Author Archives: Jason C. Morris, Esq.

Carson City Recluse Leaves $7 Million Fortune in Gold

Posted on September 19, 2012 | Leave a comment

A Carson City man, Walter Samaszko, passed away in June with apparently no heirs and very little personal wealth.  However, cleaners preparing his house for sale discovered he held over $7 million in gold.  The Mercury News reports that a San Rafael, California woman appears to be the sole heir to the fortune. 

Mr. Samaszko, an anti-government champion, was dead for at least one month before neighbors discovered his corpse. Months later, the vast fortune was uncovered and includes stock accounts valued at over $165,000 and cash of $12,000.  The estimates of the $7 million estate are solely based on the weight of the gold.  However, there are rare, antique coins in the collection which could drive the total value far higher.

While this case is extremely unique for a number of reasons, there are lessons to be learned:

One, never assume the size or extent of anyone’s estate.  Despite appearances to the contrary, there are many wealthy individuals who show no signs of their wealth.

Two, plan now for incapacity and death.  There is no telling what Mr. Samaszko intended to do with his gold collection.  However, some simple estate planning could have assisted him in avoiding over $1 million in taxes.  Likely Mr. Samaszko would be abhorred to think that the government will be the beneficiary of his failure to plan.

Three, keep in contact with relatives, whether distant or remote.  You never know if you might end up becoming the lucky recipient of a gift or bequest from a family member.

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Posted in Estate Planning, Probate, Trusts, Wills

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To Do List Upon Death of Family Member

Posted on September 4, 2012 | 4 comments

The October 2012 issue of Consumer Reports highlights numerous steps one can take upon the passing of a family member or loved one.  Among the listed items, some steps are overlooked and cause greater anguish and financial difficulty for those who survive the decedent.

Consultation

While many employers receive word that an employee has passed, few surviving family members contact human resources or employe benefits coordinators.  Employer specialists can quickly begin the process of obtaining benefits and providing any pay due.  Certain financial institutions “drag their feet” when it comes time to pay out benefits so starting the pay-out process sooner is always beneficial.

Many family members fail to look for prepaid burial plans or other arrangements made by the decedent during lifetime.  If the decedent already paid for funeral services, the mortuary will pick-up the body and assist the family members with the completion of vital tasks. The mortuary or funeral home will help obtain death certificates and can assist in the coordination of the memorial or funeral service. As with many industries, the costs of these services have risen such that a prepaid plan can result in significant savings.

Hopefully, you are well aware of your loved ones’ wishes such that you will know whether a prepaid plan is in effect.  If not, you should at least know where the decedent kept important documents such as a trust, will, and financial documents.  If you have no idea where such important information is kept by your loved one, you should discuss the matter soon.  For assistance discussing these sensitive matters, you can contact an estate planning attorney today.

– Jason C. Morris, Esq.

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Posted in Estate Planning

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Joe Paterno’s Will Reveals Little More Than Revocable Living Trust

Posted on June 21, 2012 | Leave a comment

Today, closing arguments are being held in the jury trial of accused sex offender Jerry Sandusky.  His former boss, legendary Penn State football coach Joe Paterno, has created intrigue in an unrelated legal matter.  Paterno’s family sought court protection to seal Paterno’s will from public disclosure. After a local newspaper filed a motion to unseal the will, Paterno’s family made public his 1997 will and 2010 codicil to the will.

ImageAfter reviewing the contents to the will and the codicil, there is nothing surprising or notable about their contents.  The family’s efforts to seal the testamentary documents seem unreasonable and misguided.  Typically, wills must be lodged with the county court or probate department before the decedent’s assets may be distributed.  Paterno’s will is a pour-over will meaning it directs any probate assets to be poured over to a revocable living trust.  Most likely, the Paterno revocable living trust specifies the distribution of Paterno’s assets.

A revocable living trust is advantageous because you do not need to lodge the trust with the court.  The administration of the trust and distribution of the estate can take place outside of public review and records.  In addition, with advances in medicine and technology, individuals are living beyond their ability to manage their financial affairs.  Revocable living trusts allow successor trustees to take over and manage the financial affairs of those suffering from diminished capacity.

Living trusts are only effective insofar as you title the assets properly.  Your assets should be titled in the name of the trust.  The Paterno will, a pour-over will, acts as a backstop in the event that an asset is not titled properly in the name of the trust.   Any asset that is not transferred into a living trust must pass through probate first prior to its distribution.  Oddly, the Paterno family has not filed a petition to initiate a probate of any assets.  The family efforts to seal the will and codicil appear unnecessary and unusual. As with the Sandusky trial, the Paterno will story may end this week. Or, future court proceedings may loom ahead.

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Posted in Asset Protection, Estate Planning, Revocable Trusts, Trusts, Wills

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Morris Passes California Bar

Posted on June 14, 2012 | Leave a comment

Jason C. Morris, an associate specializing in estate planning, passed the February 2012 California Bar Exam.  Mr. Morris drafts trusts and wills for clients ranging from basic wills to complex trusts with generation skipping transfer tax planning. Mr. Morris also advises fiduciaries, personal representatives and trustees, in probates and trust administrations.  Woodburn and Wedge is continuing to accept representation of clients residing or doing business in California.

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Posted in Award, Estate Planning

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Open Shop in Reno, Save Taxes

Posted on April 30, 2012 | Leave a comment

ImageThe New York Times recently reported on Apple’s tax strategy which involves funneling profits through a Nevada corporation with offices in Reno, Nevada.  Apple has wisely taken advantage of Nevada’s non-existent corporate tax. In addition, Nevada does not have a corporate capital gains tax. While the tech giant is based out of Cupertino, California, Apple maintains a Reno office to collect and invest profits from its worldwide sales of iPods, iPhones, iPads, etc.

Estimates peg Apple’s current fiscal year profits at $46 billion, expected to be a record for an American business.  By largely avoiding California’s corporate tax rate of 8.84 percent, the tax savings are substantial.  Apple is not alone in seeking refuge in Nevada from the onerous California tax rates.  Microsoft operates a revenue recording center in Reno, Nevada to avoid the state of Washington’s royalty tax.

Not only does Nevada have low, or non-existent corporate tax rates, but also Nevada’s corporate laws are second-to-none.  Just a few of the protections afforded to Nevada entities are featured here.  If Apple and Microsoft embrace doing business in Nevada, should others consider following their lead?

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Posted in Tax

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