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Decedent’s Estate Held Not Bound By Arbitration Agreement

The Alabama Supreme Court has ruled that the daughter of a deceased dementia patient does not have to submit to binding arbitration with a nursing and rehabilitation center because she did not have the authority to sign the agreement, according to Legal NewsLine in “Alabama Supreme Court: Daughter in wrongful death case didn’t have authority to sign arbitration agreement,”

The woman, Rhonda Stephan, signed an arbitration agreement when her father was admitted to a nursing home (the Millennium Nursing and Rehab center). This is something that many family members do since it is part of many nursing home’s admissions requirements.  However, the Supreme Court said that the woman did not have the power or authority to do so because she signed as a family member and not as a Power of Attorney.  Because of this, when the woman became the personal representative of her father’s estate, she was not bound by the arbitration clause.

By way of background, Stephan, on behalf of her father’s estate, sued the Millennium Nursing and Rehab center for wrongful death following her father’s death in 2015. The facility moved for the enforcement of the arbitration agreement and the Madison Circuit Court agreed when it granted Millennium’s motion to compel arbitration.  Subsequently, the State Supreme Court found that Stephan’s father had been too incapacitated to enter into any legally binding contract when he was admitted, and that Stephan had signed the agreement as a family member, not as a power of attorney.

This case presents an interesting legal issue - if a family member has power of attorney, which is frequently the case, and they sign all the admission papers to have their family member admitted to a care facility, in what capacity are they signing those papers?

If you are serving as someone’s power of attorney, you should consult with an experienced estate planning attorney regarding the responsibilities and liabilities of your role.

Reference: Legal NewsLine (Oct. 30, 2018) “Alabama Supreme Court: Daughter in wrongful death case didn’t have authority to sign arbitration agreement”

Michael Jackson Estate Files Another Lawsuit

The Jackson Estate has filed many lawsuits. This time it is suing the Walt Disney Company over a documentary.

The Walt Disney Company is being sued by the Michael Jackson Estate over a documentary that includes footage of his two children, plus short clips of two of his songs. Disney claims it did not need permission because it is a documentary, according to TMZ in "Michael Jackson Estate Sues The Walt Disney Co. You've Got Balls For Exploiting MJ's Kids!!"

The estate does have a duty to protect any copyrights entrusted to it, but is has filed many lawsuits over the years and remains in litigation. As a general rule, if someone were to make a movie and use an entire Michael Jackson song in it, then the estate would need to file a lawsuit if the song had been used without permission. However, in this case the estate might be a little overzealous.

Copyright does allow for the use of material without permission if that use falls under the fair use doctrine.  Doctrine normally does allow for short clips of material to be used and more material can be used if it is done for educational purposes.

Reference: TMZ (May 30, 2018) "Michael Jackson Estate Sues The Walt Disney Co. You've Got Balls For Exploiting MJ's Kids!!"

U.S. and Canada See Increase in Will Challenges

As the size of estates increase, so do the number of Will challenges. 

Courts in both the U.S. and Canada find themselves in challenges brought about by people who believe they did not receive their fair share of an estate, according to The Globe and Mail in "Left out of the will? Here are your options."

The options for challenging a Will in Canada are very similar to those in the U.S.  Essentially, there needs to be a good reason why the court should disregard the Will and distribute the estate differently.  One of the more common reasons is undue influence.  Generally speaking, undue influence is an allegation that someone has inappropriately influenced another who has diminished capacity of some sort to create a Will for the benefit of the influencer.  The elements and burdens of proof regarding undue influence vary from jurisdiction to jurisdiction.

Not just anyone can challenge a Will.  Only people who have an interest of some sort in the estate can make the challenge.

If you find yourself on either side of a Will challenge, an experienced probate litigation attorney can advise you of your options.

Reference: The Globe and Mail (Feb. 26, 2018) "Left out of the will? Here are your options."

Probate Litigation Over James Brown's Estate Continues for 11 Years

11 years after his death, the singer’s estate remains unsettled.

Soul singer James Brown passed away in 2006, leaving millions to poor children in Georgia and South Carolina.  However, none of the money has been given to the children because the estate is bogged down in numerous lawsuits, according to The New York Times in "Why Is James Brown's Estate Still Unsettled? Ask the Lawyers."

The main source of the dispute appears to be a family feud with Brown's children and grandchildren on the one side and his widow, who is the estate administrator, on the other side.  And numerous lawsuits have been filed.

In perhaps the biggest lawsuit, the children and grandchildren allege that the widow has cut inappropriate side deals for the copyrights to Brown's music. These copyrights are where the bulk of the estate's value is found. They also allege in another lawsuit that the widow was not even married to Brown because she was allegedly also married to another man.

As a result, the poor children in Georgia and South Carolina remain without any money from the estate, and it is unlikely that the dispute will be settled soon.

If you are either the beneficiary of an estate, or an estate administrator/executor, you should consult with an experienced estate administration attorney and/or probate litigator in order to protect your interests.

Reference: New York Times (Feb. 4, 2018) "Why Is James Brown's Estate Still Unsettled? Ask the Lawyers."

The Number One Reason for Estate Litigation

Stepmothers take one of the top spots in causing wars over estates.  However,  they may not be at fault.

Stepmothers are present in many of the battles launched over estate battles, according to Forbes in "Stepmothers: The Cause Of So Many Estate Fights."

But the real problem is not really stepmothers. When family members do not get along for other reasons, they often find themselves at odds over the estate of a deceased loved one. It just so happens that one of the primary familial relationships gone awry is that of stepmothers and their stepchildren.

What this means is that people who have entered a new marriage with children from a previous relationship need to understand the family dynamic and how it could have an impact on the administration of their estates.

An experienced estate planning attorney can advise you in creating an estate plan that fits your unique circumstances, including a blended family.

Reference: Forbes (Jan. 23, 2018) "Stepmothers: The Cause Of So Many Estate Fights."

Probate Dispute Settled over Arthur Miller's Archives

Two institutions were fighting over the rights to Arthur Miller's journals, notes and letters.

After a heated dispute, the Ransom Center matched Yale University’s $2.7 million offer to archive Arthur Miller’s work, according to The New York Times in "Inside the Battle for Arthur Miller's Archive."

Miller, who died in 2003, had a close relationship with the Harry Ransom Center at the University of Texas at Austin. On a couple of different occasions, Miller sent the center several boxes of his work to the Ransom Center for safe-keeping.  But the dispute appears to have stemmed from the fact that Miller never formally left his archive to the Ransom Center.

No estate planning document was created making his preference legally binding.  Therefore, his estate fulfilled its duty to maximize the amount of money it could get for the works.  

The educational institutions were willing to pay for the prestige of housing the archives of the celebrated playwright.

Reference: New York Times (Jan. 9, 2018) "Inside the Battle for Arthur Miller's Archive."

Family Dynamics Impact Estate Planning

What type of planning should be done if family members do not get along?

The issue of blended families, and dealing with lack of trust among family members, while engaging in estate planning was recently discussed in a Market Watch advice column titled "My mother-in-law is deceitful -- can we stop her from stealing my wife's inheritance?"

In this particular case, a man and his wife believed that his mother-in-law is evil and deceitful. They are convinced she will hide assets and fraudulently transfer accounts to herself as soon as the wife's father passes away.

The father will not say much about it, other than stating that his children will be taken care of. They wonder what they can do to prevent a problem from arising and whether they should hire an attorney.

As the advice columnist points out, there is not much that can be done before the father passes away. Hiring an attorney too early might just make the problem worse - especially if it angers the father.  They might also be viewing the mother-in-law incorrectly and she might have no plans to steal anyone's inheritance.   The only option may be to deal with the issues after the father passes away.  But advanced preparation could never hurt.

If you have concerns about a deceitful or dishonest family member, you should consult with an experienced estate administration attorney.

Reference: Market Watch (Jan. 8, 2018) "My mother-in-law is deceitful -- can we stop her from stealing my wife's inheritance?"

What are the Responsibilities of a Life Tenant?

The responsibilities of maintaining real estate by a life tenant can develop into big problems.

Giving a person life rights in a piece of real estate can be a good way to avoid some family conflicts and make sure that property stays in the family.  However, it can also create conflicts, according to the Edinburg Review in "Designate rights and duties of life tenant in will's bequest."

The problem is that the life tenant might have different ideas about how the property should be maintained than the people who will inherit it after their death.  For example, the ultimate inheritors might object if the life tenant wants to completely redo the interior of a home.  Unless the parties can resolve the conflict, they could end up in a legal battle.

For this reason, it may be a good idea to include provisions regarding the life tenant’s responsibilities concerning maintenance and any limitations on how the life tenant can use the property.

An experienced estate planning attorney can advise you in creating an estate plan that fits your unique circumstances, including the possible granting of life rights in real estate.

Reference: Edinburg Review (Jan. 8, 2018) "Designate rights and duties of life tenant in will's bequest."

What Is Undue Influence When Preparing A Will In New Jersey?

 

"Undue influence" can happen when someone who benefits from a Will encourages the Testator to create the Will for the influencer's benefit.  A common example is one child convincing his parents to leave him more in their Wills than his siblings.  The siblings will be upset and may decide to challenge the Will.

In New Jersey, undue influence is exerted when a testator is coerced to do that which he would not have done if left to himself.  The influence must be such that it destroys the Testator's free agency and causes him to dispose of his property not by his own desires, but instead by the desires of another.

While the challenger has the burden of proving that a Testator was subjected to undue influence, certain circumstances may create a presumption of undue influence and the burden of proof can be shifted to the party claiming that the Will is valid.

Challenging a Will can be a difficult proposition, but certainly not an insurmountable one when the facts and circumstances warrant it.  

You should consult an experienced probate litigation attorney if you believe that a member of your family was subjected to undue influence.

Reference: My Prime Time News (Jan. 18, 2017) "Undue Influence."

Too Many Victims Makes Compensation Difficult in Las Vegas Shooting Case

Las Vegas killer leaves large estate, but fair compensation for the victims will be a challenge.

Despite a hefty estate of $5 million left behind, it will be difficult to compensate the victims of Las Vegas mass shooter Stephen Paddock, according to The New York Times in "The Las Vegas Gunman Was Rich. Will His Wealth Go to the Victims?"

We still do not know why mass murderer Stephen Paddock decided to shoot at Las Vegas concert goers from his hotel window.   Despite the mystery surrounding his motivations, his victims and their families would like to be compensated for his actions.

Paddock's estate is worth approximately $5 million. That money would ordinarily go to his mother since Paddock was not known to have had an estate plan.  However, Paddock's family has indicated they have no interest in his estate.  

However, there are some challenges to making sure that all the money goes to the shooting victims.  The first is that the estate could be rolled into an existing victims' compensation fund that has already raised $22 million.  However, all of the victims might not be eligible for compensation under the fund's rules.  The second challenge is that many victims are filing independent claims and lawsuits to the estate.

If you have a claim against an estate, you should consult with an experienced probate litigation attorney.

Reference: New York Times (Dec. 23, 2017) "The Las Vegas Gunman Was Rich. Will His Wealth Go to the Victims?"