One person caught up in this mess is homeless millionaire Alan Fantin. That’s right, a homeless millionaire. Fantin has a net worth in the millions but he has had trouble getting accessing it for years. He has been under a conservatorship that was created thirty years ago after a car accident left him with a severe head injury and partial paralysis.

He owns a house which is mostly paid off. But right now it’s ridden with black mold and there are squatters in the basement who don’t pay rent and won’t leave. And Fantin hasn’t been allowed near the house since he was arrested last month and charged with assaulting his live-in girlfriend. His pre-trial monitoring says he can’t come within one-mile of his alleged victim’s residence, which is also his home, or it it was.

On top of all that he is currently engaged in a legal tussle with the guy who controls his funds, a court-appointed conservator named Scott Christian. Christian was appointed in early 2015. Since then the two have battled constantly over financial matters, ranging from the amount of Fantin’s cable bills to his marijuana use. Christian has described Fantin’s weed smoking as a “substance abuse habit.”

Fantin has had a license to use marijuana for medical purposes since 2001.

In a report in Westword, Fantin says the weed helps him with the seizures he’s bee experiencing since his accident. “When I run out of pot, my seizures are more aggressive and they tend to last longer.”

Westword also reports

…Christian refused to provide any funds for his lodging after he was banned from his house; directed him to use a public defender in his domestic-violence case rather than hire his own attorney; threatened to cut off his phone if he continued to complain; and has been less and less responsive to Fantin’s pleas for help even as his firm’s fees for the conservatorship have steadily increased.

The case offers a rare glimpse behind the closed doors of probate court, where a professional cadre of attorneys, care managers, estate administrators and others are entrusted with guarding the interests and funds of some of society’s most vulnerable people. In many instances, they may be doing just that, protecting the elderly, the sick, the mentally or physically disabled from unscrupulous relatives or neighbors — and sometimes protecting them from themselves.

It’s a fascinating story which we suggest you read. Homeless Millionaire Alan Fantin Wants His Day in Probate Court

New York doesn’t charge inheritance tax, but the estate tax comes with one big provision. Though December 31st of this year there is a $5.5 million exemption which means if the value of the estate is less than $5.5 million, the estate tax is waived.

That tax is in addition to the federal estate tax that hits individual estates worth more than $11,180,000 between gross assets and prior taxable gifts to pay within nine months of the individual’s death. You can get a six-month extension. But chances are you don’t have an estate worth $11 million. Only a few thousand people do.

New York estate property categories

There are only two categories in New York: personal property and real property, Real property is what you probably think it is; land and houses. Personal property is everything else. New York is not a community property state so the surviving spouse doesn’t automatically inherit the deceased’s property.

It does, however have what they call a spousal right of election when deciding on inheritances for spouses. This law states that should a spouse pass away, his or her spouse will receive an “elective share” of $50,000 or one-third of the decedent’s estate. Should a spouse not receive this elective share, he or she has the right to file for it as long as it’s within a six-month window after an executor for the estate has been named.

Importance of a will

If you die with a will in New York things are normally pretty straight forward, but it will still need to go through probate and people can challenge the will. There are ways to avoid probate and the Law Offices of Jeffrey Weinstein can help you avoid probate.

The State entitles surviving spouses who have disinherited them to a piece of their estate. But this is limited to non-probate assets, such as property held in joint tenancy or a jointly held brokerage account paid on death to beneficiaries.

Dying without a will

An administration proceeding is the most common legal event that occurs in New York if you die without a valid will, but you own property. If when you pass away you don’t have a will, your estate consists of either jointly-owned or no real property, and your personal property is worth less than $30,000, you must file as a small estate.

Without a will, if you only own real property, it goes to your nearest relative.

There are other issues involve in estate planning and the law offices of Jeffrey Weinstein (212) 693-3737 can help you navigate the process to lessen the hassle for you and your heirs.

Alicia Johnson, 48, argued that the biological father, 53 year-old Marcus Crumble, her first cousin, didn’t deserve a cent because he raped her when she was 15 and never helped financially with the son who was born as a result of that rape.

Circuit Judge David Borowski agreed with her, writing,

“The Court has seen far too many absent fathers in this community. Out of wedlock births, where a ‘father’ both literally and figuratively abandons a child are a scourge.

“Under the tragic facts and circumstances of this case, including the fact that Mr. Crumble committed both statutory rape and incest, this Court will not allow a six-figure windfall to be awarded to Mr. Crumble.”

However, Crumble was awarded the amount he chipped in for the funeral. Crumble rekindled somewhat of a relationship with his son, Brandon Johnson, after he graduated college.

Borowski wrote, that anyone 18 years old could create a will and direct their estate not go to an abandoning parent. But noted that very few unmarried people without children under 30 actually create a will.

He wrote the equitable powers of the probate court allow him to find that allowing Crumble half of the settlement would amount to unjust enrichment.

Borowski ordered the estate’s special administrator to pay Crumble only the amount he spent for Brandon’s funeral, give half of the remaining $837,000 to Alicia Johnson, and keep the balance for 90 days, or longer if Crumble appeals.

With that in mind here ar three ways to avoid probate.

Establish a Living Trust

A living trust is a great way to avoid probate. What you do is transfer ownership of the assets you intend to bequeath into the trust. While there are cots an time involved in setting up a trust, it’s much easier than dealing with probate.

Give Assets Away

If you have a bunch of assets just sitting around waiting for you to die, you might want to consider giving them away to friends, relatives or charities.

Name Beneficiaries in Bank and Investment Accounts

It may seem like a no-brainer, but many people don’t name beneficiaries on their bank or retirement accounts.

All you need to do to get started is to fill out the payable on death forms that your brokerage company or bank can provide. If you are married, some of these accounts may be partially owned by your spouse. By taking the time to fill out the forms, you can make sure the proceeds are immediately dispersed at death without having to pass through probate, saving your heirs a lot of time and hassle.

So, no matter what your will says, the payouts from these products will go to the beneficiaries you designated when you filled out the forms, even if that was decades ago. That’s why it is important that you review beneficiaries regularly and choose contingent beneficiaries as backups, just in case. For example, you probably don’t want any of your estate to go to a former spouse so you need to make sure you update any documents that name them as a beneficiary.

For most people this should be enough, but for for those substantial assets it might be be best to set up a trust(s). By doing this you can exercise more control, minimize taxes and avoid potential challenges by heirs.

The best part of a trust is they don’t go through probate and are not public record, making the settling of an estate less complicated and less prone to legal challenges. Of course you will need to contact an attorney to decide what type of trust is best or you.

There are ways to deal with these conflicts to resolve differences without going to court. The best advice is for parents to do estate planning, which includes preparing a Last Will and perhaps a Trust document. Preparing a personal letter(s) to heirs explaining one’s intention prior to death is an excellent idea but rarely followed.

A Will challenge can be based on three things:

1. The will is defective on its face; the will may be missing essential elements.
2. Incapacity, the deceased did not have testamentary capacity to make a will.
3. Undue influence.

A valid Will must be witnessed by two disinterested parties. A challenge of incapacity must be based on medical records and medical conditions at the time the Will was executed. Undue influence is difficult to prove unless a new will was created in favor of a non-family member when the decedent was ill or infirm. When a conflict arises between siblings, a cross petition and or an objection to Probate/Administration may be filed. Extensive discovery proceeding may uncover clues to the decedent’s testamentary intentions.

In many cases, a resolution may be reached in a court supervised settlement conference. Our law office has extensive experience reaching out of court settlements, resolutions of disputes between once “close” family members.

The larger-than-life actor gave $1.6 million dollars to various friends and relatives. He split the rest up among the following people: his two sisters-30%, his wife-20% and 20% to his daughter. His son was the benefactor of a life insurance policy which is not subject to taxes.

The New York Daily News quotes William Zabel, the estate lawyer for the stars, as saying,

“It’s a nightmare from a tax standpoint.”

Zabel said the “big mistake” was leaving 80% of his estate to his sisters and his 9-month-old daughter. That makes the money subject to death taxes at rate of 55%.

You can read Gandolfini’s will here.

So, even being a rich celebrity doesn’t mean you can’t get bad advice. With that in mind, here are six tips that will help you pick the right probate/estate planning attorney.

1. Look for an estate attorney with a customized web site, rather than one with a prepackaged generic site with lots of pretty pictures. Pick a custom site loaded with informative wills, trusts or probate articles about the area of law that pertains to your situation. Content-heavy sites are prepared by experienced wills and trust lawyers, not web masters. Avoid those slick sites with lots of flash. You want an old-school law firm with knowledge, not glitz.
2. Look for an estate planning law firm that specializes in the area of law that you need. A general law firm that says they do everything cannot possibly do everything well. The content on the web site will give you an indication of what the firm does best.
3. Contact the NY estate lawyer directly and try to speak to the probate attorney who will be handling your case. Don’t settle for being diverted to a paralegal or an assistant. If the estate planning lawyer is too busy to speak with you initially, ask for a call back. If he or she is too busy to give you the attention you need, maybe you should try someone else. When you speak with the estate lawyer, make sure he/she is a good listener. They can’t help you if they don’t listen. It is important that you feel comfortable with your estate planning lawyer. First impressions are critical.
4. If the New York probate attorney has client reviews on their site, read them all. You will be able to differentiate between honest reviews and canned ones. Don’t be put off by a single bad review; it will only legitimize the others. After all, you can’t please everyone all the time.
5. Ask the NY probate lawyer to explain the entire process to you. Do not be shy; you have the right to know. A good estate lawyer should be able to explain even the most complex matter in simple, easy to understand terms. Remember, you are the boss since you are paying the bill.
6. Finally, go with your gut. Picking the right wills, trusts or estate lawyer can be a challenge. Once you find the right person, the rest of the process will be much easier.

“Estate planning allows an individual to manage and direct where assets are to be distributed upon their death, but [it] also lets an individual plan in order to mitigate or reduce income and estate tax, protect families with young children, save money on court costs and attorneys’ fees associated with not having an estate plan, and plan for end of life,”

So what do we say? We say she is absolutely correct.

The main effect of estate planning give you peace of mind knowing that your assets have been taken care of and there will be no loose ends after you die.

Murphy is quoted again in the laduenews.com article saying,

“After someone dies, the worst thing in the world would be to be left scrambling in the dark, not knowing where [the deceased] loved one wanted to be buried or if [he or she] wanted to be cremated, if there is enough money for the funeral and what was supposed to happen to the contents of the house or the house itself. Having an estate plan allows you to set this all out for your family and friends so that when you pass away, your family can grieve for you and not have to worry about the logistics of death like bills, funeral and taxes.”

Since the idea of no leaving a federal tax burden to their heirs, many people are questioning the need for estate planning since one of the main reasons to estate plan is to lessen the tax burden. But there is more to estate planning than tax issues.

Kiplinger.com has a very useful piece by Tracy Craig. Craig is a Fellow at the American College of Trust and Estate Counsel. She has some useful info on estate planning beyond taxes.

To read more click on the links below:

State Estate and Inheritance Taxes Exist for Many

Probate Can be Costly

Many Beneficiaries Have Issues

Blended Families are Common and Can Be Complicated

We posted the WXYZ video story about this scandal last year. Probate public administrator in Michigan cashes in on other people’s estates…legally

Barbara Andruccioli was one of the lawyers exposed by Detriot’s WXYZ 7 News investigation into collusion between probate attorneys and estate brokers to cheat heirs. She was recently hired by the Oakland County Probate Court at a taxpayer cost of $102,000/year. Channel 7 investigator asked Anruccioli, “How can the taxpayers have any confidence with you working here?” Andruccioli answered, “Really, I think you probably need to talk to the judges.”

Andruccioli was a partner at Kemp Klein law firm and an Attorney General-appointed Public Administrator: a public official with the authority to open probate estates after someone dies if there are no heirs available.

WXYZ reports

Andruccioli was a partner at Kemp Klein law firm. She was also an Attorney General-appointed Public Administrator, a public official with the authority to open probate estates after someone dies if there are no heirs available.

Court records show Andruccioli teamed up with real estate broker Ralph Roberts and his companies to open those estates, sell the homes, and cash in.

WXYZ uncovered court filings showing “Andruccioli and one of Roberts’ companies, Probate Asset Recovery, were billing for thousands of dollars, while the actual heirs ended up with very little.”

After the station’s investigation, Attorney General Bill Schuette terminated Andruccioli as a Public Administrator and the FBI and Oakland County Sheriff’s detectives raided Ralph Roberts offices, and launched a criminal probe into the Public Administrators.

Oakland County Clerk Lisa Brown told the station that her reaction when she first heard of the hiring was “Shock, absolute shock and bewilderment… So out of having a wonderful pool of applicants, why would you choose this person who has a cloud over them?”

Joan Antoniello, of Mazurs USA Wealth Advisors told Bloomberg News, ““For the mega wealthy, it’s really a window of opportunity that’s limited.”
Dynasty trusts let the richest Americans protect and preserve wealth for generations, while minimizing tax bills. Treasury Secretary Steven Mnuchin appears to have used one prior to assuming his government role. They can be funded tax-free with assets up to the exemption limit, which was $10.98 million in 2017 for couples, even though complex tax-planning techniques can get around that threshold.

Blloomberg reports that about a dozen of the nation’s top wealth planners say they’re seeing “increased interest in the trusts as clients look to capitalize on the additional $11 million they can now easily shift over. Some families want to transfer money out of their estates into the trusts in case Democrats take back control of Congress and pull the limits back down before 2025, while others say it’s best to move assets before they appreciate even more.”

Estimates are the new rules affect fewer than 2,000 families per year, but billions of dollars are at stake. A University of California, Berkeley study found that 0.1% of families control a growing share of U.S. wealth, from an estimated 7 percent in 1978 to 22 percent in 2012. The net worth of the wealthy has zoomed even higher in recent years as values of stocks, real estate and private businesses have climbed.

“Hello Lawrence County, Laura Terry Powell here and I mustache you a question…,” she said, then urged people to register to vote in the June 5 primary.

“All jokes aside, I’m sorry to the Hatton community for this eyesore. “I’m going to attempt to scrub it off today and if that doesn’t work we’ll get it fixed as soon as possible.”

You can view the video here:

https://www.facebook.com/powellforprobate/videos/425599941222227/?t=7

The estate’s administrator, Dennis King was ordered earlier by Commissioner Brendy Penny to file a status report or a petition for final distribution by September 10th. The actress’ will asks that the residue of the estate be made part of the Carrie Fisher Living Trust. King is the trustee of the trust and the instrument’s beneficiary is Fisher’s daughter, 25-year-old actress Billie Catherine Lourd. Created on Jan. 15, 2016, the will states the executor is authorized to pay the estate’s federal, state and inheritance taxes and to use his discretion regarding the preliminary and final distribution of property.

Known for playing Princess Leia in the “Star Wars” film series, the 60 year-old Fisher died Dec. 27, 2016, a day before the death of her mother, 84 year-old Debbie Reynolds.

This can be done without discretion of the individual relationship between the decedent and that relative. Unfortunately, these relatives could possibly have had almost no contact, if any, with the decedent, making intestate succession an often unsatisfactory alternative. If the decedent did not take the time to draft a last will that clearly and concisely expresses their intentions regarding the disposition of their estate, anything can happen. Sentimentality will undoubtedly clash with practicality as relatives and families attempt to divide the estate and assets, and an unnecessary burden will be placed on all surviving relatives. In the event the decedent has no surviving relatives, the entire probate estate will escheat to the state of New York.

The New Hampshire Union Leader reports the petition was filed by the three sisters of Linda Carman, Nathan’s mother, who was lost at sea while on that fishing trip with Nathan. Carman’s aunts allege that Carman committed the “heinous act” of shooting and killing John Chakalos in his Windsor, Conn. home in 2013 out of “malice and greed” and states “the petitioners believe that Nathan murdered their father, and they ask this court to so find.”

Chakalos was shot three times in the head in his bed in December 2013 in his West Chesterfield, NH mansion. While no one has been charged in the murder, Police have publicly stated Nathan Carman is a suspect in the case.

His mother, Linda Carman is presumed dead and Carman is in line to collect the portion of the family estate that would have gone to his mother.

The petition claims his his aunts “seek to prevent that unjust result.” The action is known as the “slayer rule.” The rules states that

a murderer cannot retain a property interest in his victim’s estate. The slayer rule allows courts to presume the murderer disclaims their property interest, and therefore behave as though the murderer predeceased the victim. This has the effect of disqualifying the murderer from receiving property from the estate of the victim.

Nathan Carman currently has access to a $400,000 trust that was owned by him, Chakalos and his mother. He is now is now the sole owner of the trust..

The FBI and police from several New England states have been investigating the Chakalos murder and the disappearance of Nathan’s mother. Carman. They have obtained search warrants for Nathan Carman’s home, cell phone and vehicle.

Received a phone call one morning saying that they had some good and bad news for me. They said the good news was the appraisal came back great, my credit was wonderful, the loan was ready to go, all I needed to do was sign it. But the bad news was I didn’t own 100 percent of the property.

Ouch. What? As it turns out, he only owned two-thirds of the home due to a mistake by the estate’s attorney. The estate was never finalized.

Johnson is out $10,000 and has nothing to show for it. He has some advice for potential probate home buyers

My message to anybody dealing with a probate would definitely be have your own attorney, one that you trust to go over every last bit of what is going on. Request a title search. That is probably the biggest thing and in this case would have taken care of all of it.”

Recent actions by a handful of individuals has made it clear that it is time to make changes to the public administration system in Michigan…The current law has not been updated in nearly 40 years and while most abided by the law, the abuses that occurred and the families who lost homes and inheritances cannot be undone. It is our job to make sure it does not happen again. This new legislation will make the necessary changes to ensure there is a direct path to follow in the probate process and will help ensure heirs are better protected.

Andrea Bitely, Communications Director for Schuette, told Detroit’s WXYZ

We want to make sure that if you lose a loved one, you aren’t placed in jeopardy again of losing the home you live in, running into financial difficulties. That’s not good practice… The Public Administrators that have previously ignored the rules that we put in place have either resigned or been terminated.

Under the current law, 42 days after someone dies, a Public Administrator can open an estate in probate court in the deceased person’s name to handle any assets. The Public Administrator then bills the estate for legal fees.

Now two new laws have been introduced in the Michigan House of Representatives. WXYZ reports one of the laws extends the number of days to 93 days, giving heirs more time to open their own probate estates. The other caps the fees that the public administrator can collect.

Luckily for New Yorkers, there is no time limit to open a probate proceeding.

When a person signs a power-of-attorney, he/she gives another person the power to act on his/her behalf, in managing their assets and affairs. The “durable” power-of-attorney is different from an ordinary power-of-attorney in that it does not become inoperative if you become incapacitated.

In drafting powers-of-attorney, you should be careful to confer powers with as much specificity as possible. This is to avoid to avoid the possibility of a court finding a specific omission as an intent to fail to grant that specific power.

In a few states, you are allowed to delegate durable power-of-attorney for various health care powers in addition to control over financial matters. But in In New York State you have to create a separate health care power-of-attorney or proxy in addition to a power-of-attorney.

The great thing about the durable power-of-attorney is that it remains effective after you’re incapacitated. That means whomever you gave power to can immediate act and manage your assets or to take other measures without having to go through costly and time-consuming guardianship proceedings to get authorization to manage your affairs.

In her will, Bronx widow Ellen Frey-Wouters left $300,000 to Troy and Tiger, her two cats. Her will instructed the money be used to make sure they would “never be caged” and always be lovingly cared for.

The New York Post quotes Dahlia Grizzleto, a former health aide Frey-Wouters and now caretaker of the cats as saying, “He deserves it… He’s a wonderful cat.”

Frey-Wouters, who died in 2015 was born in the Netherlands and worked for the United Nations. Her husband, a Brooklyn College professor, passed away in 1989, and the couple’s only child died in infancy.

Troy lives with Rita Pohila, another one of Frey-Wouters’ former home health aides. Pohila, declined to discuss Troy with The Post — invoking the shy feline’s “privacy” rights. Tiger made out like a bandit.He was a former alley cat who i snow living large in Ocala, Florida, dining on filet- ­mignon-flavored Fancy Feast and bedding down in a plush faux-fur bed with silk lining.

Frey-Wouters attorney, Irwin Fingerit was surprised the the bequest

“I said I didn’t think, you know, $300,000 was necessary, and I pointed out the case of the Queen of Mean, Leona Helmsley, who left $65,000 to a dog and became sort of a laughingstock,’’ Fingerit said during a 2016 hearing about the gift. (Helmsley actually left $12 million to her Maltese, Trouble.)

“But no, no, [Frey-Wouters] insisted,” Fingerit said. “She wanted to make sure they were taken care of.”

When the cats die, the balance of their trust fund will go to Frey-Wouters’ only living family member, a sister in the Netherlands.