This is the season for wishing all our clients and friends in Crossville and Chattanooga moments of pure joy and memories that make you smile. It is also a time for remembering the greatest Christmas gift of all - Emanuel, God is with us!
While it is an honor to be named as an executor of a will or estate, it can also be a sobering and daunting responsibility. Being an executor (sometimes called a personal representative) requires a high level of organization, foresight, and attention to detail to meet responsibilities and ensure that all beneficiaries receive the assets to which they are entitled. If you’ve found yourself in the position of “overwhelmed executor,” here are some tips to lighten the load.
Get professional help from an experienced attorney.
The caveat to being an executor is that once you accept the responsibility, you also accept the liability if something goes wrong. To protect yourself and make sure you’re crossing all the “i’s” and dotting all the “t’s,” hire an experienced estate planning attorney now. Having a legal professional in your corner not only helps you avoid pitfalls and blind spots, but it will also give you greater peace of mind during the process. In fact, in some states it’s a requirement that an executor be represented by competent legal counsel, so it’s always a good idea to discuss your responsibilities with an attorney before you start taking any actions.
One of the biggest reasons for feeling overwhelmed as an executor is when the details are coming at you from all directions. Proper organization helps you conquer this problem and regain control. We will advise you of what to do when, but in general, you’ll need to gather several pieces of important paperwork to get started. It’s a good idea to create a file or binder so you can keep track of the original estate planning documents, death certificates, bills, financial statements, insurance policies, and contact information of beneficiaries. Bringing all of this information to your first meeting will be a solid start.
Establish lines of communication.
As an executor, you are effectively a liaison between multiple parties related to the estate: namely, the courts, the creditors, the IRS, and the heirs. Create and maintain an up-to-date list of everyone’s contact information. Also, retain records such as copies of correspondence or notes about phone calls you make as executor. Open and honest communication helps keeps the process flowing smoothly and reduces the risk of disputes. It’s worth repeating because it’s so important -- keep records of all communications, so you can always recall what was said to whom.
If you have been appointed as an executor and you are feeling overwhelmed, we can provide skilled counsel and advice to help you through the process. We can also help you draft your own estate plan, so your family can avoid the stress of probate. Give our office a call today at (423) 648-9829 for an appointment. We look forward to hearing from you.
With extreme wealth accumulated, one would assume that celebrities would take steps to protect their estates. But think again: Some of the world’s richest and most famous people enter the pearly gates with no estate plan in place, while others have made estate planning mistakes that tied their fortunes and heirs up for years in court. Let’s take a look at three high-profile celebrity probate disasters and discover what lessons we can learn from them.
Tom Carvel, The Ice Cream Man
As the man who invented soft-serve ice cream and established the first franchise business in America, Tom Carvel had a net worth of up to $200 million when he died in 1990.
He did have a will and accompanying trust that provided for his widow, family members and donations for several charities, but he also named seven executors, all of whom had a financial stake in the game.
The executors began a round of infighting that lasted for more than 7 years and cost millions. In the end, Carvel’s widow passed away before the disputes could be settled and before she inherited.
Lesson learned: “Too many cooks spoil the broth.” Your trustee and executor may have to make tough decisions. Consider naming executors and trustees who have no financial interest in your estate to reduce the risk of favoritism. Also, consider having only a single trustee and executor rather than a committee.
Jimi Hendrix, The Guitarist
Passing away tragically at age 27, rock guitarist Jimi Hendrix left no will.
What he did leave behind was a long line of relatives, music industry bigwigs, and business associates who had an interest in what would become of his estate - including intellectual property that would continue to earn.
An attorney managed the estate for the first two decades after Jimi’s death, after which Jimi’s father Al Hendrix successfully sued for control of the estate.
But when Al attempted to leave the entire estate to his adopted daughter upon his passing, Jimi’s brother, Leon Hendrix, sued, launching a messy probate battle that left no clear winners.
Lesson learned: When you don’t leave a comprehensive estate plan, the conflict can last for generations. Even if you’re not a celebrity, we can put your wishes in writing so they are carried out after your death rather than opening a door to costly conflict.
Prince, The Musical Genius
The court battle waging over Prince’s estate is a probate disaster.
When the 80’s pop icon died in early 2016, he left no estate plan (reportedly due to some previous legal battles that left him with a distrust of legal professionals in general).
It took 2 years before the court named Prince’s 6 siblings as his heirs.
An estate worth more than $200 million has been greatly reduced by payments to the IRS, the state of Minnesota, the court-appointed executor and lawyers.
Lesson learned: Accurate legal documentation protects your legacy. Don’t let a general distrust or a bad experience propagate through the generations and leave your heirs to fight and potentially lose their inheritance.
These celebrity probate disasters serve as stark reminders that no one’s wealth is exempt from the legal trouble that can occur without proper estate planning. As always, we are here to help you protect your family and legacy. Give us a call today at (423) 648-9829 to discuss protecting your assets and taking care of your family.