Texas Estate Planning

Why are Siblings Battling over Mom’s Estate?

Sisters Jean Mamakos and Irene Savadian — both retired nurses in their 70s —have been locked in a bitter fight with their three other siblings over their mother’s $2.7 million estate.

The New York Post’s recent article entitled “Nasty family feud over mom’s will lands two retired sisters in jail — and one may lose her home” explains that Frances Perrenod, who died in 2006, named Mamakos and Savadian as the executors of her estate. All five of her children were named as beneficiaries. Perrenod was a homemaker and her husband, Charles, who died in 1988, manufactured specialized miniature light bulbs.

Since the siblings started their legal challenges in 2008, their objections have included the payment of legal fees to settle the estate with money from it; the cost to pursue mineral rights owned by their mother; and allegations that the executors delayed the sale of their mom’s Forest Hills home. They sold the Tudor home, which the family moved into in 1957, in 2014 for $1.8 million.

Anette Klingman, the oldest sibling who is an attorney, told The Post that her sisters were mismanaging the estate and taking money out of it to which they weren’t entitled. She was joined in her opposition to them with sister, Yvette Ravina, and her brother Charles Perrenod Jr., who died in 2020.

One of the disgruntled siblings also started a proceeding in South Carolina to take Irene Savadian’s house.

However, it really got ugly in April 2016, during a lunch break in a proceeding in Surrogate’s Court in Queens, Mamakos and Savadian said. Queens Surrogate Judge Peter Kelly said that the sisters were in contempt of court. At issue was a $100,000 distribution made to each beneficiary, a check the three disgruntled siblings refused to cash, Mamakos said. The judge ordered the two sisters to return their checks, but Savadian refused. Because Kelly said the sisters’ actions were “entwined,” both were sent to Rikers Island, where they were strip-searched and spent 21 days behind bars.

The two retained a lawyer for $50,000 to get them released from the lockup. However, when they were released, the discovered that Judge Kelly had replaced them as executors, naming their sister, Ravina.

In 2018, a final judgment in the estate was entered against Mamakos and Savadian for $1.8 million. It included the return of money they used for legal and other expenses to settle the estate. Judge Kelly ruled against a motion to vacate the judgment in October 2021, which the sisters are now trying to appeal.

Ravina started a lawsuit in South Carolina to take Savadian’s $400,000 house.

“We didn’t steal any money from my mother. We tried to get a good settlement for our siblings,” Savadian said. “It backfired against us.”

Reference: New York Post (Jan. 22, 2022) “Nasty family feud over mom’s will lands two retired sisters in jail — and one may lose her home”

Why are Siblings Battling over Mom’s Estate?

Sisters Jean Mamakos and Irene Savadian — both retired nurses in their 70s —have been locked in a bitter fight with their three other siblings over their mother’s $2.7 million estate.

The New York Post’s recent article entitled “Nasty family feud over mom’s will lands two retired sisters in jail — and one may lose her home” explains that Frances Perrenod, who died in 2006, named Mamakos and Savadian as the executors of her estate. All five of her children were named as beneficiaries. Perrenod was a homemaker and her husband, Charles, who died in 1988, manufactured specialized miniature light bulbs.

Since the siblings started their legal challenges in 2008, their objections have included the payment of legal fees to settle the estate with money from it; the cost to pursue mineral rights owned by their mother; and allegations that the executors delayed the sale of their mom’s Forest Hills home. They sold the Tudor home, which the family moved into in 1957, in 2014 for $1.8 million.

Anette Klingman, the oldest sibling who is an attorney, told The Post that her sisters were mismanaging the estate and taking money out of it to which they weren’t entitled. She was joined in her opposition to them with sister, Yvette Ravina, and her brother Charles Perrenod Jr., who died in 2020.

One of the disgruntled siblings also started a proceeding in South Carolina to take Irene Savadian’s house.

However, it really got ugly in April 2016, during a lunch break in a proceeding in Surrogate’s Court in Queens, Mamakos and Savadian said. Queens Surrogate Judge Peter Kelly said that the sisters were in contempt of court. At issue was a $100,000 distribution made to each beneficiary, a check the three disgruntled siblings refused to cash, Mamakos said. The judge ordered the two sisters to return their checks, but Savadian refused. Because Kelly said the sisters’ actions were “entwined,” both were sent to Rikers Island, where they were strip-searched and spent 21 days behind bars.

The two retained a lawyer for $50,000 to get them released from the lockup. However, when they were released, the discovered that Judge Kelly had replaced them as executors, naming their sister, Ravina.

In 2018, a final judgment in the estate was entered against Mamakos and Savadian for $1.8 million. It included the return of money they used for legal and other expenses to settle the estate. Judge Kelly ruled against a motion to vacate the judgment in October 2021, which the sisters are now trying to appeal.

Ravina started a lawsuit in South Carolina to take Savadian’s $400,000 house.

“We didn’t steal any money from my mother. We tried to get a good settlement for our siblings,” Savadian said. “It backfired against us.”

Reference: New York Post (Jan. 22, 2022) “Nasty family feud over mom’s will lands two retired sisters in jail — and one may lose her home”

Some of Most Famous (or Infamous) Estate Planning Mistakes

Blunders in the estate planning of high-profile celebrities is one very good way to learn the lesson of what not to do. The Wealth Advisor’s recent article entitled “Lessons To Be Learned From Failed Celebrity Estates” gives us some celebrity estates where the mistakes have caused problems for their heirs.
James Gandolfini. The Sopranos actor left only 20% of his estate to his wife, but if he’d left more of his estate to his wife, the estate tax on that gift would have been avoided. He failed to maximize the tax savings in his estate. Consequently, 55% of his total estate, including a significant art collection, went to pay estate taxes.
James Brown. The Godfather of Soul left the copyrights to his music to an educational foundation, his tangible assets to his children and $ 2 million to educate his grandchildren. However, because of ambiguous language in his estate planning documents, his girlfriend and her children sued. Six years later and after the payment of millions in estate taxes, his estate was finally settled.
Michael Jackson. The King of Pop had a trust—but he never funded it in his lifetime. As a result, there’s be a long and costly battle in the California Probate Court over control of his estate.
Howard Hughes. Although he wanted his $2.5 billion fortune left to medical research, no valid written will could be discovered at his death. Instead, his wealth was divided among his 22 cousins. Because Hughes Aircraft Co. was gifted to the Hughes Medical Institute prior to his death, it wasn’t included in his estate.
Michael Critchton. The famous author was survived by his pregnant fifth wife. His son was born after his death, but since his will and trust didn’t anticipate a child being born after his death, his daughter from a previous marriage tried to exclude his son from his estate. While the California statute would have included his son in his estate, as pretermitted heir, the author had language that specifically overrode the statute and excluded all heirs not otherwise mentioned in his will—failing to anticipate that he’d die with an unborn son—whom he didn’t mention in the will.
Casey Kasem. The DJ’s wife and the children of his prior marriage fought over his end-of-life care and even the disposition of his body. It made for an embarrassing scene, including kidnapping and theft of his corpse.
Prince and Aretha Franklin. Both music superstars died without a will, so their families were each involved in very public, and in the case of Prince, a very contentious settlement of their estates.
If you have an estate plan in place, review your existing documents to make certain that it still accomplishes your wishes. Consider these mistakes of celebrities when you’re creating a comprehensive estate plan.
Reference: The Wealth Advisor (Aug. 31, 2021) “Lessons To Be Learned From Failed Celebrity Estates”

Where Do You Score on Estate Planning Checklist?

Make sure that you review your estate plan at least once every few years to be certain that all the information is accurate and updated. It’s even more necessary if you experienced a significant change, such as marriage, divorce, children, a move, or a new child or grandchild. If laws have changed, or if your wishes have changed and you need to make substantial changes to the documents, you should visit an experienced estate planning attorney.
Kiplinger’s recent article “2021 Estate Planning Checkup: Is Your Estate Plan Up to Date?” gives us a few things to keep in mind when updating your estate plan:
Moving to Another State. Note that if you’ve recently moved to a new state, the estate laws vary in different states. Therefore, it’s wise to review your estate plan to make sure it complies with local laws and regulations.
Changes in Probate or Tax Laws. Review your estate plan with an experienced estate planning attorney to see if it’s been impacted by changes to any state or federal laws.
Powers of Attorney. A power of attorney is a document in which you authorize an agent to act on your behalf to make business, personal, legal, or financial decisions, if you become incapacitated. It must be accurate and up to date. You should also review and update your health care power of attorney. Make your wishes clear about do-not-resuscitate (DNR) provisions and tell your health care providers about your decisions. It is also important to affirm any clearly expressed wishes as to your end-of-life treatment options.
A Will. Review the details of your will, including your executor, the allocation of your estate and the potential estate tax burden. If you have minor children, you should also designate guardians for them.
Trusts. If you have a revocable living trust, look at the trustee and successor appointments. You should also check your estate and inheritance tax burden with an estate planning attorney. If you have an irrevocable trust, confirm that the trustee properly carries out the trustee duties like administration, management and annual tax returns.
Gifting Opportunities. The laws concerning gifts can change over time, so you should review any gifts and update them accordingly. You may also want to change specific gifts or recipients.
Regularly updating your estate plan can help you to avoid simple estate planning mistakes. You can also ensure that your estate plan is entirely up to date and in compliance with any state and federal laws.
Reference: Kiplinger (July 28, 2021) “2021 Estate Planning Checkup: Is Your Estate Plan Up to Date?”

What Exactly Is a Trust?

MSN Money’s recent article entitled “What is a trust?” explains that many people create trusts to minimize issues and costs for their families or to create a legacy of charitable giving. Trusts can be used in conjunction with a last will to instruct where your assets should go after you die. However, trusts offer several great estate planning benefits that you don’t get in a last will, like letting your heirs to see a relatively speedy conclusion to settling your estate.
Working with an experienced estate planning attorney, you can create a trust to minimize taxes, protect assets and spare your family from going through the lengthy probate process to divide up your assets after you pass away. A trust can also let you control to whom your assets will be disbursed, as well as how the money will be paid out. That’s a major point if the beneficiary is a child or a family member who doesn’t have the ability to handle money wisely. You can name a trustee to execute your wishes stated in the trust document. When you draft a trust, you can:
Say where your assets go and when your beneficiaries have access to them
Save your beneficiaries from paying estate taxes and court fees
Shield your assets from your beneficiaries’ creditors or from loss through divorce settlements
Instruct where your remaining assets should go if a beneficiary dies, which can be helpful in a family that includes second marriages and stepchildren; and
Avoid a long probate court process.
One of the most common trusts is called a living or revocable trust, which lets you put assets in a trust while you’re alive. The control of the trust is transferred after you die to beneficiaries that you named. You might want to ask an experienced estate planning attorney about creating a living trust for several reasons, such as:
If you’d like someone else to take on the management responsibilities for some or all of your property
If you have a business and want to be certain that it operates smoothly with no interruption of income flow, if you die or become disabled
If you want to shield assets from the incompetency or incapacity of yourself or your beneficiaries; or
If you want to decrease the chances that your will may be contested.
A living trust can be a smart move for those with even relatively modest estates. The downside is that while a revocable trust will usually keep your assets out of probate if you were to die, there still will be estate taxes if you hit the threshold.
By contrast, an irrevocable trust can’t be changed once it’s been created. You also relinquish control of the assets you put into the trust. However, an irrevocable trust has a key advantage in that it can protect beneficiaries from probate and estate taxes.
In addition, there are many types of specialty trusts you can create. Each is structured to accomplish different goals. Ask an experienced estate planning attorney about these.
Reference: MSN Money (July 9, 2021) “What is a trust?”

The Latest on Aretha Franklin’s Estate

The attorneys representing two of Aretha Franklin’s sons say yet another will was found in the files of a law firm she had hired to help her with estate planning.
New York Times’ recent article entitled “Another Possible Aretha Franklin Will Surfaces in Estate Dispute” reports that the legendary singer died at 76 in 2018, and her family assumed she had no will. Then, nine months later, a few handwritten documents, which may represent two or even three wills, were found in the singer’s Detroit home. This caused a fight among her four sons over how her estate should be run, and its assets divided.
The latest chapter in the story is that a detailed document has been found that lawyers for two of Franklin’s sons say is a draft of yet another will from Franklin’s final years. The papers, filed in a Michigan court this week, include an eight-page document, titled “The Will of Aretha Franklin.” This will was said to have been drafted in 2018. The filing also includes another 23 pages that detail the terms of a trust. Both of these are stamped “draft,” and neither document has Franklin’s signature.
According to the lawyers, Franklin retained a Detroit lawyer, Henry M. Grix, to help with her estate planning. The filing includes correspondence from Grix, dated December 2017, in which he summarizes an estate plan for Franklin, asks her some questions and refers to earlier discussions between them. The filing includes further handwritten notes, said to be Franklin’s, in which she lists family members and other lawyers, along with her properties.
The filing, by attorneys for her sons Ted White Jr. and Clarence Franklin, states that the documents are evidence that their mother had been in discussions with Grix “for over two years,” and that the correspondence included her initials. After she “fell very ill,” they said, another lawyer informed Grix that she was unable to sign.
It is not known how the document would impact the ongoing negotiations over the estate, which is estimated to be worth $80 million.
The document wasn’t signed by Franklin, but under Michigan law, it could be accepted as a valid will. If the person who wants this to be Aretha Franklin’s will can prove to the court by clear and convincing evidence that she intended it to be her will, then the court could rule that it is.
Reference: New York Times (March 11, 2021) “Another Possible Aretha Franklin Will Surfaces in Estate Dispute”

Will James Brown’s Estate Finally Be Settled after 15 Years?

The South Carolina Supreme Court in June finally began sorting out the litigation that has been part of Brown’s estate since his death. The court held that Brown was never legally married to his fourth wife, Tomi Rae Hynie, because she had not annulled a previous marriage.
Wealth Advisor’s recent article entitled “Might The Battle Over James Brown’s Estate Finally Be Coming To A Close After Nearly 15 Years” explains that the court’s decision weakens her claim to the estate. The estate has been valued to be worth between $5 million and $100 million. It’s the first real move forward in years. According to The New York Times, “the Supreme Court instructed the lower court to “promptly proceed with the probate of Brown’s estate in accordance with his estate plan,” which called for the creation of a charitable trust to help educate poor children.”
South Carolina law stipulates that Hynie, as Brown’s widow, would have had the right to a third of his estate’s value, no matter what his will instructed.
Hynie was married in 2001 to Javed Ahmed, a Pakistani man who already had three wives in his native country. Her lawyers argued that since Ahmed was a bigamist, their marriage was void. South Carolina’s lower courts agreed, holding that her marriage to Brown was valid.
However, the South Carolina Supreme Court disagreed. “All marriages contracted while a party has a living spouse are invalid, unless the party’s first marriage has been ‘declared void’ by an order of a competent court,” the Court explained.
Hynie’s counsel will be filing “a petition to reconsider and rehear the decision.”
Hynie is entitled as spouse to a share of Brown’s valuable music copyrights under federal law. She has already settled part of her dispute with the estate, agreeing to give 65% of any proceeds from her so-called termination rights—copyrights that, though once sold, can return to the songwriter or his heirs after several decades—to charity.
Brown’s will had bequeathed $2 million for scholarships for his grandchildren. The will said that his costumes and other household effects were to go to six of his children, and the remainder of the estate was to go to the charitable trust for the poor, called the “I Feel Good Trust.”
The South Carolina Supreme Court ruling is significant, because Brown’s 2000 will said, “Any heirs who challenged it would be disinherited. However, several of his children and grandchildren sued after his death,” notes The New York Times.
Reference: Wealth Advisor (July 20, 2020) “Might The Battle Over James Brown’s Estate Finally Be Coming To A Close After Nearly 15 Years”

Which Famous People Have Made The Greatest Estate Planning Mistakes of All Time?

The instructions for the disposition and management of one’s estate at death through the use of wills, trusts, and other devices can cover almost about any topic you can think of. While the majority of instructions in estate planning concern finances, wills and trusts frequently guide decisions regarding health care, guardianships, business, education and even which heir gets the entire Barry Manilow record collection. 

Born2Invest’s recent article entitled “The biggest estate planning blunders of all time” looks at a few colossal estate planning mistakes by the rich and famous. 

Estate planning usually conjures up thoughts of drafting a will by an attorney. Although the cost of drafting an estate plan varies significantly based on location and complexity, it can range from a few hundred dollars to several thousand. Regardless of the cost, hiring an experienced estate planning attorney will save your family time, money and anguish after your death. 

With that said, let’s take a look at some infamous estate planning errors by those who simply didn’t get around to this very important task. 

Ted Williams (Baseball Legend). When Ted died in 2002, he had one will that said his body should be cremated, and another that instructed he should be cryogenically frozen. As you can imagine, there was a fight among his children. This resulted in Ted’s decapitation (postmortem). Therefore, the Splendid Splinter, unquestionably the greatest baseball hitter of all time, had his body and head frozen in Arizona at Alcor Life Extension Foundation. 

Sonny Bono (Singer and Congressman). Sonny didn’t create a will. As a result, he passed away intestate. A lawsuit was initiated by ex-wife and singing star, Cher, to collect $1.6 million in unpaid alimony, along with a fraudulent claim by an illegitimate child (disproven by DNA testing), and Sonny’s widow, Mary. 

Heath Ledger (Actor). Heath failed to revise his will after the birth of his daughter. At his death in 2003, his entire estate was split between his parents and sisters, but they agreed to give all the money to his daughter. 

Philip Seymour Hoffman (Actor). The Oscar-winning actor also never updated his will after the birth of his two daughters. Since he wasn’t married to his then girlfriend, there was an approximate $12 million estate tax that was owed. 

Joe Robbie (the owner of the NFL Miami Dolphins). Robbie had a substandard estate plan that contained a pour-over will and revocable inter vivos trust. This was designed to defer estate taxes until after the death of his wife. However, it didn’t work as planned. She demanded her “elective share” as spouse, 30% of the husband’s illiquid estate, which created a $47 million tax bill that could only be settled by selling off his football team. His 11 children also went to court to fight over his estate. 

James Brown (Singer). The “Godfather of Soul” wasn’t around to witness the 12-year epic legal battle among several blended families over his estate. 

Barry White (Singer). White died in 2003 in the middle of divorce proceedings. Legally speaking, he was still only separated from his wife. As a result, she got it all, instead of his current girlfriend and mother of nine kids. 

There are many more famous people who posthumously became members of this dubious club. Their eligibility for membership was poor estate planning that resulted in unintended—and in some cases, tragic—consequences. Although many Americans can’t really identify with these mega-wealthy or public icons, they do have assets and families and friends.  

The club of notable stars with estate planning errors shows the rest of us the need for proactive professional planning. Be certain that you work with a qualified estate planning attorney, so that your estate plan doesn’t end up like the ones above. 

Reference: Born2Invest (January 27, 2020) “The biggest estate planning blunders of all time” 

How Does the Death of Prince’s Brother Impact the Late Rock Star’s Estate?

Alfred Jackson was one of six of Prince’s siblings who were heirs to their brother’s fortune worth at least $100 million. But they sold 90% of his estate rights last year to Primary Wave, a well-funded and growing entertainment company that invests in music publishing and recording rights. Prince’s sister Tyka Nelson also struck a deal with Primary Wave, and was given cash up front as the estate proceedings drag on. 

The StarTribune’s recent article entitled “Death of Prince heir complicates estate settlement even more” reports that because of these moves, about a third of Prince’s assets could wind up being controlled by parties who were not related to him—which adds to the tough job of settling the late rock star’s estate. 

Just a few hours after signing with Primary Wave in August of 2019, the sixty-six-year-old Jackson succumbed to heart disease, while at his home in Kansas City. However, unlike Prince, he had signed a will. Jackson did not have a wife or children. However, in another twist, rather than leaving his estate to his siblings, he bequeathed all his assets to a friend, Raffles Van Exel, who claims to be an entertainment consultant. However, he’s best known for hanging out with Whitney Houston in her final days, as well as Michael Jackson’s family. Exel was also a creative force behind O.J. Simpson’s notorious “If I Did It” book project. 

Primary Wave’s deal with Jackson is being reviewed by his own family, at least his siblings who aren’t related to Prince. They aim to contest his will. 

Prince’s accidental death by fentanyl in 2016 created one of the largest and most complicated probate court proceedings in Minnesota history. That’s because the rock star failed to draft a will. The value of his estate is somewhere between $100 million to $300 million estate and is comprised of potential music royalties. 

Prince’s heirs are unable to get their money from his estate until it is settled. Because the probate proceedings are dragging on, Primary Wave offered Prince’s heirs the chance to raise cash by selling their estate rights. These heirs are all approaching 60, and like Jackson wanted to enjoy life now, rather than wait for the process to be finalized. The siblings, by that time, may be too old, sick or dead to enjoy their inheritance. 

Primary Wave tried to get at least three of Prince’s siblings — Sharon, Norrine, and John Nelson, to sell their estate rights. However, the three refused and said in a recent court filing that they are concerned that Primary Wave will use its deep pockets to their detriment. The company’s involvement would only lead to more delays and tensions, the siblings said in a letter directly to the probate judge. With the case draining their “limited resources,” the three explained that they are unable to pay legal counsel in this case and are representing themselves. 

The terms of Primary Wave’s deals with Tyka Nelson and Alfred Jackson are private. However, the company has been asserting its rights in Prince’s probate case. A 2019 court filing said that the company says it “stands in the shoes” of the two heirs. 

Reference: StarTribune (February 22, 2020) “Death of Prince heir complicates estate settlement even more” 

Mark Twain’s Estate Plan Went South, Despite His Efforts

Mark Twain was right. He passed away one day after the comet’s closest approach to earth. A month later, his last will and testament was admitted by a Connecticut probate court appointing three friends as executor trustees to administer his estate. According to the article “Who will advocate for your estate?” appearing in 83 degrees, his choices turned out to be a terrible mistake.

Twain thought long and hard about his estate. He selected a railroad executive, a businessman and a banker to be his executors. He had two concerns: to protect his only child and sole heir, Clara Clemens, and to keep his money in the family.

He understood the complexity of his estate, which included manuscripts, stocks, bonds, copyrights, real estate, book deals and the management of The Mark Twain Company. He also knew that his daughter was a spendthrift. The three executors, he thought, would advocate for him and protect his daughter.

His trust specifically directed quarterly income payments to Clara, “free from any control or interference from any husband she may have” because of her tendency to marry, divorce and remarry.

However, three executors were not enough. One died, another quit under duress and the third was forced to resign. Without having named perpetual successor trustees to implement Twain’s wishes, the estate was up for grabs. Clara remarried and her next husband borrowed $350,000 against the estate. Clara then disinherited her own daughter before dying. This promoted Nina to file an undue influence lawsuit against her stepfather. A probate judge eventually awarded Clara’s second husband 65% of Twain’s estate for life.

How was it possible that this happened? Who was looking out for Mark Twain’s wishes? Sadly, no one.

Whether estates pass via a last will and testament or revocable trust, selecting the right executors and trustees—and naming successor executors and trustees–is a key step to a successful estate plan. Our heirs today include minor children, grandchildren, stepchildren, half-siblings, dysfunctional relatives and ex-spouses. The challenges they present to executors and trustees have only become more complex, since Twain’s time.

Twain had one heir, and he was aware of her weaknesses. He planned right, but selected the wrong individuals to be his executors. They were not up to the task of managing his complex estate and his daughter’s life decisions. This is a case where a professional executor and trustees would have likely been a better option.

Speak candidly with your estate planning attorney about your potential executors and trustees. Will they be able to manage the necessary decision making and personalities in your family? Consider whether an impartial and trustworthy professional might be a better option.

Reference: 83 degrees (August 27, 2019) “Who will advocate for your estate?”