Robin Williams' family tangles over his estate

Millions of dollars. Many marriages. Several children from those marriages. Mix in a dash of estate plan ambiguity, stir well and voila: The perfect recipe for an estate battle. It occurs in middle class families after the death of a loved one. But when it happens in the family of the rich and famous, headlines ensue. And that is just what is happening now in the family of the late Robin Williams.

The comedic genius and award-winning actor died by his own hand in August 2014. Family members are now butting heads over his assets, and in the process making public the details of his trust that otherwise would have remained private.

Williams is survived by three children from two prior marriages, and his third wife, Susan Schneider Williams, whom he married in 2011. She reportedly signed a prenuptial, but its provisions are unknown. Williams' will refers to a trust he set up that gives his three children the bulk of his estate, including most of his personal effects and memorabilia from his long entertainment career. Those items include bicycles, fossils, jewelry, photos, sports memorabilia, graphic novels, action figures, statuettes for his Oscar, Golden Globe and Emmy wins, and his famous "Mork and Mindy" suspenders. The trust also calls for his widow to continue to reside in the Tiburon, California home they shared. The actor owned a second, larger home in Napa, California, which is to go to the children. 

In December Schneider-Williams petitioned the court, asking for clarification on just what personal effects and memorabilia she was entitled to. She alleges that the trustee for the children's trust entered her Tiburon home just days after Williams' death and removed many items that were not intended for the children. She contends that since Williams wanted her to continue residing in the home, its contents should pass to her. Only items related to Williams' career in entertainment, and those located in the Napa home, should go to the children, she argues.

The children fired back in January. They claim that Schneider-Williams is acting against their father's wishes "by challenging the plans he so carefully made for his estate,” and attempting to "prevent them from receiving what their father wanted them to receive." The children contend that their father placed no geographical restrictions on the personal items he wanted to pass to them.

The two sides also differ on how to identify the items that are specifically related to Williams' career. While the suspenders that were part of his "Mork and Mindy" costume are indisputably related to his career, what about his collection of action figures and other toys? Did those items spark his imagination and contribute to his success as a performer - and might it be reasonably argued that they are related to his career? 

We do not know how the conflict will be resolved, or when. My guess is that we will hear much more about it in the months, and possibly even the years to come. The conflict serves as a valuable reminder that your estate planning documents must express your intentions with unassailable precision. Ambiguity may be tolerable when you can clarify yourself, but it has no place in your estate plan, which must speak for you when you are gone. Any provision that is open to interpretation might just be the match that ignites a family feud.

Sassoon's final cut: late hairstylist cut son from will

In my Feb. 18 post I noted that Florida law does not require you to leave anything to an adult child in your will. From time to time I will meet with a client who wishes to disinherit a child. It is a decision generally accompanied by considerable anguish, often following an extended period of estrangement and discord. This is the decision that was apparently made by Vidal Sassoon, the avante-garde hairstylist and business mogul. Sassoon died of leukemia in California last May. The Daily Mail now reports that Sassoon's will cuts out David Sassoon, one of his three children. The will was written two months before Sassoon's May 2012 death. David Sassoon, 41, will get none of his father's reported $152 million fortune. Sassoon had noted in his memoir that David was a "mischievous" child, but the details of their relationship are not known.  Sassoon has two other children.

Will there be an estate challenge? On what basis? How will the disinheritance impact the relationship of David and his two siblings? I suspect we have not heard the last of this story.

If you are considering disinheriting an adult child or leaving him/her a significantly lesser amount than the child likely feels entitled to, I urge you to  consult an experienced estate planning attorney and think, re-think and think again. If you decide to disinherit, your attorney will advise you on the best way to proceed. Just as there are smarter methods to pass assets to your heirs, so there are smarter ways to cut out an heir. For example, contrary to popular belief, it is not advisable to leave $1 to the child you wish to disinherit; that can open the door wider to a possible estate challenge and delay the administration and closure of your estate.

Many people mistakenly think that adding an in terrorem clause to their will or trust will defuse potential estate challenges if a child is disgruntled with the size of his inheritance or cut out entirely. The in terrorem clause states that the person challenging the estate loses the right to receive anything that he would have otherwise received under the instrument. However, Florida does not recognize the validity of the in terrorem clause.

If you need help with these matters, contact The Karp Law Firm lawyers for assistance.  

No Florida Will? Does Florida Have a Plan For You!

It's said the only certainties are death and taxes. Most of us give taxes the necessary attention (especially this time of year). But we tend to stick our heads in the sand and dodge making plans for that other certainy. A March 2011 Harris poll shows that 57% of Americans over the age of 18 don't have a will! But it's not just the youngsters who are in denial. Among Baby Boomers ages 45 - 64, 44% don't have a will. And 22% of Americans over the age of 65 do not have one!

I see this all the time in my Florida elder law-estate planning practice. People in their seventies, sometimes their eighties, show up in my office after years of procrastination. They have decided to get moving (or because they just can't put up with their children's nagging any longer).  But as the poll shows, there are many more who will never set foot in a lawyer's office to complete this important planning.

There's no doubt that pondering one's mortality is not on the list of life's greatest pleasures. Going to the dentist isn't, either, but the process is generally not anywhere as uncomfortable as you imagine, and the outcome is fabulous: no dental pain. So it is with your estate planning. Once you get over the hump, the process isn't as uncomfortable as you'd feared, and the ultimate reward - peace of mind for you and your loved ones - is wonderful.

Now, what happens if you don't have a properly drafted, valid  Florida will or other estate planning device in place - i.e., die intestate? When you pass away, any asset that you own that does not have a beneficiary designation is going to be disposed of by, you guessed it, the State of Florida. Florida Statute 732.101 states "Any part of the estate of a decedent not effectively disposed of by will passes to the decedent’s heirs as prescribed in the following sections of this code." I won't go into those sections here, but you can read for yourself the Florida estate plan that the state government has in mind for you - whether you like it or not.

So even the people who don't have a Will, have one. It's just the one Florida has in mind for you. To control your own destiny, get your head out of the sand, and consult your Florida estate planning lawyer. Really, it won't hurt. Promise.

Another Madoff Mistake: An Out-of-Date Estate Plan

Looks like Bernie Madoff's youngest son Mark didn't do what we always recommend our estate planning clients do:  Review his estate plan whenever there's a substantial change in financial or family circumstances. And what changes there were in the Madoff family circumstances these past few years. We've just now learned that Mark Madoff, who took his own life late last year, had drafted a Will  in 2007 naming his father and brother Andrew as co-Personal Representatives (or in New York speak, "executors"). Obviously, with the father in federal prison for the rest of his life, he can't serve. That leaves Andrew in charge. Granted, few will feel much sympathy for the Madoff clan's estate planning woes, but still, there are lessons to be learned. Read more about Mark Madoff's estate plan here. And below, a list of just some of the circumstances that should trigger your own estate plan review:

1. Anyone you have named as a fiduciary (Personal Representative, Agent under Durable Power of Attorney, Trustee, etc.) has passed away or is otherwise unwilling to serve or incapable of serving. For example, I have examined estate plans in which the person appointed the spouse as Personal Representative years ago, and the spouse has been in a nursing home with advanced dementia for years.
2. The beneficiaries named in your plan are deceased.
3. There have been births and adoptions in your family.
4. Your children or grandchildren have achieved the age of 18.
5. You or your children have gotten married, divorced, or remarried.
6. There has been a substantial change in the size of your estate.
7. There has been a substantial change in your health or your spouse's health. 
8. You move to another state. Laws regarding estate planning documents, taxes, etc., vary among states.

Even if none of the above apply to you, we recommend that you have your estate plan reviewed every three years.  The passage of time has a way of changing things, and sometimes those changes can be nearly imperceptible to us. At The Karp Law Firm, we offer free three-year reviews to all our clients.