Alan Thicke's family goes to war over late actor's estate

You don't need to be rich and famous, or have children from prior marriages, for your estate plan to run into trouble. But it sure does help. Now, the late Alan Thicke joins the roster of deceased celebrities whose families have gone to the trenches over money and control. 


Best known for his role on the sitcom Growing Pains, Thicke died suddenly in December 2016 from a ruptured aorta. He was 69. He left behind two grown sons from a prior marriage, Robin and Brennan; another son from a different marriage, Carter; and his wife of twelve years, Tanya Callau, with whom he lived on his Carpinteria, California ranch. 


To his credit, Thicke did prepare an estate plan. He had a revocable trust, written in 1988 and modified several times prior to his death, most recently in 2016. According to the trust, his three sons were to inherit the ranch, most of his personal effects, and over half of the rest of his estate. Callau would get the furnishings from the ranch, Thicke’s pensions and union death benefits, half a million dollars in life insurance, and anything else in the estate not specifically earmarked for the children. Sons Brennan and Robin were named co-trustees of the trust. 


In addition, there was a prenuptial agreement, signed by Callau prior to her 2005 marriage to Thicke. It gave her the right to continue residing on the ranch, so long as she maintained the property and paid all of its expenses. It is the apparent disconnect between the terms of the prenuptial and the trust that is fueling the family's competing claims.


Last month, Brennan and Robin filed a petition in Los Angeles County Superior Court, alleging that Callau is demanding a larger inheritance than their father's estate plan provides. Specifically, Callau is contesting the legal validity of the prenuptial agreement, which she says does not clearly distinguish between Thicke's personal property and community property (California is a community property state). If the prenuptial does not stand up to legal scrutiny, it could give Callau significant community property rights to the assets in the trust, and would therefore entitle her to far more than she is currently inheriting. 

Callau's attorney has called the prenuptial a "mess" and claims Brennan and Robin have turned down Callau's offer to take the matter to mediation. The sons' attorney refutes those points and has said: “The fact of the matter is that Alan had a career, wealth and children well before he ever met her. It was important to him to make sure that was protected and that his children were taken care of after his passing. She agreed to that. She signed it, understood it and now she’s refusing to honor it." According to some reports, the sons' petition is simply retaliation against their stepmother because she will not permit them to convert the ranch to a marijuana farm. 


You may not be a celebrity, but if you have a family, your planning must begin with an examination of your family dynamics. Our job as your "counselors at law" is to help you identify your family's strengths and weakness. Who is best suited to make certain decisions? Who is likely to create issues in the wake of your death or disability? Who gets along? Who doesn't? Who gets along well now, but might not if you are out of the picture? Only after answering these questions can we build a solid estate plan for you that will ensure your wishes are honored, and your family protected.

If You Knew You Had a Good Chance of Developing Alzheimer's, What Would You Do? What Should You Do?

Suppose you could find out if you have a greater-than-average chance of developing Alzheimer's Disease. Would you want to know? What would you do with this information?


One of the genetic secrets revealed in recent years is the relationship between the APOe4 gene and Alzheimer's Disease. About 40% of those who develop the late onset form of the disease (the most common form) carry this gene variant. While inheriting the APOe4 gene increases susceptibility, it by no means seals the deal; environmental factors such as diet and lifestyle also seem to play a part in determining who will or won't develop the disease.

Recently, the company 23 and Me began offering APOe4 testing. All you need to do is swab your cheek and send off a saliva sample. The company provides you with the results, which it promises will remain confidential and never be released to third parties. 


But just because you can know if you carry the gene, would you want to know? Positive results could have negative psychological ramifications. It might be a Pandora's box for someone with a low threshold for worry, creating years of anxiety over something that may never happen. Even if the results spur someone to adopt a healthier lifestyle, adhering to the regimen will not necessarily prevent the disease from manifesting.


On the other hand, someone who tests positive gets an opportunity to make important family, financial and legal plans that he/she might not otherwise make. Alzheimer's Disease is a staggeringly expensive condition. Families who don't prepare can be blindsided by the expense, which often includes long-term nursing care. Medicare does not pay for that type of care. A person who knows he/she has a heightened risk of developing Alzheimer's can take proactive steps to protect family and assets, such as Medicaid planning or purchasing long-term care insurance. 


The insurance industry is concerned about the possibility of more and more people being tested, learning they carry the gene, then purchasing long-term care insurance. A 2005 study, "Genetic Testing for Alzheimer's Disease and Its Impact on Insurance Purchasing Behavior," published in the journal Health Affairs, drew on clinical trials of 1,000 people. The study revealed - unsurprisingly - that those who have learned they carry the APOe4 gene are five times more likely than the average person to apply for long-term care insurance. If the now-readily available test becomes widely used, it could create a pool of insureds more likely to collect on their policies in the future. This would skew actuarial projections and put the long-term care insurance industry in financial jeopardy. Robert Cook-Deegan, one of the researchers who participated in the study, likens testing positive for APOe4 and then buying long-term care insurance to "...taking out a million-dollar life insurance policy the day before you know that you're going to die," adding, "The stock market would call it trading on insider information."


The study also found that applicants felt no obligation to divulge the reason they suddenly wanted a policy. While long-term care insurers are exempt from the 2008 Genetic Information Nondiscrimination Act and have the legal right to ask applicants if they have had genetic testing and to request the results, at this point most insurers do not pursue the matter. That could change if the industry finds itself under pressure. 


Still interested in getting tested for APOe4? You might want to hold off and follow the advice of Jill Goldman, genetic counselor at Columbia University's Taub Institute: Purchase long-term care insurance before you go for testing, because what you know might eventually be used against you.