Category Archives: Wills

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

Posted on June 21, 2012 by | 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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“It’s Your Estate” Lecture Series

Posted on April 16, 2012 by | Leave a comment

Several charities, including the Community Foundation of Western Nevada, are sponsoring a free workshop series titled, “It’s Your Estate.”  The workshops are designed to educate the public in the consumer financial arena and help them take charge of their own money and estate.  Jason C. Morris, Esq.will present on the Advanced Estate Planning topic this week of April 17th – 19th, 2012.  Mr. Morris will present at Northwest Reno Library, 2325 Robb Drive, at 2:30 p.m. on April 17th.  On April 18th, Mr. Morris will present at the Spanish Springs Library, 7100 Pyramid Way #A, Sparks at 11:30 a.m. and offer another presentation at the South Valleys Library, 15650 Wedge Parkway, Reno at 2:30 p.m.  On April 19th, Mr. Morris will present at the Sparks Library, 1125 12th Street, at 11:30 a.m.

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Posted in Estate Planning, Gift, Tax, Trusts, Wills

Choose Lawyers Instead of the Internet

Posted on January 24, 2012 by | Leave a comment

The Internet has changed numerous industries including the legal market.  Despite the many advantages of online services, there are considerable drawbacks when comparing the use of web-based estate planning forms versus hiring a competent attorney. The following list comes from a North Carolina attorney. Rather than relying on the bare information fed into a computer, a skilled lawyer can:

  1. Listen to your goals and desires and incorporate them into your plan.
  2. Offer advice, not just words on paper.
  3. Help with referrals to other trusted professionals.
  4. Make sure that the documents are properly executed.
  5. Make sure that any trusts are properly funded.
  6. Make sure that beneficiary designations are properly completed.
  7. Make sure that accounts and real estate are  properly titled.
  8. Help with managing assets of incapacitated family members.
  9. Help with probate and trust administration.
  10. Help with income, gift and estate tax matters.
  11. Help ensure governmental benefits for disabled or incapacitated family members.
  12. Serve as an advocate in dealing with financial institution and governmental bodies.
  13. Care about you and your family.

Of course, there is a sinister view that attorneys embrace computer-based estate planning programs because such planning generally leads to a much more costly probate proceeding.  To avoid the added cost and delay involved in a probate,  and enjoy the benefits listed above, consult with an estate planning specialist today.

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Posted in Estate Planning, Tax, Trusts, Wills

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“Et In Arcadia Ego…”

Posted on December 2, 2011 by | Leave a comment

Our celebration of Thanksgiving is past and now the time of year is upon us in which most people busy themselves with preparations for Christmas. The “holiday season” is a busy and stressful time of year, and this is perhaps a factor in the higher number of deaths that occur this time of year. I sometimes wonder what would happen if people put as much time into planning for their passing as they put into Christmas preparations each year.

We see many different situations in our office. Some folks call about estate planning literally from their deathbeds. Some die before the documents are prepared; others sign everything in the nick of time. Many people think there will be plenty of time in the future to take care of estate planning. Some people are afraid that if they form a trust or execute a will, it means they will die—so they put it off.

The reality is that we will all die, ready or not. It makes a lot more sense to have an estate plan in place so that the administration and distribution of your possessions will be orderly upon your death. It is especially critical if you wish to leave anything to charity, or in unequal shares to your children, or the like. Also, for those who do not have relatives in Nevada, it is important to designate who will act as executor or personal representative; non-residents are not qualified unless they are designated in a will, or associate with a resident.

If you have been procrastinating your estate planning, or updating your estate planning, I encourage you to make an appointment with a qualified estate-planning attorney.

By: Sharon M. Parker, Esq.

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Posted in Asset Protection, Estate Planning, Probate, Wills

Steve Jobs’ Billions Will Pass Pursuant to Trusts

Posted on October 11, 2011 by | Leave a comment

Not long after Apple co-founder and innovator Steve Jobs passed away, folks speculated how his fortune would pass.  Admirably, and because he could, Jobs took a $1 salary in 2010 from Apple.  However, his wealth is estimated to be $7 billion.  Jobs held a large stake in the Walt Disney Co.  In 2006, it was estimated that he received $242 million in dividends before taxes from his Disney stock.  (Remember the part “because he could”) http://goo.gl/V7SuZ

Notably, land records in Silicon Valley reveal that Jobs and his wife transferred several real property parcels into trusts in 2009.  http://goo.gl/2HG0I  The virtue of revocable living trusts is that families are protected by privacy.  Using a will to pass real property means that the assets must go through probate court.  Properly funding a trust before death means the estate and assets remain out of the public eye. Also, jointly-owned property and assets with beneficiary designations (life insurance, 401K’s) pass outside of the probate process.

Proper planning and the strategic use of trusts is also vital for potentially difficult family dynamics.  Jobs had a child out of wedlock with his high school sweetheart.  A child is not automatically entitled to a share of a parent’s estate.  So whether Jobs chose to provide for his children, and how much, will likely remain out of the public eye assuming he had the proper planning in place.  Failing to state one’s intent with regard to planning will lead to inevitable family fighting.

While you might not be able to take a $1 salary, you can take action to ensure your planning wishes are carried out.  Contact a qualified estate planning attorney at 775-688-3000.

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Posted in Estate Planning, Probate, Tax, Trusts, Wills