Redkey Gordon P.C.

Only at Burning Man...

http://blogs.findlaw.com/legally_weird/2013/08/play-legally-on-the-playa-5-legal-issues-at-burning-man.html

We're Not Gonna Take It – Twisted Sister Drummer’s Family Feuds over Estate

When Twisted Sister drummer AJ Pero died on March 20, it caught his fans and bandmates by surprise — and Pero’s own lack of estate planning has reportedly thrown his family into chaos as well.

Dee Snider stated in an article on the website ultimateclassicrock.com “not only did AJ Pero have a family history of heart disease, which he allowed to go unchecked, but he did not have a will, left behind two ex-wives, a longtime girlfriend, four children between the three of them and a mess of an estate to be sorted out.”

Oh my.

Now the article, titled “Twisted Sister Drummer AJ Pero Died Without a Will,”says there’s plenty of infighting, mistrust, and dissension among the family members about how to handle AJ’s estate. “What a mess.”

Twisted Sister was planning to retire as a band after a 40th anniversary tour, and is now trying to help AJ’s survivors. “While the legalities of the situation are being sorted out, Twisted Sister is doing a show to raise some money to help the family out in the short-term,” Snider remarked.

“This unfortunate situation should be a life lesson to all to take responsibility for the world we create and will leave behind when we are gone.”

Wow, did you catch Dee Snider’s great estate planning advice?

Take responsibility now and after we’re gone.

Although Pero’s longtime girlfriend started a GoFundMe campaign to help with expenses of the daughter she had with AJ, that site is no longer online.

It’s no secret that there’s major potential for disagreements after a loved one’s death—even when there is a will. Make sure that you speak to Robert A. Gordon of Redkey Gordon Law Corp, a qualified estate planning attorney to take responsibility for your family and avoid the headaches now facing the family of Twisted Sister’s late drummer.

Reference: ultimateclassicrock.com (April 8, 2015)“Twisted Sister Drummer AJ Pero Died Without a Will”

Walking Down the Aisle for the Second (or Third) Time? Consider These Estate Planning Tips

Below are a few important considerations for estate planning for second (or subsequent) marriages.

If you find yourself looking at marriage for the second or third time, you may want to browse over to The Des Moines Register for an article entitled “Estate planning for a second marriage” that discusses several great tips to keep in mind. Here are a few:

Discuss Money. This is a major cause of stress in any marriage; however, it can be really challenging in a second one. You and your future spouse should talk about and come to an agreement on all of the important financial issues. Make plans that both of you are OK with. If you’re considering a prenuptial or postnuptial agreement, it’s all the more important to tell all (finances-wise).

Consider a prenuptial or postnuptial agreement. This contract is critical if you will bring assets into the marriage, the article explains. A surviving spouse has the legal right to take an “elective share” of the deceased spouse’s estate, regardless of what is in the will, usually one-third or one-half of the elective estate. If this happens, it may result in the unintentional disinheritance of your children or other heirs. The only way to trump the elective share laws is to sign a prenup or postnup where both parties waive their rights to the elective share. This reduces the chance that state law will interfere with your intended estate plans.

Revise your will and other estate planning documents. Remarriage doesn’t revoke a will (although state law can supersede it), so it’s critical that you draft a new will that takes into account your new circumstances.

Providing for children from a previous marriage. It can be a big concern in many second marriages to provide for the new spouse without cutting out children from an earlier marriage. Robert A. Gordon of Redkey Gordon Law Corp, an estate planning attorney can help you place your assets into a qualified terminable interest property (QTIP) trust. With this, all trust income is devoted to supporting the surviving spouse while the principal is preserved for the children. Plus, assets passing to a valid QTIP trust qualify for the marital deduction, which helps reduce possible estate taxes at your passing.

Reference: Des Moines Register (April 14, 2015) “Estate planning for a second marriage”

Inheritance Scam in Brooklyn Costs Victims $300k

“I would strongly urge anyone who is offered a lot of money for an alleged short-term loan to be very wary, as it is often a scam and a sure way to lose your hard-earned savings.”

Scammed by your own friend? Hey, it can happen. And not always in the way you may think.

Normally an inheritance scammer pretends to be an attorney or estate agent. They tell a potential victim that the victim has inherited a large fortune from an estranged or long lost relative. However, before the victim can get the inheritance, the scammer claims that the victim must cough up large sums of money to pay off taxes or other debts that the estate holds.

A woman in Brooklyn is alleged to have turned this standard inheritance scam around.

She forged bank documents to make it look like she had received an inheritance for $13 million in cash. She then went to her friends and convinced some of them that to get the cash she needed money to pay the estate's taxes and debts.

She is alleged to have conned $300,000 from up to ten people.

The New York Post has more on the story in a recent article titled "Woman busted in $300K inheritance scam: DA."

Avoiding inheritance scams is easy.

If someone you do not know asks for money concerning an inheritance, especially if it seems too good to be true, consult with Robert A. Gordon of Redkey Gordon Law Corp, an estate attorney before spending any money.

If the person objects to you receiving the advice of an attorney, run away!

No legitimate estate administrator would object to an attorney being consulted.

In this particular case, the attorney would have told the victims that any taxes or other debts could have been paid out of the cash in the estate, if in fact the inheritance were real.

Reference: New York Post (April 14, 2015) "Woman busted in $300K inheritance scam: DA."

Will the Death Tax Be Repealed?

The House voted last week to repeal the estate tax, a longtime priority of Republicans that also spurred Democratic charges that the GOP is in the pockets of the rich. The 240-179 vote broke down largely on partisan lines, with seven Democrats voting to repeal the estate tax and three Republicans voting against it. 

Senator John Thune (R-SD) introduced legislation to repeal the estate tax, but it’s uncertain when or if that proposal might get a vote. There were 54 senators who supported the estate tax repeal last month in a non-binding budget resolution vote. Nonetheless, this is six votes short of the 60 needed.

The Hill’s article, titled“House votes to repeal estate tax,” notes that a repeal of the estate tax would increase the deficit by $269 billion over the next 10 years, and the Joint Committee on Taxation projects that the estate tax will impact 5,400 estates in 2015. This is approximately 0.2% of the 2.6 million deaths expected in the U.S. this year.

Under current law, individuals with estates of under $5.43 million in the year 2015 (and couples with $10.86 million estates) are exempt from paying the estate tax of 40% on the amount of assets above that threshold.

The article says that Republicans think they have a strong argument for repealing what they believe is “an immoral tax that resonates with voters across the economic spectrum.” The GOP claims that people are taxed every step along the way as they accumulate assets—as a result, their heirs shouldn’t have to worry about the estate tax when they die. In addition, the estate tax is more likely to hit family farms and small businesses than the ultra-wealthy who can afford complex estate planning. But, as one might guess, the Democrats see this differently and see the vote as another way to portray the Republicans as the party of tax cuts for the rich.

Want to find out more? Contact an experienced estate planning attorney, Robert A. Gordon of Redkey Gordon Law Corp.

Reference: The Hill (April 16, 2015) “House votes to repeal estate tax”

The 50+ Bride (or Groom)

Coming together at 50-plus is different from getting married in your 20s, particularly when it comes to money. "You've had a lifetime of solidifying your money beliefs" and behaviors, says Janet Stanzak, president of the Financial Planning Association. These are some ways to smooth the transition if you're tying the knot this summer.

It’s true, marriage at 50 looks a lot different than marriage at 25. And no, we aren’t talking about the latest wedding fashions or honeymoon destinations. Financially, there is much to consider when getting married past 50.

AARP Magazine published an article titled “4 Smart Money Moves If You Marry After 50”last summer that did a great job of discussing some reminders before saying “I do” after you turn age 50. These reminders will work for you if you are walking down the aisle this June, July, or August.

Talk about prior obligations. With age comes various obligations like support payments and debts. Share your credit reports and scores, and review previous divorce agreements for details about cash flow, assets and debts.

Don't forget your adult children. Although you may have considered what you'd like to do for them financially, and they've probably have some ideas about what they may one day inherit, a later-in-life marriage changes this. It also complicates your estate planning, so speak with an experienced estate planning lawyer about the changes. The article advises that you discuss your decisions with your new spouse and adult kids to hopefully decrease or eliminate the amount of controversy down the line. You can also formalize these plans in a prenuptial agreement.

In addition to a prenup, revisit your estate plan with Robert A. Gordon of Redkey Gordon Law Corp, a qualified estate planning attorney, in addition to your beneficiary designations. Wills finish second to legal titles to real estate or beneficiary designations on financial accounts, as well as retirement plans and insurance policies. Make any changes in writing, and be careful with Social Security, the article cautions.

On last thing: if you're close to 62 and want to apply for a former spouse's Social Security benefit, you shouldn’t remarry, as you must be single at the time you apply.

Reference: AARP Magazine (June/July 2014) “4 Smart Money Moves If You Marry After 50”