South Florida Estate Planning Attorney Brian C. Perlin writes about issues relating to Estate Planning, Elder Law, Probate Administration, Wills & Trusts, Florida Medicaid, Special Needs Planning, Long-Term Care Planning, Charitable Giving, and Estate Tax.
A collection of recordings that the hip-hop icon Tupac Shakur made before his death, has been returned to his estate.
It’s part of a settlement of a drawn-out legal struggle, according to TMZ.
In addition, The New York Daily News reports in its October article, “Unreleased Tupac music returned to his estate after drawn-out legal battle,” that Tupac’s estate accused the Entertainment One company in a 2013 lawsuit of keeping a strong grip on his unheard master tracks, and at the same time retaining royalties for some of the rapper’s music.
The lawsuit alleged that Entertainment One breached a contract to pay Tupac’s estate royalties worth seven figures for 2007’s Beginnings: The Lost Tapes. Tupac’s estate also sued for the ownership of the master recordings for all of the artist’s unreleased music.
Tupac’s unreleased recordings will now be returned to his estate, while a six-figure payment will be made to cover the royalties.
It’s not certain what will happen to those unreleased tracks, or if there is any plan to release them to the public.
Shakur’s mother, Afeni, had been leading the battle to protect her son’s estate. The litigation over his recordings continued after her death in 2016 at the age of 69, after suffering a heart attack.
Tupac died at the age of 25 in 1996 in an unsolved drive-by shooting in Las Vegas, Nevada.
Death Row Records originally had the rights to Tupac’s music, but the label sold them to Entertainment One in 2006.
Rolling Stone Mick Jagger Needs Estate Planning for Expected Arrival, in Miami or Not!
When Rolling Stone Mick Jagger isn't on stage later this year, he'll probably be at home changing diapers at age 72. Mick is awaiting the arrival of his eighth child. Although becoming a parent or having a child in older age is the exception and not the norm, experts in financial planning say it's becoming more common.
CNBC’s recent article, “Jagger’s changing diapers at 72. How to manage that,” notes that when people get remarried, they may—lo and behold—have more children.
Jagger isn’t alone in the senior rocker dad club because bandmate Stone Ronnie Wood, 68, and his wife just had twins in May, and Billy Joel at age 66 became a dad last year for the second time.
Becoming a parent later in life brings its own set of unique issues. Preparation is critical if you're going to juggle both day care and retirement.
The first issue to consider is guardianship, especially how you’d like your child to be raised if you pass away or become incapacitated. In this situation, the child's older sibling may be a good choice as guardian.
Next, as far as assets, you should think about creating a trust with certain provisions concerning how and when the money will be disbursed to the child, which can be important for those with multiple children. Parents should protect the minor child first.
To make a fair distribution of the assets and to keep the estate out of probate, consider a living trust, which can hold the assets to put the child through college. Then the estate can distribute assets to the adult children.
In addition, titling your property correctly is another important part of estate planning. Incorrect titling can mean assets falling outside of the trust, entering probate or being distributed in a manner not in accordance with the parent’s wishes.
Insurance raises some important considerations. With a child later in life and no work-based medical coverage, most retiree healthcare plans don’t cover minor children—and neither will Medicare. You’ll need to buy private coverage for your child. If you’re able to buy life insurance in your 60s or 70s, get a 20-year term policy that will protect your child through the age of majority in the event you pass away. If you are already claiming Social Security, your minor child may be able to get a payment of up to 50% of your benefit. The child must be single and under age 18, under 19 if he or she is still in high school, or 18 and over but disabled by a condition that started prior to age 22.
Parents can’t directly deposit their child's Social Security benefits into a 529 college savings plan, but it's common for them to spend the benefits on the child and invest a similar amount of money from their personal funds into a 529.
One piece of good news is that if you’re no longer working and are living off retirement savings, you’ll have a low employment income. If the majority of your savings is in exempted retirement accounts, you may be able to maximize financial aid.
Do you live in South Florida? If you have, or are planning to have, "later in life" children, you may need some assistance navigating the legal and financial complexities that will surely arise. Call me (305-443-3104) right away for peace of mind. I can help!
I am also a Florida Certified Public Accountant (CPA).
Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.
Forbes' article, "Prince and Estate Planning: What We Can Learn from the Late Musician's Financial Picture," reminds us that you don't have to be a millionaire to create an estate plan. Putting even a simple estate plan into place will save your loved ones stress and headaches when you pass away—no matter how large your assets are.
1. Beneficiary Forms. This indicates who gets the assets in your 401(k)s, IRAs, life insurance policies, pensions, and other financial accounts upon your death. These designations take priority over the directives in your will, so keep them up to date.
2. POD and TOD Designation. A payable on death (POD) form typically says who should receive the money in your checking or savings accounts when you pass away. A transfer on death (TOD) form is similar but typically for brokerage accounts. A TOD deed says who takes over the deed to your home after you die.
3. Durable Power of Attorney. This important document designates a person to make health care or financial decisions for you if you become incapacitated or unable to make them for yourself.
4. Living Will. This is also called an Advance Health Care Directive. It details the way in which you want your doctors to treat you should you become unable to communicate those wishes.
5. Will. This outlines how you want your probate assets divided, as well as who should become guardian of any minor children.
6. A Living Trust. This document, like a will, says how you want your property and funds distributed and who will take care of your minor children. It also appoints a trustee to carry out specific wishes for your assets. Unlike a will, assets held in a trust don't have to go through probate. A trust can be used to help manage your assets and property while you're still alive.
By securing the help of a qualified estate planning attorney, you will leave a kinder financial legacy for your loved ones than Prince did for his family.
Do you live in South Florida? Have you been putting off your estate planning, thinking that you have plenty of time to handle things? Prince's untimely death is a stark reminder of how quickly things change, even for the most privileged of us. Call me (305-443-3104) right away for peace of mind. I can help!
I am also a Florida Certified Public Accountant (CPA).
Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.
The death of the musician Prince has started the clock on when the IRS will take a big chunk out of the star's estate. But no one really knows how big that bite will be or the actual size of the pie.
For those involved with Prince's estate, calculating just how big Uncle Sam's bite will be may be a real challenge. Some say it's next to impossible and might also fuel a lengthy feud between the government and the estate, as more than half the estate's value could be forfeited in taxes.
But what is that value?
The Investment News says in "Prince's death sets off estate planning quagmire" that the big immediate issue is placing a value on intangible assets, like the future royalties the artist may earn from a body of work.
Prince's fortune was about $300 million, and the divide between how the IRS and his estate view the present value of future royalties could be extremely significant. The death of a popular artist can mean increased valuation. Experts say that death has an impact on the artist's body of work.
The IRS will say his death will blow the royalties off the charts. However, the estate's attorneys will oppose such a move.
That's why the estate of the late Michael Jackson is currently locked in a court battle with the IRS. The government valued Jackson's name and image upon death at more than $434 million. However, his estate's estimate was a tad bit lower: $2,015.
The IRS has learned its lesson from the case of Elvis Presley's estate. It didn't anticipate the phenomenon of the king's increasingly popular catalog after he died in 1977.
Elvis generated $55 million in 2015 alone, which was second only to Michael Jackson's $115 million, according to Forbes' list of top-earning dead celebrities. Now the IRS is taking this potential revenue stream much more seriously.
And, as a New York Times article indicates, a "trove of Prince's recordings remains unreleased," so the potential value from those works is unknown.
Prince's estate has 15 months to file a federal estate tax return (nine months plus a six-month extension), and the estimated federal estate tax is due at the nine-month date. Note that Prince wasn't married at death, so there's no chance of a spouse taking advantage of the unlimited marital deduction, which would pass the estate to the spouse tax-free.
The federal government assesses a 40% estate tax on estate values over $5.45 million. Minnesota, Prince's state of residence, is one of 20 or so states that also have a state estate tax. The Gopher State's top rate is 16%—that will add up to a 56% tax for Prince's estate total when including the federal rate.
If the IRS says the tax amount paid by the estate was undervalued after getting the tax return, it will propose a valuation increase, which is open to negotiation.
If they can't agree, they go to court.
Do you live in South Florida? Have you been putting off your estate planning, thinking that you have plenty of time to handle things? Prince's untimely death is a stark reminder of how quickly things change, even for the most privileged of us. Call me (305-443-3104) right away for peace of mind. I can help!
I am also a Florida Certified Public Accountant (CPA).
Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.
Stevie Wonder Sued by Lawyer's Widow: From One Bad Contract Into Another?
Stevie Wonder has recently been sued by the widow of his former attorney, who claims that the musician owes her millions in unpaid royalties. However, Wonder claims that he never knew about a contractual provision the lawyer put in his contract.
Like many musicians of his era, the young Stevie Wonder initially signed a contract with Motown Records that was heavily in favor of the record company. Wonder hired eccentric attorney Johanan Vigoda, who was able to get Wonder out of the contract with Motown.
Vigoda was also able to secure a lucrative new contract for Wonder that was considered to be one of the best in the industry. Vigoda passed away in 2011.
His widow now claims that Wonder has failed to live up to that contract. A provision in it gives 6% of Wonder’s royalties to Vigoda and to Vigoda’s heirs in perpetuity. The 6% is higher than music industry standards and the perpetuity clause is also irregular.
As everyone knows, Stevie Wonder is blind. He never read the contract himself, but had it read to him. He claims that either the perpetuity provision was not read to him or that he failed to catch it when the contract was being read.
The great irony in this case is that the attorney who got Stevie Wonder out of a bad contract may have turned around and tricked Wonder into another one. That is at least the accusation. As of now, no court date is set in this case, so it may be quite a while before we know what happens.
Have you read the fine print on all of your business contracts & personal documents? If you live in South Florida, I can help! Call me (305-443-3104) to get started.
I am also a Florida Certified Public Accountant (CPA).
Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.
Litigation over the estate of James Brown has been ongoing for nearly a decade. The issue of whether Brown was married at the time of his death has been decided, but the very important issue over how much his estate is worth has yet to be determined.
Have you been following the strange tale that is the James Brown estate?
As you may recall, his estate plan called for his music empire to be put into a charitable trust and used to help needy students. Nevertheless, despite the fact that his will contained a no-contest clause that stated that anyone who contested the will could receive nothing, the will has been the source of ongoing challenges since the musician passed away in 2006.
At one point a settlement was brokered by none other than South Carolina’s Attorney General Henry McMaster. However, that settlement was ultimately rejected by the South Carolina Supreme Court.
The dispute matters greatly because charitable foundations are required to distribute at least 5% of their value to charity every year per IRS rules. Thus, there is a very large discrepancy in the total number of students that would be helped each year by the trust depending upon which valuation of the music empire is ultimately accepted by the courts.
Whether or not you're a rock star, a rock-solid estate plan will put you in the fast lane... to peace of mind. Live in South Florida? I can help with a single phone call! Call me (305-443-3104) to get started.
I am also a Florida Certified Public Accountant (CPA).
Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.
Hendrix Estate Family Feud Resolved For Now - What About YOUR South Florida Estate Plan?
The latest in a long string of battles between Jimi Hendrix's siblings may have been settled, but with proper estate planning it might not have happened at all.
When Jimi Hendrix passed away unexpectedly, he left behind perhaps the greatest rock guitarist legacy of all time. His fame has hardly diminished in the three decades since.
His brother Leon Hendrix and his adopted sister Janie Hendrix have been fighting with each other over that legacy. Both of them have sought to profit from it and have worked at cross-purposes. The latest battle between them was over a trademark infringement lawsuit.
This matter has been settled, as reported recently by the Seattle Times in "Latest Jimi Hendrix family feud resolved in settlement." That the siblings have been able to fight as long as they have could be the result of two distinct estate planning mistakes.
The first was that Jimi Hendrix passed away without having created a will or having done any other form of estate planning. By law his estate, including the rights to his music and image, went to his father James. It is unknown if Jimi would have wanted his father to control everything, or even anything at all.
Second, James Hendrix may have compounded the problem in his will, which left the entire estate to Janie and excluded Leon. While that will has been upheld in court and Janie legally controls Jimi Hendrix's legacy, that has not stopped Leon from attempting to profit off it as well. That is what led to the latest feud between Janie and Leon.
We may never know whether the feuding could have been avoided had either Jimi Hendrix had a will or James Hendrix had a will that more equitably divided the estate. It certainly would not have hurt the situation.
You may not be a rock star, but just the same, contact an estate planning attorney to help you avoid any family drama after you pass.
Live in South Florida? I can help! A single phone call (305-443-3104) can put you well on the way to greater peace of mind for you and your loved ones.
I am also a Florida Certified Public Accountant (CPA).
Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.
"Empire" is based on fictitious music company called Empire Enterprises. Lead character Lucious Lyon (played by Oscar-nominated actor Terrence Howard) is racing to name a successor for his company after learning he has months to live due to an ALS diagnosis. His sons Jamal, Hakeem, and Andre duke it out to see who will become the new head of the company. Meanwhile, Lucious’s ex-wife Cookie (played by actress Taraji P. Henson) fights to keep the brothers from destroying their father’s legacy.
The Cheat Sheet in a recent article, titled “Top 4 Financial Lessons to Take from Fox’s ‘Empire’,” gives us some financial lessons from the hit TV show.
Always take the money. When Jamal rebuffs Lucious’s attempt to offer him money for living expenses, Lucious says: “You’re disobeying the very first rule of music, son. Always take the money.” For those of us not in the record biz, we should take advantage of our employer’s retirement plan match program. The article says that only about 77% of employees contribute enough to receive a match, according to a recent survey. Contribute up to the amount required by your employer in order to receive the match. Once fully vested, all of the matching funds are yours. Always take your money.
Watch your assets when going into business with a significant other. Lucious has a very complicated love triangle where he’s in business with both his ex-wife and his fiancée. Cookie helped fund the business while they were married. The couple divorced while Cookie was in prison, but upon her release, she demands that Lucious make her co-owner of the company or she will tell everyone that the cash she contributed was actually drug money. At the other side of the triangle is his fiancée, who after a lover’s quarrel, attempts to destroy Empire Enterprises by stealing its big artists and telling them to go work with a competitor. The article reminds us that it’s important to protect financial assets when entering marriage. Drafting a prenuptial agreement helps protect assets by outlining each person’s property rights after the wedding ceremony. If you don’t have a prenuptial agreement you can do a postnuptial agreement—drafted after tying the knot.
Set up an estate plan. Lucious has just a few months before he passes away from ALS (Lou Gehrig’s disease), but his estate plans look to be up in the air. The article says that before you pass, make sure your affairs are in order. Start by working with an experienced estate planning attorney to draft your will, along with a health care proxy to help with medical decisions. Also, a financial power of attorney is critical for your finances to be properly managed if you become incapacitated.
Give me a call (305-443-3104) to get some sound advice and a good strategy for YOUR empire; I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney. Obviously, following a hit TV show isn't how you should plan your estate or manage a business!
Did I mention that I am also a Florida Certified Public Accountant (CPA) and a Florida Bar Board Certified Elder Law Attorney? Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.
You may have heard about a rather unfortunate story that came out in the news a little while ago. The story was about Lorraine Bayless and the Glenwood Gardens nursing home.
Lorraine had a stroke, so CPR was not likely to help her; Lorraine and her family had already arranged for a Do Not Resuscitate (DNR) order, and the facility she was living in didn't provide any skilled nursing care.
What do you want (or need) in a long-term care facility? There are many types of long- term care facilities, with varying degrees of medical or personal care offered. Selecting the “wrong” facility may mean not limiting the care that you or your loved one may want. Glenwood Gardens was not an actual nursing home, so the staff was prevented from performing CPR, both by “company policy” and by law.
What do you want when it comes to end-of-life care? What decisions have you made regarding emergency care, resuscitation, breathing or other life-sustaining apparatuses?
You should commit your wishes and decisions to writing to inform loved ones, doctors and medical facilities about your wishes now so those wishes will be carried out later. Once executed, copies of advance health care directives or living wills should be liberally distributed among agents, non-agent family members, doctors and medical facilities. As these end-of-life wishes also are emotional decisions, it is best if everyone concerned is informed rather than surprised.
For more information about living wills in Miami, Florida, please visit my estate planning Web site.
