Fall 2019 Editor: Diane Slomowitz an ESTATE PLANNING TOOL WE’D RATHER NOT USE
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THE E.P. EXPRESS FOS’s Estate Planning Newsletter Volume 7, Issue 2 An ounce of prevention. Fall 2019 Editor: Diane Slomowitz AN ESTATE PLANNING TOOL WE’D RATHER NOT USE This newsletter often empha- problem. her affairs. prove incompetency and the sizes the benefits of powers of need for a guardian. attorney to designate individu- This situation calls for a Take Britney Spears, who als to act on your behalf if you guardianship - an estate has been under Califor- A guardianship may be tem- are unable to do so. (See arti- planning vehicle which may, nia’s version of a guardi- porary, for example during cle on page 3, “A Director if appropriate, minimize anship for over a decade. medical treatment, or per- Who Failed to Direct His Own potential future harm. manent. Her father had long acted Life.” ) In a guardianship proceed- as her guardian, making To ensure that the guardian What happens, though, if a ing, the court determines financial and other deci- is acting responsibly, the mentally or physically im- whether a person is legally sions on her behalf, as she appointing court supervises paired person should not be incompetent. If so, the court resurrected her singing the guardianship, including making financial or other deci- appoints a “guardian” to career and personal life. through the review of annu- sions, has no power of attor- make decisions and act on al financial and/or physical The court has monitored ney, and refuses help offered behalf of the “ward.” condition reports filed by the guardianship as recent- from responsible family mem- the guardian. Incompetency is difficult to ly as early September, bers or friends? prove, for good reason. One when Spears’ father tem- Source: How do you stop a treacherous is not incompetent just be- porarily resigned as guard- www.rollingstone.com/ path of reckless spending, or cause he or she makes poor ian for health reasons, and music/music-news/britney- even physically threatening decisions. was replaced by Spears’ spears-court-hearing- care manager. conservatorship-834334/ acts? In varying degrees, we Incompetency requires ex- all know of a family which is treme disabilities preventing Medical expert testimony or has been in the thick of this one from managing his or is may be required to “EQUAL PARTICIPATION” –EQUAL TO WHAT? Singer Tom Petty, who died in catalogue. long as the authority is tion” in the catalogue’s October, 2017, was as careful reasonably exercised. management. with the lyrics to his songs as Petty’s estate planning docu- he was with the music. ments include a trust, which In Petty’s trust, for exam- Petty’s daughters interpret names as trustee Petty’s wid- ple, this authority likely “equal participation” to Had Petty’s trust been as care- ow (who is not the mother of includes the power to re- mean one third by each fully crafted as Petty’s lyrics, Petty’s daughters). package, reissue, license daughter and one third by his estate would not be stuck and/or even sell rights to the trustee. in litigation almost two years Commonly, a trustee is given Petty’s music. Petty’s after his death. authority to manage a trust’s trust, however, did not To Petty’s widow, “equal assets which, in Petty’s trust, give his widow trustee participation” means one- At issue is how much control include his music catalogue. sole management power. half by the trustee, and one Petty’s two daughters have -half by both daughters as a over the management of his This authority can give a It provided that his daugh- unit. extensive and profitable music trustee substantial power, so ters have “equal participa- Continued on page 2 The E.P. Express— An ounce of prevention. FOS’s ESTATE PLANNING WE FOUND THE WILL….AND ANOTHER ONE…..AND ANOTHER! ATTORNEYS Maybe Aretha Franklin needed a better housekeeper. FOS shareholder Recently, over a million dollars in uncashed checks were located in Aretha’s Allan T. Young home. The Fall, 2018 edition of this newsletter recounted public statements that the singer did not have a will when she died in August, 2018. (See “R-E-S-P-E-C-T YOUR ESTATE PLAN”). A Certified Public Accountant As it turns out, Aretha had made out a will. And a second one. And a third. (CPA), Al worked at the Big 8 Arthur Andersen accounting firm before Three handwritten wills were belatedly found in the singer’s home. joining FOS. Two, from 2010, in a locked cabinet after its key was found. Al is a member of the Greater Mil- waukee Foundation’s Herbert J. The most recent, from 2014, in a spiral notebook under living room cushions. Mueller Society. He is a past Chair of the Wisconsin All three documents were filed with the probate court in May, 2019. Bar Association’s Taxation Section. By law, the most recent valid will would govern the disposition of Franklin’s Al is a former Chair of the Milwau- assets. These documents’ discovery caused the existing probate proceeding to kee Bar Association’s Taxation Sec- spiral almost out of control. tion. Al is a member of WICPA’s State Continued on page 3 Tax Committee and the Waukesha County Estate Planning Council. Equal Participation, continued from page 1 FOS shareholder Petty’s daughters then would not have veto power over the trustee’s decisions and could not mandate action themselves. Gregory J. Ricci Even so, if a disagreement arose between the trustee, on the one hand, and the daughters, on the other hand, the court would resolve the issue. Petty’s trust highlights the importance of clear language in legal documents, espe- cially estate planning documents. Greg worked at the Big 8 Arthur An- A deceased grantor cannot explain what he or she intended to mean by disputed or dersen accounting firm before joining ambiguous language. FOS. He is a CPA. Careful drafting could have prevented the Petty family litigation. Greg served on the Board of the Wis- consin Bar Association’s Taxation The trust, for example, could have said “My two daughters and the trustee shall Section. each have a one-third vote in the management of the trust assets.” He also served on the American Bar Association’s Fiduciary Income Tax Or the trust could have said “The trustee shall have one-half vote, and each of my Committee. two daughters shall have a one-fourth vote, in the management of the trust assets.” Greg is a member of the Greater Mil- FOS’s estate planning attorneys have the drafting expertise and techniques to en- waukee Foundation’s Herbert J. sure that your will, trust or other estate planning document means what it says, says Mueller Society. what it means, and unambiguously expresses your intent. He is also a member of the Milwau- kee Estate Planning Forum. Source://www.forbes.com/sites/russespinoza/2019/05/16/tom-pettys-daughters-sue-artists- widow-for-control-of-estate-and-damages/#776b06462447 The E.P. Express— An ounce of prevention. Volume 7, Issue 2 A DIRECTOR WHO FAILED TO DIRECT HIS OWN LIFE A Health Care Power of Sadly, Singleton died a few six children born after his Attorney designates an days after his stroke. will are “gearing up for a agent to make medical deci- fight” over his assets, in or Unfortunately, while Single- sions on behalf of one who out of court. ton had a will (it is not cannot do so on his or her known whether he had a Had Singleton updated and own. trust), the will was 26 years completed his estate plan A Durable Power of Attor- old, left everything to his while he was still healthy, his Over this thirty-year career, ney designates an agent to one then-living child, and family could have come to- Oscar-nominated director take financial actions, in- did not account for his six gether to support Singleton, John Singleton dictated how cluding bill payment, in- subsequently-born children. and each other, instead of life appeared on screen, from come collections, asset in- splitting apart. As often happens in times of his early film “Boyz N the vestments and asset sales, crises, when no or outdated Learn from Singleton’s mis- Hood,” through his later on behalf of the grantor. estate planning documents take. Direct your own life. work on the TV shows Without these documents exist, Singleton’s family Call your FOS estate plan- “Empire,” and “Billions.” Singleton, who was di- members ended up angry ning attorney to create or Unfortunately, the 51-year- vorced, had no legally- and fractured. review your estate plan. old Singleton failed to direct designated agent to make Before his death, some Sources: his own life. He had neither decisions and act on his members asked the court to a complete nor a current behalf as to his health emer- www.nytimes.com/2019/04/29 appoint them to handle Sin- estate plan. gency. /arts/john-singleton-life- gleton’s affairs while he was support.html When Singleton lapsed into Moreover, Singleton had no ill. a coma from a stroke earlier legally-designated agent to www.tmz.com/2019/05/07/ The court ended up appoint- this year, he had neither a act for him regarding a john-singleton-will-children- ing a third-party conserva- Health Care Power of Attor- “lucrative” financial settle- fight-lawsuit-mother/ tor. ney nor a Durable (financial) ment which was scheduled Power of Attorney. to close shortly after he Since Singleton’s death, it became ill. has been reported that the Aretha, continued from page 3 pervision.