Posts Tagged guardianship
Analyzing Michael Jackson’s Will
Posted by in Estate Planning, Guardianship of Children, Probate on July 7th, 2009
I took a quick look at Michael Jackson’s will and not surprisingly it is quite similar to the wills I prepare for my client everyday. His will is only a few pages long and accomplishes three basic things
- Appoints executors for his will
- Expresses his preference as to whom should be the guardian for his children
- Transfers all of his assets to his trust
These are the primary purposes of a typical pour-over will that anyone who owns a home and has children should have. While the typical pour-over will is designed to avoid the probate process, Michael Jackson’s estate is an example of an estate that would benefit from being subject to probate. Since we have huge aseets and many creditors involved and complicated child custody issues, a probate court is probably the best place to resolve these issues. While the legal fees are likely to be significant, the complexity of his estate would be incurred whether or not he used a living trust to own his assets.
Michael Jackson and his estate planning
Posted by in Estate Planning, Estate Taxes, Guardianship of Children, Living Trust, Probate on June 30th, 2009
With the shocking passing of pop icon Michael Jackson, many questions are arising about what happens next to his children and his estate. The primary issues regarding his estate and family will be
- Who will be the Guardian to his children ( Two with Debbie Rowe and one by surrogate)?
- What is the value of his estate (including the likely residual income stream), does the value exceed his debts and as a result of the valuation how much will his estate owe in federal estate taxes (45%)?
- Since it appears he did not have a living trust, most of his assets (including the Neverland Ranch) will be subject to the probate process in California. This will likely cause his estate to incur hundreds of thousands if not millions of dollars in probate attorneys fees. The probate process will likely drag on for years.
These issues while magnified by the amount of money involved and the notoriety of the person who died, are still the same issues faced by a typical Orange County resident who passes on with a home and children.