Attend Coaching Sessions and Web Seminars, Podcasts and more
BlogsTrial and Heirs
Steve Jobs Understood Estate Planning Complexities, Too
By Danielle and Andy Mayoras
October 11, 2011
¦
Advertisement
Soon after the tragic news broke of the passing of Steve Jobs, Apple co-founder and innovator extraordinaire, people began wondering what would become of his fortune. Forbes recently estimated Jobs’ wealth at $7 billion. According to legacy expert attorneys Andy and Danielle Mayoras, it appears Jobs had his estate planning act together.
ABCNews.com recently interviewed Danielle Mayoras on this very topic. It reported how Jobs, the largest single shareholder of Disney (which of course owns ABC News), has received $242 million in Disney stock dividends alone, since 2006. How much is his Disney stock worth? $4.4 billion, for 138 million shares, accounting for 7.4% of all Disney shares.
As Danielle pointed out in the interview, usually people with that much wealth do the proper estate planning, including using living trusts, charitable bequests and more. Not only does this keep their affairs private, it can help minimize estate taxes. Topping out at 35%, the current estate tax laws — while much lower than in years past — will obviously take a big bite out of Jobs’ family fortune. That comes out to almost $2.45 billion in taxes, if Jobs did not do the proper planning.
Ultimately, we are unlikely to ever discover the full extent of planning Jobs did to minimize his taxes. When living trusts are used the right way — and assets are funded into them before death — families are protected by privacy. Wills must pass through probate court to work, which means they are public record. Trusts, on the other hand, when properly funded before death, remain out of the public eye, unless there are problems, like a lawsuit.
Reuters reported that Jobs did use living trusts. Real estate records in California show that in March, 2009, which was about two months after Jobs took his second leave of absence from Apple, Jobs and his wife transferred three real estate properties into two different trusts. This means he funded those trusts with that real estate. Funding a trust is key to using it correctly.
Does this mean Jobs funded all of his assets, such as his Disney stock, into his trusts too? We don’t know. But with someone as intelligent — and private — as Jobs was, the smart money is on him having done so. The only way we’ll find out for sure, though, is if someone files his will in probate and opens his estate. If that happens, it would be reported what assets have to pass through probate, which would only include assets that were not funded into the trusts during his life. Jointly-held assets, such as joint bank accounts with his wife, and assets with beneficiary designations, like insurance, also would not have to pass through probate in most cases.
The proper estate planning is extra important when their are complicated family dynamics, such as second-marriages or with siblings who do not get along. In Job’s family, his first child was born out-of-wedlock to another woman before his marriage, so doing the right legal planning was even more important for him. A child does not have an automatic right to share in the inheritance, so how much Jobs chose to leave her — and his other children — was up to him. When people don’t make their intent clear in their estate planning documents, families often fight over their wishes, especially when there are children of different parents involved.
So many rich and famous people fail to do the proper estate planning. Michael Jackson, James Brown, Gary Coleman, Sonny Bono, Jimi Hendrix, Martin Luther King, Jr., and Stieg Larsson are just a few that we have written about through Trial & Heirs, to help teach people about doing the proper planning to protect their family fortunes.
It’s refreshing to write about a celebrity who apparently did things right.
Barbour is a old brand come from UK. In European Barbour Jacket just as you have an admission tickets to enter high society. And the Barbour coat still won Queens Award for their excellent quality. Welcome to barbour store online http://www.barbourjk.com/ .Now barbour store will show you many barbour wax jackets style which you can use in any situation. Give one barbour quilted jacket and it will bring you convenient life and outstanding feeling. There are variety of mens jacket, barbour ladies jacket and Kids jackets here. The high quality barbour international jacket you can't miss.
Legacy expert attorneys Danielle and Andy Mayoras say the saga surrounding the estate of one-time child TV star Gary Coleman provides yet another learning opportunity for advisors and their estate planning clients.
Legacy expert attorneys Danielle and Andy Mayoras say advisors can point to the bigamy scandal surrounding actress Reese Witherspoon’s family as yet another example of why it’s so important for clients to have their estate planning and legal affairs in order.
Legacy expert attorneys Danielle and Andy Mayoras say even the most savvy and successful entrepreneurs are counting on their financial advisors to protect their life’s work and legacy after they’re gone. Are you up to the task?
Legacy expert attorneys Andy and Danielle Mayoras say your clients have names and reputations that will live on after they’re gone. The estate planning guidance you provide them now will ensure their legacy and wishes are protected for generations to come.
Legacy expert attorneys Danielle and Andy Mayoras say the legal battle between two feuding CEOs provides yet another example of why it’s so important for advisors to make prudent succession planning decisions as their firms grow and evolve.
Legacy expert attorneys Andy and Danielle Mayoras say that contrary to preliminary reports, British songstress Amy Winehouse did not have a will in place at the time of her death—an estate planning mistake that advisors and their clients can’t afford to make.
Legacy expert attorneys Danielle and Andy Mayoras say planners with clients whose families are involved in this type of legal struggle over an elderly parent should keep in mind that there are two sides (at least) to every story, and allegations of a parent’s care or finances being compromised are not always easy to prove.
Legacy expert attorneys Andy and Danielle Mayoras – along with everyone else – have now had a chance to take a look at Whitney Houston’s will. That the deceased music superstar opted for a will rather a living trust points to some shortcomings in her overall estate planning strategy.
Legacy expert attorneys Andy and Danielle Mayoras say the pop star's been very busy lately but it remains unclear what – if any – decisions she’s making herself and illustrates the importance of informed legal and estate planning regardless of your station in life.
Legacy expert attorneys Andy and Danielle Mayoras say it won’t be long before the recently deceased pop star’s estate planning efforts – or lack thereof – will come to light.
John Goodman's lawyer states that the adoption was done to protect Goodman's children, not to shield assets from the family of the slain driver who is suing him. While Goodman, of Palm Beach, has been bashed across the country for his legal maneuver, it actually makes sense from a probate law perspective.
Legacy expert attorneys Andy and Danielle Mayoras say most of music diva Whitney Houston’s purported financial woes could have been averted had she and her family sought out and received professional financial and estate planning advice before things turned sour.
Legacy expert attorneys Andy and Danielle Mayoras say it’s not too late to help your clients tackle an issue that should be among their most important resolutions in the New Year: estate planning.
Legacy expert attorneys Andy and Danielle Mayoras say the billonaire's case serves as a reminder that too many people make the estate planning mistake of relying on verbal or written promises that contradict their will or trust.
It took years for the great civil right activist’s final wishes to finally be honored, something that legacy expert attorneys Andy and Danielle Mayoras say could have been resolved much sooner had she done a better job – or had better advice and professional assistance – with her estate planning.
Legacy expert attorneys Andy and Danielle Mayoras say there’s no doubting the greatness of Martin Luther King Jr. However, he made a mistake common among millions of Americans: He didn't have a will.
Legacy expert attorneys Andy and Danielle Mayoras say events surrounding his estate have been anything but consistent with his musical legacy. In the 30 years since his death, his estate has seen far too many court fights, lawsuits and money-grabs to count. And that legacy of fighting over money doesn’t seem likely to end any time soon.
Legacy expert attorneys Andy and Danielle Mayoras say the intrigue and legal wrangling surrounding the copper heiress’s $400 million estate serve as a stark reminder that everyone -- wealthy or not -- needs to get proper estate planning advice from their financial advisor before it’s too late.
Al Davis, the long-time principal owner and general manager of the Oakland Raiders, died last week at age 82. As legacy expert attorneys Andy and Danielle Mayoras point out, estate taxes are huge concern for NFL owners and it appears that Davis, unlike other professional sports owners, made the necessary arrangements to keep the franchise under his heirs’ control.
An auction of the deceased actor’s memorabilia, clothes and other property recently garnered more than $1 million but none of his five children, including actress Jamie Lee Curtis, have yet to receive a dime. And, from most indications, that’s exactly the way the “Some Like It Hot” star wanted it.
Celebrities are not the only ones to make mistakes with their estate planning. It happens to people all across the country on a regular basis. According to legacy expert attorneys Andy and Danielle Mayoras, one of the most common estate planning mistakes that people make is joint ownership.
Now almost 30 years old and seemingly back at the top of her game, why would the pop superstar still need her father to serve as her conservator? One company claims it’s simply a ploy to duck a deposition in a multimillion-dollar lawsuit.
The so-called “Godfather of Soul” passed away on Christmas Day 2006, and generously left his $100 million fortune to a special trust set up to help poor and needy children. Yet, four-and-a-half years later, not one child has seen a cent. Why?
Russell Armstrong was the 47-year old husband of "Real Housewives of Beverly Hills" cast member Taylor Armstrong. Tragically, Russell committed suicide on Aug. 15, about one month after Taylor had filed for divorce. His untimely death and the subsequent squabbling by surviving relatives highlight the importance of estate planning whether you're famous or not.
Zsa Zsa Gabor has never been one to shy away from the limelight. But when does pursuing fame cross the line for a 94-year-old? That point may have come this week, when her husband of 25 years told CNN that he had started the process of donor matching and blood work so he could turn Zsa Zsa into Ma Ma.
One of the challenges that we have as professionals is motivating our clients to do their estate planning. Our new television special titled "Trial & Heirs: Protect Your Family Fortune!" debuts tonight and we think it will help motivate your clients to take the necessary estate planning steps that many have put off for far too long.
It’s shocking how many rich and famous people make mistake and after mistake, which often leads to heirs fighting over inheritances. But, it’s not only the rich. Everyday across the country, people from all walks of life make the exact same mistakes time and time again. The only difference is the dollar amounts that they’re fighting over.
Civil rights icon Rosa Parks passed away in Detroit at the age of 92 back in 2005. Almost six years later, her legacy is still tied up in a lengthy court battle. The case features allegations of abuse, cronyism and corruption by the probate judge as well as the two lawyers he appointed to oversee the estate and trust.
Ryan O'Neal is at it again. He and Craig Nevius, a Hollywood producer who used to work closely with Farrah Fawcett, are in the midst of more legal fighting against one another.
Celebrity heirs fighting over the estate is far from uncommon but it is unusual when an ugly court battle starts before the celebrity even dies. That certainly has been the case with the Dennis Hopper estate.
No, it can’t be. Has the 15-year saga started by Anna Nicole Smith, as she tried to get money from the estate of her deceased husband, really come to an end?
Leona Helmsley, widely regarded as the “Queen of Mean” before she died at age 87 in 2007, left behind a fortune valued by some to be worth $40 to $80 billion. She earmarked twelve million dollars to take care of her dog, Trouble, until the Judge reduced it to a paltry $2 million.
While Whitney Houston was recently admitted to rehab, she has one other big concern that she still has to face - her no-holds-barred court fight with her late father’s widow.
Irvin Feld was a rock-and-roll promoter who purchased “The Greatest Show on Earth” in 1967. He created a promotion company to manage the Ringling Bros. Circus, along with Disney on Ice and monster truck shows, but none of his shows have been as eventful as what’s happened between his two children the last few years.
The Michael Jackson Estate has featured fireworks since very shortly after Michael died on June 25, 2009. His mother, Katherine Jackson, was not happy about non-family members, including attorney John Branca and music executive John McClain, being named as executors of his estate. So she hired lawyers and challenged the executors in probate court. They fought … and fought … and fought.
FEED
1 Comments
Barbour is a old brand come from UK. In European Barbour Jacket just as you have an admission tickets to enter high society. And the Barbour coat still won Queens Award for their excellent quality. Welcome to barbour store online http://www.barbourjk.com/ .Now barbour store will show you many barbour wax jackets style which you can use in any situation. Give one barbour quilted jacket and it will bring you convenient life and outstanding feeling. There are variety of mens jacket, barbour ladies jacket and Kids jackets here. The high quality barbour international jacket you can't miss.
Posted by: barbour | January 19, 2012 9:03 AM
Report this Comment
Add Your Comments...