made or if you don’t want interested people to later on find out you made a change, you should consider doing a brand new will. If your old will doesn’t reflect your current intent, speak with a licensed attorney to make sure your changes are recognized.

If You Get a Divorce, You Need to Do Estate Planning.

If you've gotten a divorce, you no doubt have had your fill of attorney bills and court appearances, even in the best of circumstances. But, just because your divorce is final, doesn't mean all of the legal issues arising from the divorce are neatly tied up with a bow. If you have significant assets and minor children, you want to set up a trust to manage the money for them. Perhaps even more importantly, through proper planning you can choose who manages the money. This is important if your ex isn't exactly your first choice. Another sticky issue could be naming a personal representative to wrap up your affairs. If your estate needs to be probated, which is likely if you own real estate, a personal representative will be appointed. Prior to the divorce, your spouse would have been first in line to serve in that capacity and the court's natural choice. Now that you're not married, the best person to serve may not be clear. Which adult-child/parent/sibling should serve? Proper planning can let you let the court know who you prefer. After all, after going through a divorce, you out of anyone knows the importance of trying to avoid a court fight. Planning now can help avoid that for your loved ones.