The Probate Lawyer Blog

It's a growing Hollywood trend ... tens of millions of dollars gone?  Sue the guy who handled your finances!  But, legally, who should shoulder the blame -- and more critically, pay the price -- when a celebrity once worth hundreds of millions sees most of it disappear?  And what lessons are there for those of us whose net worth hasn't quite hit eight or nine figures? 

Johnny Depp is the poster child for this dilemma after his reported net-worth of $200 million dwindled to a small fraction of what it once was.  But Depp is far from alone.  This summer, Alyssa Milano filed a $10 million lawsuit against her former business manager claiming financial ruin.  And Lisa Marie Presley recently announced, through her attorney, that she is in the same boat, preparing to sue her former business manager for $100 million in losses.

The Depp lawsuit appears to be the most heated at the moment.  Recently, Depp's former financial managers and advisors added a new lawyer to an already-ugly legal battle by filing to foreclose against two of Depp's houses, including his primary residence.  The lawsuit alleges that when Depp was in deep financial trouble, his financial management company, TMG, came to his rescue with a five million dollar loan.  TMG says it loaned the money on a short-term basis, to pay off another bank loan that was about to come due in late 2012.  Depp agreed to sell off some his assets, including his beloved yacht (which he purchased for $10 million and spent another $8 million renovating) and repay TMG shortly thereafter, according to the lawsuit.

A mere five days after the Hollywood acting legend passed away in his sleep at the age of 93, the family of Mickey Rooney was set to appear in a Los Angeles courtroom to fight over where he should be buried. Just hours before the court hearing, the estate reached a settlement — hopefully putting an end to the troubling feud that surrounded Rooney’s family the last few years. 

On one hand, Rooney’s family fight should not be viewed as surprising. What else would be expected when a Hollywood icon dies with a new will disinheriting all nine of his children (from eight different marriages), his wife, and all of his grandchildren and great-grandchildren? But a closer look shows how this family feud was far from the typical inheritance squabble we often see when famous people die.

Mickey Rooney‘s estate is reported to be worth a mere $18,000 at this point. While his successful acting career spanned more than 80 years, most of Rooney’s starring roles occurred during the movie industry’s “old studio system.” So Rooney’s estate is not in line to receive much in the way of royalties, despite the fact he was the highest-paid actor of the late 1930′s to early 40′s.

The New York Department of Corrections decided recently to release Anthony Marshall from prison, only eight weeks into his one-to-three year prison sentence for committing fraud and a host of other crimes in taking advantage of his elderly mother, Brooke Astor.  Given how few crimes of financial exploitation of the elderly are actually prosecuted, it's a sad message to send. 

The New York District Attorney's office spent six months in trial and many millions to prosecute Anthony Marshall and his accomplice, attorney Francis X. Morrissey Jr., in 2009.  Facing enormous odds trying to prove an 85-year old multi-millionaire illegally exploited his mother, they secured a conviction for 14 counts out of 16, for financial exploitation, fraud, and a host of related crimes.

Immediately, Marshall began raising legal challenges and appeals pleading poor health and his advanced age as a reason to avoid the consequences of his crime.  Judge after judge rejected each one, finally landing the criminal in jail on June 21st.

It’s now, officially, the Estate Fight That Refuses To Die!  The quest for money started by Anna Nicole Smith — the former Playboy Playmate, stripper, TV reality star, and the true love of 89-year old Texas oil tycoon, J. Howard Marshall — is not over.  Despite almost 18 years of litigation, two trips to the United States Supreme Court, and untold millions of dollars spent on legal fees, the Anna Nicole Smith case lives on.  

Anna Nicole Smith (a/k/a Vickie Lynn Marshall) sued after her elderly husband died, following their 14-month marriage.  She was not happy being left out of his massive ($1.6 billion) estate.  She blamed one of his sons, Pierce Marshall, who inherited everything.

The probate case started in Louisiana and then moved to Texas.  Smith sued there, but was forced to file bankruptcy in California.  When she did, Pierce sued her, filing a claim in bankruptcy court.  He claimed Smith defamed him by telling the media he committed fraud in managing his father’s estate. Smith counter-sued, alleging he really did commit fraud.  She also requested millions of dollars based on what, she claimed, J. Howard would have given her if Pierce had not wrongly interfered and stopped it.

Not many people -- even celebrities -- can claim a record as impressive as Kim Kardashian and Kris Humphries.  The marriage:  72 days.  The divorce:  536 days.  But, it's finally over.  

And according to reports, it was Kris Humphries who caved at the last minute to settle the case, just weeks ahead of the May 6 trial date.  Per TMZ, Humphries had been demanding either an annulment based on fraud or a $7 million pay-out.

So why the change of heart for Humphries?  For one, it's seldom easy to prove a case of fraud in court.  It's easy to claim fraud, but in divorce, civil, and probate cases alike, actually finding the goods to prove fraud is not easy.  Humphries' lawyers tried, conducting many depositions and digging through extensive records.  Reportedly, they did not find enough proof that Kim Kardashian tricked Humphries into the marriage or staged it only for publicity.

Michael Jackson's estate faced a tumultuous beginning three years ago after he unexpectedly died.  First his mother, Katherine, and then his father, Joe, filed challenges against the executors of his Estate, John Branca and John McClain.   Katherine backed off her attack and Joe's case was thrown out of court.  

Since then, the Estate has been relatively peaceful, at least on the surface.  Branca and McClain have led the Estate from a debt-ridden start to enormous profits.  They began around $500 million in the red when the King of Pop died.  Three years later, the Estate reported $475 million in profits.

Of course, Branca and McClain have enjoyed a huge financial windfall from this as well.  They have a special arrangement, blessed by the probate judge who oversees the estate, allowing them to earn 10% from most deals they cut for the Estate.  Branca and McClain are now facing a new attack over their handling of the Estate.

Several of Michael's brothers and sisters -- including Janet, Randy, Tito and Jermaine -- signed a letter that they sent to Branca and McClain accusing the pair of fraud, forgery, exploitation and abuse.  The letter was published on a celebrity gossip website recently.