American legend Dick Clark died at the age of 82 this week. Clark suffered a heart attack following a medical procedure on April 18^th. It would be difficult to find anyone over the age of 30 who doesn’t identify with Clark for one reason or another. The world mourns his loss. According to reports, the workaholic left behind a fortune that likely reaches into the hundreds of millions of dollars.

Clark is known to the over 40 set as the host of American Bandstand which ran from 1957 to 1987 and has the distinction of being the longest running variety show in American history. After American Bandstand went off the air, Clark went on to become the host the popular game show Pyramid as well as becoming the host of Dick Clark’s New Year’s Rockin’n Eve. As the voice of New Year’s Eve, Clark’s voice became synonymous with the ball dropping in Times Square at midnight which rang in the new year. As a tribute to Clark, early reports are that confetti made from messages to Clark from adoring fans will be spread throughout Times Square this New Year’s Eve as the ball drops to commemorate the icon.

Known by many as a workaholic, people say that work was Clark’s most favorite hobby. As a result, early estimates are that Clark’s fortune will easily top $100 million. Clark serves as an excellent example that life does not have to stop at 65 — in fact, some of the best years of your life can happen after you enter your golden years!

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

Estate planning is important for anyone, regardless of the size of your estate. For the rich and famous, estate planning takes on a heightened importance because of the size of the estate and the fact that the estate of many famous people continues to earn money long after the death of the decedent. Despite all of this, a surprising number of the rich and famous actually don’t sit down and create an estate plan, often leaving a legal mess when they die. Consider the following examples:

Steve McNair: The NFL star was shot and killed by an alleged girlfriend at the age of 36. McNair left behind a family and a fortune, but no Will.

Sonny Bono: Best known early on as half of “Sonny and Cher”, Bono later went on to a life of politics before dying in a tragic skiing accident in 1998. Bono did not leave behind a Will. Shortly after his death, his wife and mother became embroiled in a legal battle over Bono’s estate.

Stieg Larsson: Author of The Girl with the Dragon Tattoo died an untimely death in 2004. Larson left behind no Will which left his partner of 32 years with nothing under the intestate laws of Sweden.

Abraham Lincoln: Yes, even the 16^th President of the United States, despite being a lawyer himself, died intestate.

Jimi Hendrix: Arguably, the greatest guitar player of all time died at the age of 27 — seven years shy of the number of years it took to settle his estate after he died without leaving behind a Will!

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

People who have a sizable estate often create charitable foundations as part of their estate plan. Legendary artist Ray Charles is one of those people. Prior to his death in 2004, Charles created a foundation dedicated to the support of youth education programs and the support of research and education for the hearing impaired. The foundation has recently filed a lawsuit against Charles’s children alleging that the children violated agreements made with their father prior to his death.

Reports are that Charles entered into agreements with each of his 12 adult children approximately two years prior to his death as part of his estate plan. The agreements required the children to relinquish any future rights to his estate in return for a $500,000 trust created for each child by Charles. The lawsuit stems from allegations that the children recently sent copyright termination notices to various music publishers claiming to be the owners of 51 of Ray Charles‘ most famous songs, including “I Got a Woman“ and “What’d I Say.”  The foundation claims to be the owner of the songs which would mean the children have no legal right to send the notices.

The foundation depends on the income stream produced by royalties to Charles’s songs. By clouding the issue of ownership of the songs, the children have diminished future income from the songs according to the foundation.

A court will now have to decide who the rightful owner is based on estate documents filed with the court. The story illustrates the importance, for all of us, of creating a thorough estate plan  that will prevent, or at least strongly discourage, a challenge to your estate at some point in time.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

Although it is advisable to sit down and talk to someone before you appoint them as executor of your Least Will and Testament, not everyone follows that advise. Because of this, you could receive the news one day that you have been appointed as executor of the estate of someone who has recently died. So, what do you do now?

Most importantly, don’t panic. Being nominated does not obligate you to serve in the position. If you don’t feel that you can serve in the position for any reason, simply inform the family, or loved ones, that you have to decline the nomination.

If you make the decision to accept the nomination, then there are a few important steps to take immediately after making that decision. The estate assets need to be secured to the best of your ability. At some point, a thorough inventory and valuation will need to be completed; however, for now you need to make sure they are secured.

Opening the probate process also needs to be accomplished by filing a petition for probate with the appropriate court. The original Will should also be filed with the petition showing your nomination as executor.

Professional help in the form of an experienced estate planning attorney should also be retained. For larger, or more complicated estates, you may also need the help of other professionals along the way. Typically, the reasonable costs of professional assistance will be paid for out of the decedent’s estate assets.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

For better or worse, divorce has become a common occurrence in America with over half of all first marriages and close to 60 percent of all second marriages ending in divorce. While a divorce can have a devastating emotional impact on the spouses and children involved in the divorce, it can also have a significant negative financial impact as well. While many people concentrate on the immediate financial impact of a divorce, such as who will get the marital residence and how much child support will be ordered, people often neglect to consider the more long-term estate planning ramifications of a divorce. If you are in the process of a divorce, or recently divorced, consider the following changes that may need to be made to your estate plan:

• Replacing your ex-spouse as the beneficiary of ERISA plans, investment plans, pension plans, life insurance policies or pay on death accounts. Don’t make the mistake of counting on state laws to automatically disinherit your ex-spouse as a result of the divorce.
• Removal of your ex-spouse as a beneficiary in your Last Will and Testament and Trust.
• Appointing a guardian in your Will for your minor children.
• Creation of a trust and appointment of someone in whom you have both trust and confidence in their financial abilities as trustee. (You can direct your estate assets that are meant for your children into the trust so they are not managed by your ex-spouse.)
• Execution of a new  advance health care directive.
• Revocation of any existing powers of attorney that make your ex-spouse your agent.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

Charitable giving is frequently an important aspect of an estate plan. If you have a cause that is important to you, you may wish to establish a living trust or a testamentary trust that will allow your philanthropy to continue even after your death. Along with providing a legal mechanism for your charitable giving, a charitable trust may also offer both tax and probate avoidance benefits. If you wish to combine your charitable beneficiary with a non-charitable beneficiary, you may wish to consider using either a charitable lead trust or a charitable remainder trust.

Charitable lead trust: A charitable lead trust provides payments to a charity or charities for a specific period of time after which the assets that remain in the trust pass to a non-charitable beneficiary. Often, the lead interest (portion that is paid out to the charity) will qualify for a charitable tax deduction if the trust is a living trust. An example of a lead trust is as follows: You fund a trust with $50,000. The trust terms call for 5% of the trust assets to be paid out to a charity each year for 15 years with the remainder interest paid to your children upon termination of the 15 year term.

Charitable remainder trust: A charitable remainder trust works in reverse of how a charitable lead trust operates. Both a charitable and non-charitable beneficiary are designated. The non-charitable beneficiary receives a portion or percentage of the trust for a specified period of time after which the remainder interest passes to the charity. In the above example, assume that the trust terms call for $2,000 to be paid to your son each year for ten years or for his life.  After that period expires, the remaining trust assets will then pass to the named charity.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

Whether you are a potential beneficiary, heir, or even executor of an estate for someone who has recently died, you may have numerous questions surrounding the probate process. One of the most commonly asked questions is “what happens to the decedent’s property?” Although each estate is unique, and the manner in which estate property is distributed depends on a variety of factors, there are some common ways in which estate property is handled after someone’s death.

Some estate assets may actually be able to avoid the probate process altogether. An example of this is an account that is held as “pay on death”. As the name implies, upon the death of the primary account holder, the assets are transferred to a beneficiary. The proceeds of a life insurance policy are another example of an estate asset that can transfer immediately after death without probate.

Specific bequests made in a Last Will and Testament are another manner in which estate assets are handled. A gift of “$25,000 to my nephew”, for example, or “my coin collection to my son” will be honored when possible; however, the assets will not be transferred until the completion of the probate process.

Anything that is not transferred pursuant to a specific bequest will then be liquidated. The proceeds of the sale of these assets are then distributed to the beneficiaries according to the terms of the Will. If no Will was left behind, the proceeds of the sale of the estate assets will be given to the heirs of the decedent under the state’s intestate succession laws.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

The bond formed between a human and a dog is legendary, as is the bond formed between law enforcement partners or soldiers who serve in combat together. Imagine then, the bond formed between a soldier and her service dog? That very bond was strong enough to make news headlines recently when the two were finally given approval to be reunited.

Marine Cpl. Megan Leavey and her canine partner, Sgt. Max, completed over 100 missions together during two six-month tours in Iraq. In 2007, the pair returned home only to be separated upon return. Leavey soon found that she was not willing to accept the separation and began her five year long battle to adopt Max. Gaining approval to adopt a military service animal is not an easy task. By the time all was said and done, Leavey had managed to obtain over 21,000 signatures on an online petition in support of the adoption as well as the support of U.S. Senator Schumer. Her efforts paid off.   Just last week Leavey received news that her adoption petition was approved — she and Max are to be reunited soon.

A fight such as Leavey’s is not necessary in order to feel a deep bond with a family pet. If you have such a bond with a pet, make sure that you provide for him or her in your estate plan. A pet trust, which operates in much the same way as any other trust, is one way to continue to provide for your pet after your death.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

The advent of the Internet made locating and accessing information significantly easier than it was in the past. While overall this ease of access is a benefit to everyone, it can also have negative consequences. Along with the vast array of other documents that are now easily accessible on the Internet are a variety of legal forms, including many do-it-yourself Last Will and Testament kits. Although it may seem like a simple way to save money by using one of these kits instead of consulting with an attorney, it could result in your Will being declared invalid or your beneficiaries being strapped with a huge tax bill.

Of all the documents that you create and execute during your lifetime, your Last Will and Testament may be the most important. Your Will decides who receives your estate assets as well as your personal, sentimental, belongings. It also dictates who will administer your estate and who you will nominate as guardian for any minor children you have. Failure to create and execute your Will perfectly can result in a court declaring it to be invalid or can cost your beneficiaries thousands of dollars in taxes.

Because state laws govern the creation, execution and interpretation of Wills and estates, there can be significant differences among the states. In addition, both state and federal tax laws change on a regular basis, yet they can impact the amount of taxes levied against your estate to the tune of thousands of dollars. Using a do-it-yourself Will kit can cause you to rely on outdated, inaccurate or incomplete instructions and information.  To do so is very risky.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.

The world’s response to the death of Whitney Houston last month was one of shock and sadness for a life cut short. Found dead in her Beverly Hills hotel room, 48 year old Houston appeared to be on the verge of a comeback after battling personal demons for the last decade. Sadly, reports of trouble brewing in Houston’s estate began to surface as soon as the funeral. With the news that Houston left behind not only a Last Will and Testament but a trust as well, the impending trouble seems to have been avoided.

Whitney Houston was the golden girl of song during the 90s; however, by the turn of the century her personal life seemed to be plagued with problems as a result of her marriage to singer Bobby Brown and her ongoing battle with drug and alcohol addiction. After divorcing Brown in 2007, Houston appeared to be on the verge of a career comeback when she died. Houston left behind only one child from her marriage to Brown — 18 year old Bobbi Kristina. Given the contentious relationship between Houston and Brown, and a previous attempt by him to get at some of Houston’s money after the divorce, Houston’s family was concerned that Brown might try to gain control of Houston’s estate through their daughter. While Bobbi Kristina is old enough to inherit outright, she reportedly battles the same drug and alcohol demons that her mother battled, making her susceptible to a claim that she is in need of a conservator.

With the news that Houston left behind a trust for Bobbi Kristina, concerns that Brown could try and assert control over the estate through appointment as Bobbi’s conservator have been put to rest. By creating a trust, Houston was able to hand pick the trustee who will control the trust assets until Bobbi Kristina is old enough to do so herself.

John Rogers Burk, A Law Corporation is a member of the American Academy of Estate Planning Attorneys.