November 29, 2007

Larry King and Life Insurance Settlements

Suspenders-loving serial groom Larry King was in the news recently, in a Wall Street Journal article on life insurance settlements. The article can be found here.

Note that the type of life insurance settlement mentioned in the article is not the same as a viatical settlement, which was a concept that became popular about a decade ago. Viatical settlements were used in cases of terminally ill individuals (such as individuals with AIDS), to free up money for treatment, etc.

By contrast, life insurance settlements are used by individuals who are not terminally ill, individuals who have existing policies on which they no longer want to pay the premiums.

By the way, The Smoking Gun has a copy of Mr. King's complaint here. Slate's Timothy Noah offers commentary in an article entitled "Larry King, Sucker." Can you guess Mr. Noah's position?

Posted by Joel A. Schoenmeyer | | Email This Post

Posted In: Estate Plans of the Rich and Famous , Insurance

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November 29, 2007

More on Missing Persons and Probate

A few things to follow up on the Steve Fossett case:

1. Eric Zorn of the Tribune discusses the case and the law, and quotes yours truly, here.

2. Juan Antunez weighs in with a nice post here about Mr. Fossett and how Florida law deals with this issue.

3. One other section of the Illinois Probate Act applicable in cases involving individuals missing and presumed dead is section 24-5, which makes potential beneficiaries in these cases post a surety bond (essentially an insurance policy) of twice the value of the property they are to receive. This is done so that, if the person (Mr. Lazarus?) does show up alive and well, he or she can get his or her property back. If the person's probate assets (i.e. the assets owned by him in his own name) were extensive, then the cost of premiums on this bond might be pretty high.

4. Slate's Explainer column weighs in here.

Posted by Joel A. Schoenmeyer | | Email This Post

Posted In: Probate - Illinois Law

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November 28, 2007

The Dangers of Powers of Attorney

Good article in this morning's Wall Street Journal entitled "How to Ensure Relatives Don't Rip You Off." It's available here (registration may be required).

People have a visceral reaction to things like probate and guardianships, assuming that they are a waste of time and money. A court process may take up time and money, but it also can provide protections that non-probate mechanisms can't. If you pick the wrong executor or guardian, the court will protect your interests and make sure this person is doing his or her job correctly. If you pick the wrong agent under your power of attorney, you may wake up and find that your estate has been looted, with very little ability to get your assets back. Ditto with picking the wrong trustee.

The solution is not to forego estate planning -- rather, the solution is to think very carefully about who should act as your fiduciary and, if necessary, to impose checks and balances on this person.

Posted by Joel A. Schoenmeyer | | Email This Post

Posted In: Powers of Attorney and Living Wills

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November 27, 2007

The Case of the Missing Fossett

Steve Fossett's Wikipedia page describes him as "an American aviator, sailor and adventurer" who "made his fortune in the financial services industry and is best known for many world records including five nonstop circumnavigations of the Earth: as a long-distance solo balloonist, as a sailor, and as a solo flight fixed-wing aircraft pilot." In other words, Mr. Fossett is a millionaire version of those folks who try to set Guinness World Records by doing the lindy hop for hours on end, growing long fingernails, and smoking 100 cigarettes at a time.

Or maybe Mr. Fossett WAS an upscale version of those folks. Mr. Fossett has been missing since September 3rd, and his body hasn't yet been found. What is a family to do in this situation? This Chicago Tribune article indicates the answer -- asking a probate court to issue an order that the individual did in fact pass away. I blogged about the portions of the Illinois Probate Act allowing this here.

Posted by Joel A. Schoenmeyer | | Email This Post

Posted In: Probate - Illinois Law

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November 26, 2007

Estate Status and Multiple Probates

I previously blogged (here) about how Cook County probate records are now accessible online. This makes it easy to check whether a probate estate has already been opened for an individual. That's important, as it can save time and money. I recently opened an estate for a deceased individual, and just received a call from an attorney who is ALSO planning to go to court to open an estate for the same individual. That's a waste of time and money that could be avoided by a quick check online. (Even better: having family members who check with each other to coordinate things like probating mom's estate.)

Posted by Joel A. Schoenmeyer | | Email This Post

Posted In: Probate - Illinois Law

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November 26, 2007

Wills for Heroes

This month's CBA (Chicago Bar Association) Record has a short note about a good cause, called "Wills for Heroes." This is a pro bono program where attorneys write Wills for firefighters (and other first responders) and their spouses at no cost. There's evidently a Wills for Heroes Foundation, and the Young Lawyers Section of the CBA has started participating, beginning with the Hoffman Estates Fire Department. Interested attorneys can contact the CBA here.

Posted by Joel A. Schoenmeyer | | Email This Post

Posted In: Practice Points

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November 26, 2007

Sorry...

for the lack of recent posting. I've been busy working on an article, which I hope to finish (and get published) soon, while also dealing with pneumonia(!) and applying to business school(!!).

Posted by Joel A. Schoenmeyer | | Email This Post

Posted In: Weblogs

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