Posts Tagged ‘Probate’

Why You Need a Last Will and Testament

Friday, July 1st, 2011

So you may have listened to so-called legal experts or wanna-be attorneys who have suggested, in some form or fashion, that there is no need for “the vast majority of people” to create a Last Will and Testament. While this advice is immediately satisfying, you are wise to evaluate whether it is sound. First, no two legal or financial situations are alike, making one-size-fits-all advice suspect. Second, because our lives are fast-paced, hectic and often times frazzled, it is nearly impossible for individuals to cover every eventuality that life may bring our way. By creating a Last Will and Testament, individuals may rest comfortably knowing that the assets with which they have been entrusted will be distributed at death in a fashion of their choosing, not at the choosing of the state legislature.

Furthermore, couples with minor children are STRONGLY encouraged to create a Last Will and Testament that affords them the ability to select a Guardian responsible for raising their children in the event of an untimely death. And through a carefully crafted Last Will and Testament, parents with minor children are able to situate the assets of their estate in such a way that those assets are preserved and protected for the benefit of the children – without the necessity of future court intervention. Without a Last Will and Testament, the care of minor children following an untimely death will necessarily involve protracted and expensive court intervention. And that expensive court intervention could potentially last until the child reaches age 21.

So if you think there’s no need for you to create a Last Will and Testament, you might want to think again. Give the professionals at Adams & Edens, P.A., a call today to discuss whether a Last Will and Testament is right for your unique situation.

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Estate Planning – For What?

Thursday, August 5th, 2010

Estate planners and probate lawyers are anxiously awaiting Congress’s next move with regard to the estate tax. As many folks know, there is no estate tax in 2010. Heirs to billion dollar fortunes are making out like bandits if their benefactor dies in 2010 – kind of weird thing to read, isn’t it? But it’s true. Famous New York Yankees owner and billionaire George Steinbrenner died this year, and there have been others. One thought that’s been bandied about is that Congress could make the new estate tax retroactive to 2010. If this doesn’t put a rush on a probate I don’t know what will. Here’s a good update on the estate tax, where it stands now, and where it could go. Keep your local estate planner’s number handy. You may need it soon.

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Estates in the News

Tuesday, September 15th, 2009

A couple estates have been in the news recently.

Mississippi native Steve McNair’s wife recently filed an inventory in his estate. According to the inventory, the estate’s estimated value is $19.6 million. I’m curious how much legal fees have been incurred by McNair’s failure to leave a Will. An inventory is often waived in a Will. Since McNair died intestate (without a will) his administrator, in this case his wife, was required to provide an inventory to the court. In an estate the size of McNair’s, this was probably costly, or at the very least time consuming.

Also in the news is the battle among Martin Luther King, Jr.’s heirs. I’ll bet Martin Luther King, Jr., one of the great men in our country’s history, never dreamed his family would fight over his estate one day. This is yet another example of the importance planning your estate. Who says probate isn’t interesting?

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Deceased Mayor Melton Died Intestate

Thursday, August 20th, 2009

Deceased former Jackson mayor Frank Melton couldn’t stay out of court the last few years of his life and he left the door wide open to stay in Court even after his death since, according to this article in the Clarion Ledger, he did not have a Last Will & Testament. For a man of Melton’s wealth, dying intestate (without a Will), was really inexcusable, especially with his seemingly complex family situation. Melton lived in Jackson, and his wife lived in Texas.

Melton’s estate is being probated in Texas, even though he claimed to be a resident of Mississippi, lived in Mississippi, and died in Mississippi. Had the estate been probated in Mississippi, his children would have stood to inherit a third of his estate, but according to Chris Joyner’s article, Melton’s wife stands to inherit more by probating the Will in Texas. In some situations, a mess like this would lead to a contested estate. In this case it has not. Yet.

A Last Will & Testament could have clarified the jurisdiction issue by a declaration of residency. It could also have settled any questions regarding the distribution of Melton’s assets among his heirs.

How would Melton want his estate dispersed? In all likelihood, no one will ever know, because he died without a Will.

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Good Bookkeeping Essential for Executors and Personal Representatives

Tuesday, August 18th, 2009

While it is a common practice in the drafting of wills for the testator to waive accounting and inventory in the probate of the estate, that does not mean the other beneficiaries lose the right to object to the mismanagement of the Estate. In Estate of Thomas: Thomas v. Thoms et al., No. 2008-CA-00462-COA, the will contained a similar waiver of accounting. However, when the executor filed his Petition to Close Estate and Discharge Executor, his siblings objected, alleging maladministration of the Estate. The Court ordered the Executor to file an inventory and accounting. Following a trial on the matter and a lengthy review of the accounting  the Court surcharged the Executor $267,477.41, representing the amount of expenditures for which the chancellor could not determine the purpose of the expense. In its findings, the Court gave a detailed account for those expenses listed in the accounting for which the Executor had established a legitimate estate purpose. However, there were other expenses for which the Executor’s records did not contain a purpose for the expense:

The Court will not make further assumptions about the purpose of the remaining checks written on the Estate’s checking account given the complete incomprehensibility of the so-called accounting and the amount of time and the number of opportunities  had to prepare an accounting.

The Chancery Court further stated:

The Court has painstakingly gone through the so-called accounting filed by the Executor and the copies of the more than 1,200 checks written by the Executor on the Estate’s checking account, most of which contain nothing whatsoever on the “memo line.” The Court is asked by [John] to approve his so-called accounting, but to do so would be to approve the unknown; what was the money spent for and where did it come from. The Court cannot approve such an accounting.

The Court of Appeals of Mississippi upheld the chancellor’s decision. Executors and probate attorneys should take note. Even in seemingly simple probates, it is important to keep detailed records regarding expenses. Use that memo line!

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