The title of the seminar is Estate Administration Procedures: Why Each Step is Important. Along with Mr. Printz, faculty will include Janathan Allen of Allen Barron, sole practitioner Stuart Schechter, and Charles T. Scott of Kimball, Tirey & St. John.

The seminar will provide the following credits: California MCLE Paralegal; CFP for Financial Planners - 8.0; CLE for Attorneys- 6.75; CTEC for tax preparers- 8.0; IACET – 0.7; CPE for accountants/NASBA – 8.0; and PACE (CLU, CASL, ChFC) – 8.0

To register, call (800) 930-6182 or go to www.nbi-sems.com.

This is a basic level seminar, and provides fundamental estate administration topics for: attorneys; accountants; paralegals; trust officers; estate planners; and financial planners.

As so often happens, the most important story is the one not told.  Yesterday, Inside Edition broke the news that the late Tony Curtis, who passed away in September of 2010, had specifically disinherited his children in his will. To the tabloids, what is important here is that, five months before his death, Tony Curtis re-wrote his will.  (Amusingly, some have referred to five months before his death as his “last days.”)

I haven’t personally seen the will, so I’m don’t know whether Inside Edition is correct in it’s implied allegation that Mr. Curtis apparently didn’t leave anything to his children. After all, he could have easily provided for them in other ways (life insurance, direct beneficiary investment accounts, etc.).

Assuming that they are correct,  what is astonishing is not that he disinherited his children, which frankly happens often enough not to produce comment by estate planning attorneys like myself, but that he chose to do so publicly when it would be so easy to privately leave his estate to his widow, Jill Vandenberg Curtis.  Let me quote InsideEdition.com:

“INSIDE EDITION has obtained the will, written five months before his death from cardiac arrest last year at age 85. His children are listed by name, including Jamie Lee. Then there’s this statement: “I acknowledge the existence of my children…and have intentionally and with full knowledge chosen not to provide for them.”  Instead, Curtis leaves his estate to his widow, Jill.”

Ignore for a moment that Tony Curtis has joined a long line of celebrities who fail to consider the ramifications of the Probate process.

Instead, consider this: Tony Curtis could have accompished the exact same thing, disinheriting his children and leaving his entire estate to his wife, and done it privately, without his widow and children being exposed to our prying eyes.

If Tony Curtis had made a trust, then his will would simply direct that his entire estate be distributed to the trust. Then, in the trust document, which would remain private, he could direct that everything be distributed to his wife.  Voila!  The exact same result, but without dragging the family through the tabloid mud. After all, it’s really none of our business.

Furthermore, by using a trust, he could have easily left something to his favorite charities, to particular friends, or to his grandchildren or great-grandchildren, who one assumes are too young to have voiced disapproval over Mr. Curtis’ life choices. It begs the question: was the omission intentional? Did he actually desire this result, or did he just not ask anyone’s advice? I think it was the latter – most people simply don’t know the right questions to ask.

Ironically, Jill Curtis’ response to the tabloid reports was: “Tony’s last will and testament and his passing wishes . . . are private family matters.” Sadly, they’re not private at all. But they could have been. 

Accounting Contents:

  (1) The property on hand at the beginning of the period covered by
the account, which shall be the value of the property initially
received by the fiduciary if this is the first account, and shall be
the property on hand at the end of the prior account if this is a
subsequent account.
   (2) The value of any assets received during the period of the
accounting which are not assets on hand as of the commencement of the
administration of an estate.
   (3) The amount of any receipts of income or principal, excluding
items listed under paragraphs (1) and (2) or receipts from a trade or
business.
   (4) Net income from a trade or business.
   (5) Gains on sales.
   (6) The amount of disbursements, excluding disbursements for a
trade or business or distributions.
   (7) Loss on sales.
   (8) Net loss from trade or business.
   (9) Distributions to beneficiaries, the ward or conservatee.
   (10) Property on hand at the end of the accounting period, stated
at its carry value.
 

What should an accounting look like?

SUMMARY OF ACCOUNT
  CHARGES:
  Property on hand at beginning of
                                     $ ____________
  account (or Inventories)
  Additional
  property received (or              ______________
  Supplemental
  Inventories)
  Receipts (Schedule ___)            ______________
  Gains on Sale or Other
  Disposition                        ______________
  (Schedule ____)
  Net income from trade or business
                                     ______________
  (Schedule____)
  Total Charges:                     $ ____________
  CREDITS:
  Disbursements (Schedule ____)      $ ____________
  Losses on Sale or Other
  Disposition                        ______________
  (Schedule ____)
  Net loss from trade or business
                                     ______________
  (Schedule ___)
  Distributions (Schedule ___)       ______________
  Property on hand at close of
  account                            ______________
  (Schedule ___)
  Total Credits:                     $ ____________

Total charges should equal total credits.

What schedules does the summary of the accounting need?

(a) Receipts, showing the nature or purpose of each item, the
source of the receipt, and the date thereof.
   (b) Disbursement, including the nature or purpose of each item,
the name of the payee, and the date thereof.
   (c) Net income or loss from a trade or business, which shall be
sufficient if it provides the information disclosed on Schedule C or
F of the federal income tax return.
   (d) Calculation of gains or losses on sale or other disposition.
   (e) Distributions of cash or property to beneficiaries, ward or
conservatee, showing the date and amount of each, with the
distribution of property shown at its carry value.
   (f) Itemized list of property on hand, describing each item at its
carry value.

If the trustee has not produced something that looks like this – there is only a short period of time to object!  Contact a trust administration attorney as soon as possible.

Dear Sir:  Father did not own any property and did not have a will. Was divorced before death from my mother. Never remarried. My mother believes I was named the executor during the divorce proceedings but I was never notified. My father got very sick soon after the divorce and died. Have one brother who was not notified of being the executor. Items left to us have a value of maybe $2500, but legally need an executor to transfer ownership to a properly licensed person.  How do I get the property?

Answer:

I’m sorry for your loss.  How this situation is handled will depend on the state your father was living in at the time of his passing.  All states have some form of small estates administration that will permit you to access small amounts of property with some form of affidavit procedure, rather than a formal probate. With that affidavit, it is not necessary to look for a ruling a divorce proceeding – you simply notify the account holder that your father has passed away, that you and your brother are the legal heirs under the intestacy law of that state, that no other claimant exists with a better claim, and that no probate proceeding is anticipated. Attach a copy of the death certificate and you should be given the property.

In California, this is handled under Probate Code Sections 13100 et seq.  That being said: each state’s requirements for the small estates administration procedure is slightly different, so you’ll want to consult a probate attorney in the proper state.

Absolutely!  You do not have a right to keep funds given by mistake. Consult a local probate attorney regarding the statute of limitations on recovery of the disbursement.  If the beneficiary refuses to return the balance, the executor will sue on behalf of the trust, and the costs of suit might be added to the recovery.

March 23, 2010 at the Hilton San Diego Gaslamp Quarter: 401 K Street, San Diego, CA 92101. (619) 231-4040. 

9:00 A.M. – 4:30 P.M.

This is an intermediate level seminar designed for those specializing in estate planning and administration. Seminar led by: Meredith G. Alcock, Esq.; Audrey J. Grossman, Esq.; David P. Jones II, Esq.; and, Daniel K. Printz, Esq.

6.0 units of CLE for Attorneys and Paralegals. 6.0 units of specialization in the area of estate planning for the California Board of Legal Specialization.

Cost: $339 first attendee; $329 each additional. Audio Recording: $339. Manual only: $99. CD and Manual only: $199.

Enroll at: http://www.thelegacylawyer.com/first

You should strongly consider a revocable living trust if any of the following are true:

1.    You own real property

2.    You have over $100,000 in gross assets

3.    You want to maintain your privacy

4.    You want to protect your children from squandering their inheritance

How does a revocable living trust accomplish these goals?  It avoid probate by keeping all of your trust assets outside the reach of the probate court. It protects your children against squandering their assets by permitting distribution over time. For example, you can instruct that your children will receive their inheritance 1/3 at age 21, 1/3 at age 25 and 1/3 at age 30.  Finally, the revocable living trust protects against incapacity by providing a technique for a successor trustee to immediately take management control of your property if you are ever unable to manage your financial affairs.

Call us today for a no-cost conversation about revocable living trusts.