Music legend Ray Charles established a foundation prior to his death in 2004. The foundation supports youth education programs as well as research and education for the hearing impaired. The foundation recently filed a lawsuit against the children of Ray Charles alleging that the children are in violation of agreements they made with their late father prior to his death.

According to reports, each of Charles’ 12 children signed agreements with their father two years prior to his death agreeing to relinquish and waive any future claims to Charles’ estate in exchange for individual trusts set up by Charles and funded with $500,000 a piece. The current controversy appears to stem from allegations that, despite the agreements, Charles’ children have sent copyright termination notices to various music publishers claiming to be the owners of 51 of Ray Charles‘ most famous songs, including “I Got a Woman” and “What’d I Say.” The foundation claims that it is the rightful owner of the songs and the children have no legal standing to send the notices.

The foundation depends on royalties from Charles’ songs in order to fund the foundation’s activities. By sending the termination notices, the foundation contends that the children have created a “cloud” over ownership of the songs and, therefore, diminished the value of the songs.

A court will eventually decide the issue; however, as with many newsworthy estate battles, this one reminds all of us of the importance of creating a thorough estate plan that will withstand a legal battle should one come to pass.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

Although it is not common to suddenly receive a telephone call saying that you are the executor of a Grafton estate if you were unaware of the appointment, it does happen. For obvious reasons, it is best to discuss the appointment of executor with the person who you plan to nominate before including them in your Last Will and Testament. If someone created a Will and failed to discuss your appointment with you, now what do you do?

Although your first instinct may be to panic — don’t. The bottom line is that it remains your decision whether or not to accept the appointment. If you decide that you do not wish to serve as the executor, you can simply decline the appointment and the court will appoint someone else.

Assuming that you decide to accept the appointment, there are three important steps that you need to take immediately. Securing the decedent’s assets is the first of these steps. While a complete inventory and valuation will eventually need to take place, securing them to the best of your ability should be done now.

Petitioning the appropriate court to probate the decedent’s estate must also be done. The original Will should be filed along with the petition to probate.

Retaining legal counsel, as well as other professional assistance, should also take place shortly after you decide to accept the appointment. As long as he estate has sufficient assets, the cost of retaining legal assistance typically comes out of the estate assets.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

For anyone who has never been through the probate process after the death of a family member or loved one, it can seem confusing and complicated. One question that is commonly asked is “what happens to the decedent’s property?” How the property left behind by a decedent is handled during the probate process can depend on a number of factors; however, there are some common ways in which property is disposed of during probate that may help you understand the process a little better.

Although most property has to go through the probate process before it is distributed to anyone, there are some types of property that may transfer immediately upon death. Life insurance proceeds, for example, generally go directly to the beneficiary upon proof of the death of the policy holder. Accounts that are held as “pay on death” are also transferred automatically to the beneficiary.

If the decedent left behind a valid Last Will and Testament, the specific gifts mentioned in the Will must be honored is possible. Although these assets will not be transferred until the probate process terminates, they will go directly to the beneficiary of the bequest. For instance, a bequest of the decedent’s jewelry to her aunt will take care of those estate assets.

Any estate assets that are not transferred automatically, or are not part of a specific bequest, will need to be liquidated during the probate process. The proceeds will then be distributed according to the terms of the decedent’s Will, or in accordance with the state’s intestate succession laws if no Will was left behind.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

The world lost yet another young star last July when singer Amy Winehouse died at the age of 27 from alcohol poisoning. Although young, Winehouse’s deep soulful voice shot her to the top of the music scene at an early age. As a result, she was thought to have left behind a sizeable fortune. She was also reported to have left behind a Last Will and Testament. Early reports were that she had even had the presence of mind to update her Will after her divorce from ex-husband Blake Fielder-Civil. It appears as thought those reports were inaccurate.

Recent reports, based on filings in probate court, indicate that Winehouse died intestate. Winehouse never executed a Will. Since Winehouse died intestate, her parents will inherit her entire estate. Winehouse allegedly still had a close relationship to her ex-husband. In addition, she was said to be close to her older brother, Alex. Whether or not Winehouse intended for either of them — or anyone else — to receive anything form her estate we will never know. By not executing a Last Will and Testament, she lost out on the opportunity to leave anyone anything.

Winehouse provides yet another example of why estate planning is so important and why it should start at an early age. You never know when you will make your fortune — or when you will die. Your estate plan is the only chance you have to decide who will inherit your estate.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

When paired with a caning partner, law enforcement officers frequently form a very deep bond with the dog. The same can be said of military personnel who are partnered with a canine as evidenced by a recent story that made headlines across the country.

Former Marine Cpl. Megan Leavey, 28, and Sgt. Rex, her canine service partner completed over 100 missions together during two six-month tours in Iraq. Upon returning home in 2007, Leavey was separated from Rex but found that the bond formed while in Iraq caused her to miss Rex immeasurably. Leavey then waged what became a five year long battle to try and adopt Rex. The adoption of a military service animal is not easy to accomplish; however, Leavey was determined. With the help and support of over 21,000 signatories of an online petition, and that of a U.S. Senator, Leavey received the news last week that her adoption petition was granted, meaning she and Rex will be reunited soon.

Chances are that adopting your beloved family pet was somewhat less difficult than adopting Rex; however, your love for your pet may be just as deep. If this is the case, be sure to make arrangements for your pet when you create your estate plan. A pet trust can be set up that will allow you to be secure in the knowledge that your pet will be taken care of in the event of your death.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

In today’s digital age, you can find almost any document on the Internet, including legal forms. For this reason, many people think that there is no reason to consult with an attorney prior to completing a Last Will and Testament. If the form can be found online, why spend the money for an attorney right? The truth of the matter is that the money you save by executing a do-it-yourself Will could cost your beneficiaries thousands in the long run, or could result in invalidating your Will altogether.

Your Last Will and Testament may be the most important legal document you create during your lifetime. Your Will is your only opportunity to decide who will receive your assets, including personal, sentimental, items upon your death. Your Will also determines who will oversee the administration of your estate when you die. If you have minor children, your Will allows you the option to nominate someone who you trust to become the guardian of your children in the event of your death. As you can see, your Will includes some of the most important decisions you will make during your lifetime.

Individual states have specific laws that govern how a Will must be executed and what language is required in a Will to effectuate certain decisions. Failure to abide by the laws of the state where you live can result in your Will being declared invalid. In addition, both state and federal tax laws have a direct and significant impact on your estate. Furthermore, tax laws change on a regular basis. Do-it-yourself Will kits often have outdated, incomplete or even incorrect information which could cost your beneficiaries thousands of dollars in taxes or completely invalidate your Will, making the money you saved pointless.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

Although financial advisors and attorneys have told us for years to start estate planning early on in life, many people put it off on the theory that “if I don’t have a fortune to protect yet then why do I need an estate plan?” The answer to that question is best illustrated by a recent example. Social media giant Facebook was founded by Mark Zuckerburg and Dustin Moskovitz when the pair were still in their early 20s. Today, the pair are reportedly worth billions of dollars. Because they both created estate plans early on, they now stand to legally shift over $185 million to trust beneficiaries without paying gift taxes on the transfers. They did this by using an estate planning too known as a Grantor Retained Annuity trust, or GRAT.

Back in 2008, when both Zuckerburg and Moskovitz were both just 24 years old, they created a GRAT and used pre-IPO stock to fund the trust. A GRAT allows the grantor to fund the trust with assets of his choosing, in this case pre-IPO stock. The trust has a definite termination date, typically 5 to 15 years. During the lifetime of the trust, the grantor receives a yearly annuity. Upon termination of the trust term, the assets remaining in the trust are passed down to the beneficiaries of the trust. The key to a GRAT is to make the total annuity payments equal to the value of the assets used to fund the trust at the time of funding, plus an assumed interest rate. If the assets appreciate more than the assumed interest rate, the remainder is passed to beneficiaries with little or no gift tax obligation.

If you have been putting off creating an estate plan under the misconception that you have no need for one, now may be the time to reconsider that line of thinking.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

Life insurance can be an integral part of your Shrewsbury estate plan. On the other hand, not everyone needs to include life insurance in their estate plan. Whether or not your particular estate plan could benefit from the addition of a life insurance policy will depend on a number of factors that are unique to you and your estate. There are, however, a number of things that everyone should take into account when considering the addition of a life insurance policy to their estate plan.

• Your age and health. Life insurance is less expensive to purchase when you are younger and healthy, meaning you should be able to lock in the best rates. This is also when most people need life insurance the most — before they have other estate assets that can be passed down in the event of death.
• Know what kind you are buying. Life insurance falls into two basic types — term and whole. Term only provides a death benefit while whole life potentially earns cash value.
• Know your objective. If you only want to provide a financial benefit to a beneficiary, sticking with term insurance is likely your best bet. Talk to a financial advisor if you are considering whole life insurance. It can be a complicated investment strategy.
• Decide how much you need. This can change over the years. If you are young and single, you may only need enough to cover debts and your funeral. As you age, you should factor in what it will cost to raise your children if you die before they reach the age of majority.
• Shop around. Just as with other types of insurance policies the policy rates can vary widely. Take your time and compare rates before you commit.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

If you have been wise enough to create an estate plan, make sure you also take the time to create a funeral plan. Many people make the mistake of assuming that loved ones know what they want. Although this may be the case, your loved ones will be grieving and may not be thinking clearly. Save them additional grief and stress by putting your wishes down in writing now. Your funeral plan should be separate from your Will as your Will may not be read for days after your death. Once written down, be sure to leave a copy with the executor of your estate, your estate planning attorney and anyone else you feel needs a copy. Although each plan will be unique, consider including the following information in your funeral plan:

• How the funeral is to be paid for — We recommend an irrevocable burial trust funded with a particular type of life insurance.
• Who is to be in charge of the details. Be sure to name alternates in case your first choice is unable to take charge.
• Whether you want to be buried or cremated
• What funeral home you wish to handle the cremation or burial
• What container you wish to be used for the burial or for your ashes
• Details about a ceremony if you want one. Be specific. For example, do you want a viewing? Open casket? Video display? Wake? What type of flowers?
• Who you wish to be the pallbearers if relevant
• Where you wish to be buried or what you want done with your ashes
• If you wish a marker, include details such as what you want written on the marker
• Any specific information you want included in the obituary

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

If you are one of the many Worcester residents who has made charitable giving part of your daily life, then you should consider including your charities in your estate plan. Along with planning for your loved ones and family members in your estate plan, there is no reason that you cannot also include one or more charities as beneficiaries. Only your Worcester estate planning attorney can help you with the unique details of your estate plan; however, there are some key points to including charitable giving in your estate plan that may be beneficial to know ahead of time.

You may choose to provide a direct gift through your Last Will and Testament to the charity of your choice; however, a trust frequently offers probate and tax advantages that a direct bequest does not as well as more flexibility than a direct gift.

A charitable trust can be either a living trust or a testamentary trust.

If you establish a living trust, and distributions are to be made while you are still alive, then the trust will typically need to be an irrevocable trust.

The most common charitable trusts fall into one of two main categories — lead and remainder trusts

A Charitable lead trust provides income to a trust for a specific period of time and then gives the remainder to non-charitable beneficiaries, such as family members.

A charitable remainder trust provides income to non-charitable beneficiaries, such as family members, for a specific period of time, or life, and then gives the remainder to a charity.

A portion of the value of assets used to fund the trust may qualify as a current deduction for income tax purposes.

The amount that passes to a charity may qualify for an estate tax deduction upon your death, decreasing estate tax exposure.

You may be able to avoid paying capital gains taxes on assets that are used to fund a charitable trust.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.