Succession Planning Feed

Mark Zuckerberg And His Charitable Plan Deserve Praise, Not Scorn

As if founding Facebook  and reaching #16 on Forbes’ ranking of the world’s billionaires wasn’t impressive enough, Mark Zuckerberg – along with his wife, Dr. Priscilla Chan — is out to change the world for generations to come.  But not everyone thinks his motives are pure.   Zuckerberg and Chan

Zuckerberg and Chan announced their decision to transfer 99% of their Facebook stock to a new charitable-based venture called the Chan Zuckerberg Initiative.  This will do this through a new limited liability company, with the stated purpose to “to join people across the world to advance human potential and promote equality for all children in the next generation.”  The stock will be handed over throughout their lifetimes, with no more than one billion dollars in stock gifted or sold annually for the next three years, according to a recent Facebook filing with the SEC.  Zuckerberg and Chan write that the value of the stock, presently, is about $45 billion, but that will likely grow over time considering their youth (Zuckerberg is 31; Chan is 30).

Zuckerberg and Chan believe that they have a “moral responsibility to all children in the next generation.” They point to society’s obligation to help future lives. By explaining their motivations to their newborn daughter, Max, through an open letter for the public to read on Facebook, Zuckerberg and Chan seek to encourage others to follow their charitable lead. Many public figures, like Warren Buffett, Bill and Melinda Gates, and others, quickly applauded the move.

But some questioned Zuckerberg and Chan’s charitable intent or even gone so far as to accuse them of tax evasion.   They claim that the tax benefit of donating appreciated assets, like Facebook stock, in a manner that avoids capital gains taxes on the appreciation harms society rather than benefiting it. They also point to the choice to use a limited liability company rather than a charitable foundation as proof of Mark Zuckerberg’s less-than-noble intent.

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How The Supreme Court Gay Marriage Ruling Impacts Estate Planning

As gay, lesbian, and other proponents of same-sex marriages celebrate the United States Supreme Court's landmark ruling in Obergefell v. Hodges, millions of Americans will now be eligible for dramatically different legal rights upon the death or disability of a life partner than were previously possible.  DeBoer and Rowse

In fact, in the field of estate planning -- including planning for not only what happens when someone dies but also when someone becomes incapacitated -- the landscape in the LGBT community has just changed.  Gay and lesbian couples now have a level playing field, equal to opposite-sex couples.

The legal implications are far-ranging, from symbolic, to monetary, to life-changing.  In fact, the Supreme Court opinion in Obergefell illustrates this by sharing the stories of three sets of plaintiffs involved in that case.

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Lessons Learned From The Tom Benson Competency Battle

As owner of the New Orleans Saints and Pelicans, Tom Benson, is used to being in control. He worked his way up from humble beginnings, starting as a used-car salesman, to owner of multiple car dealerships, banks, real estate, and a television station. Of course, Benson is most well-known for owning the NFL’s Saints franchise, which he purchased in 1985. Since then, he has successfully managed the Saints through the lows of Hurricane Katrina to the highs of winning the Superbowl. In 2012, Tom Benson added the NBA’s Hornets (now named the Pelicans) to his stable of businesses. Forbes estimates his net worth to be just shy of $1.9 billion.   Tom Benson

For a man with that much success and business acumen, there can be no doubt that one of the things he would enjoy least is someone suggesting he’d lost his wits. Especially when that someone is his hand-picked protégée and granddaughter, along with his daughter and grandson. And even more so when he is brought into court through a legal proceeding about whether he is competent enough to make even basic decisions about his person or property. Add in the media scrutiny that follows for a man of his stature and it is not surprising that Tom Benson is very unhappy.

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Could Feud Over Saints Owner Tom Benson Happen In Your Family?

Yes, Tom Benson has a great deal more money and power than most of us.  How much?  Try $1.9 billion, according to the annual Forbes rankings.  Indeed, there are only 350 richer people in the whole country.  The successful owner of the NFL’s New Orleans Saints and NBA’s New Orleans Pelicans, Benson built a wide-ranging empire of car dealerships, banks, various real estate holdings, and a television station.  He still actively participates in running his businesses — most of all his beloved Saints.  Tom-Benson-Saints-300x203

But for all of his wealth, prestige, and status, Tom Benson is in the midst of the same type of probate-related court battle that entangles many elderly individuals in our country.  Some of Benson’s heirs do not believe the 87-year-old is mentally competent to make his own decisions any more.  They are seeking to have him declared legally incompetent and protect him from what they claim is undue influence.

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Celebrity Legacies: John Wayne Heirs Profit From The Duke Legacy

The popularity of the Duke has never waned. But are John Wayne's heirs going too far in profiting off of his legacy? And what does Duke University have to say about it?  John_Wayne_portrait

This is installment #8 of our Estate Planning Lessons From The Stars series, which is based on the Celebrity Legacies TV show for which we provide commentary as the estate legal experts. See other articles in the series here.

With a movie career that spanned fifty years, there is no disputing that John Wayne is one of the most successful and treasured actors of all times. He was in the top ten list of actors whose films generated the highest box office gross earnings for an astonishing 25 years in a row. The Duke also holds the record for most leading movie roles of all time - 142. To this day, he remains in the top ten list in the annual Harris poll of favorite Hollywood actors and actresses. In fact, the American Film Institute ranked Wayne as number 13 on the list of top male actors of all time.

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Wife of Donald Sterling Used Family Trust To Cut Him Out

It seems that everyone wanted Los Angeles Clippers owner Donald Sterling to sell the team, after his racist remarks about Magic Johnson and African Americans became public knowledge.  The NBA Commissioner, owners, players, Clipper fans, and Sterling’s own family did everything in their power to force him out.  Last week, the news broke that Sterling’s estranged wife, Shelly Sterling, reportedly accomplished what everyone wanted — an agreement has been reached for the Clippers to be sold for a reported $2 billion dollars to former Microsoft CEO Steve Ballmer.  Sterling

But how did Shelly manage to do this without going to court — which would undoubtedly air Sterling family dirty laundry that no one in the Sterling family or the NBA would want to see made public?

Reportedly, Shelly Sterling relied on a fairly standard provision in the Sterling family trust, which owns and controls the Sterling’s interest in the Clippers.  According to ESPN and others, Shelly and Donald were co-trustees with equal authority over their trust.  This gave them equal say in running the Clippers, including when to sell the franchise.  But, after the recent events, Shelly had her husband evaluated by doctors to determine if he was mentally competent to remain serving as one of the co-trustees.

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The Ongoing Feud of The National Enquirer Heirs

Perhaps this tale should be unsurprising considering it involves heirs of the tabloid fortune built around the concept:  ”Inquiring minds want to know!”  Two of the heirs of the tabloid founder, Generoso Pope, have engaged in dueling lawsuits for years — culminating in allegations of kidnapping, fraud, extortion, and even an arrest for criminal stalking.  All between a son and his mother.  National-enquirer

Generoso Pope was the founder of the National Enquirer.  He died in 1988, leaving behind a will and trust that called for the company to be sold. Generoso’s youngest son, Paul Pope, desperately wanted to buy and run the tabloid, but was unable to raise enough money.  Reportedly, it sold for $412.5 million, with $200 million going to Lois Pope — Generoso’s widow and Paul’s mother — and $20 million for each of the four children, including Paul.

According to Paul, about $186 million from the estate funded a marital trust created by Generoso.  As would be typical of a marital trust, Lois was to receive all of the income from the trust while she was alive, and the rest would pass onto the children when she died.

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