Even
for Anna Nicole Smith - Where There's a Will...
By Robert
E. Bauman, JD
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February 2007
| Well,
dear folks, everyone else in creation that writes, speaks, appears, opines
or pontificates for a living, from Bill O'Reilly to his beloved New York
Times, has addressed the untimely death of the pitiable Anna Nicole Smith
-- so here goes my small effort.
I am not going
to dwell on the more outrageous aspects of this relatively young lady's
lurid lifestyle; nor on the details of her untimely demise. (May she rest
in peace.)
What caught
my lawyer's trained eye was the legal state, in which she left her daughter.
Poor little Dannielynn is just 5 months old and already the potential multimillion-dollar
prize in a paternity battle. This mess gives new meaning to the word "disarray."
If ever there
was a convincing argument for prior estate planning, Anna Nicole's death
and the so-called "last will and testament" she left behind should be a
clincher. It's a classical example why all of us should act now to avoid
such a legal swamp.
First off,
having read some of the provisions of the will, I'm wondering if it was
written in the dark by the law school's pet mascot. One of the provisions
in her will is typical in some rakish men's last will and testaments. This
provision says it seeks to exclude any "after born" children ("issue")
the bounder may have sired in his sowing wild oats. After all, such fellows
may not know just how prolific their seed has been. They may not even remember
whether, where or when they may have engaged in an act of procreation.
(These days DNA usually settles what used to be an iffy question.)
But one can
say with certainty that a woman who gives birth to child is likely to remember
the event, regardless of what state she may have been at the time. So why
did Anna Nicole's will have such an "after born" disinheritance clause?
It seems her artless drafter copied it straight out of a legal form book
without reading it.
For those loved
ones left behind by wealthy dead Americans, a will or other means of transferring
property (a trust, family foundation or joint title) is a must. (Kids,
talk to your aging parents!) Otherwise, assuming your business and other
assets are worth more than US$2 million, your family could be stuck with
a considerable estate tax burden. In fact, your family might be forced
to hand over 80% of your total estate just to pay income and estate taxes. |
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|
 The
Sovereign Society, headquartered in Waterford, Ireland, was founded in
1998 to provide proven legal strategies for individuals to protect their
wealth and privacy, lower their taxes and to help improve their personal
freedom and liberty. |
| The
Society's highly qualified contacts recommend only carefully chosen banks
and investment advisors as well as financial and legal professionals located
in select tax and asset haven jurisdictions around the world. The Society
provides advice concerning the establishement and operation of offshore
bank accounts, asset protection trusts, international business corporations
(IBCs), private foundations, second citizenships and foreign residency,
as well as practical safeguards for financial, Internet and personal privacy. |
| The
Sovereign Society stands alone in fulfilling this singular, international
offshore service role for its members. To learn more about our organization
and how you too can become a member, please click
here. |
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After 2011, the
taxable minimum will drop down to US$1 million. And these days, "millionaires"
or individuals with an entire estate (including property etc.) worth a
US$1 million or more are fairly common. That's just one more reason to
start planning your estate now.
By all means,
when you plan your estate, consider an offshore component. By taking some
of your estate offshore, the offshore assets you leave your heirs enjoy
far greater protection from domestic U.S. creditors and lawsuits. Importantly,
those assets remain highly confidential and can avoid the glare and hassle
of the American probate process. You also can pass title and wealth with
offshore vehicles such as offshore annuities or life insurance, both of
which can allow deferred taxes during your lifetime. An offshore asset
protection trust (APT) is another device that both protects assets during
life, and provides for heirs afterwards.
My guess is
that with the sordid cast of characters surrounding the prospectively "poor
little rich girl," Dannielynn may face the same sad fate of the late Barbara
Hutton. She inherited the Woolworth E.F. Hutton millions at the age of
18. At an early age Barbara lost he mother to suicide and her father to
alcoholism. Raised by a governess, she married seven times and died a relative
recluse, alone amongst her great wealth.
Moral of this
story: money does not guarantee happiness, but a well-drafted will and
a sound estate plan at least guarantees that you'll get the money without
that much hassle.
That's the
Way it Looks from Here.
| Robert
Bauman is Legal Counsel for The Sovereign Society and editor of The Sovereign
Society Offshore A-Letter. A former member of the U.S. House of Representatives
from Maryland, he is a graduate of the Georgetown University Law Center
(1964) and the School of Foreign Service (1959). |
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