It’s the end of September. This month government benefits programs and estate taxes were top of mind. But first, how the Estate of Little Richard came out in court.
Celebrity Estate Plans
A personal representative (a/k/a an “executor”) of Little Richard’s Estate was removed from the role and lost out on his share of the estate. Why? Well, Little Richard’s will bequeathed publicity rights to a group of nine beneficiaries, including his brother and sister. These rights included royalties from his songs, as well as the use and exploitation of his name, likeness and image. Little Richard’s will also stated that if any beneficiary prevented the implementation of a plan adopted by the majority of the beneficiaries for the future management of the publicity rights, said Beneficiary forfeited any right to share in the publicity rights. Little Richard’s brother and sister, along with Little Richard’s personal attorney, were all appointed as co-personal representatives of the estate.
The beneficiaries received an offer from an entertainment company to purchase the publicity rights. The offer was sent to the co-personal representatives. Five of the nine beneficiaries agreed to purchase the rights, including Little Richard’s sister. His brother did not agree, and voiced this in an email to the beneficiaries and the entertainment company. Upon receipt of the email, the company withdrew the offer, not wanting to get in the middle of the family dispute.
The court found that the agreement to sell the rights was enough to constitute a plan for the publicity rights. They also found that the email prevented the implementation of the plan, which was agreed to by the majority of the beneficiaries. As a result, the brother forfeited his share of the publicity rights. The appellate court further found that the email was not an exercise of the reasonable care, skill, and caution that a reasonably prudent person would use, and removing him as a personal representative was appropriate.
Medicare and Medicaid
The Kaiser Family Foundation (KFF ) released a brief explaining What the Outcome of the Election Could Mean for Medicaid. The brief covers the candidates’ policies on topics related to Medicaid such as financing, eligibility, long term services, and prescription drugs. Overall, public opinion polling shows broad support for Medicaid across all political parties.
In order to receive government benefits like Medicaid, you have to meet eligibility requirements. In a recent story, NPR covered how these requirements disabilities benefits programs end up hurting those who need it. The story covers Tabi Haly, a computer software engineer who has severe muscular dystrophy. She has achieved great success in her career, in part, because of her aides, medications, and accommodations that are paid for by her government insurance. Now, SSI says she does not qualify because she makes too much money.
Also, just as a reminder, the Medicare Annual Open Enrollment Period starts on October 15th. This is a good time to review your coverage.
Estate Tax
Most estate planning clients want to avoid estate taxes upon their death. In 2024, the estate tax exemption is around $13.61 million for a single person and effectively doubled for a couple. The Wall Street Journal covered how the estate tax exemption could change when the current policies expire in 2025, and how the wealthy are planning ahead in light of the upcoming election.
Other Stuff:
- A study suggests that hypertensive people can lower their risk of dementia by drinking coffee regularly.
- Dame Maggie Smith, best known for her roles as Professor McGonagall in Harry Potter and Violet Crawley in Downton Abbey, died September 27, at the age of 89.
- The New York Times put out a piece on Do Not Resuscitate Orders (DNRs). It covers the dilemmas DNRs cause for medical professionals and the harms patients suffer when a DNR is not followed.
- Members of Native American tribes are subject to jurisdiction in both Tribal Court and Arizona Court. This affects guardianships and conservatorships of tribe members.
One Response
Reading the underlying court decision, I think it highlights what can go wrong with having matters of administration determined by a committee. I strongly encourage clients not to appoint “co-” anything.