BRIDGES A newsletter for Carolinians on transitioning family wealth, wisdom & values September/October 2014 In this Issue: Pages 1 & 2 Another Celebrity Creates a Bad Will Thank You Page 3 Fun Facts About Fall, Upcoming Workshops Page 4: Get to Know the CFEP Team Carolina Family Estate Planning 51 Kilmayne Dr., Suite 203 Cary, NC 27511 919-443-3035 Carolinafep.com NCwillsandtrusts.com Facebook.com/carolinafep Practice Areas: Wills & Living Trusts Asset Protection Trusts Long Term Care Planning Medicaid Planning & Qualification Veteran’s Aid & Attendance Benefits Children’s Safeguard Planning Probate & Estate Administration Trust Administration This publication is intended to educate the general public about estate planning, elder law, asset protection and related issues. It is not intended to be legal or tax advice. The information in this newsletter may be freely copied and distributed as long as the newsletter is copied in its entirety. reports state, Hoffman didn't believe in the institu- tion. And therein lies one of the big problems with his estate. Because they were not wed, O'Donnell does not qualify for the marriage exemption on inherited assets. Instead of the entire $35 million passing to her tax-free, Forbes reports, she only qualifies for the federal estate tax exemption for the first $5.34 million - leaving the other approximately $30 mil- lion fully taxable. Clearly, being married is in your clients' best interests. http://tinyurl.com/mklfs6s By federal law, the rest of Hoffman's estate is tax- able at up to a 40 percent rate. On top of that, New York has its own estate tax, up to 16 percent for non- spouses with only a $1 million exemption. Accord- ing to Forbes, that leaves Hoffman's estate owing up to $15 million in taxes. As DailyFinance says, not being married cost O'Donnell and her children $12 million that will go to the IRS. http://tinyurl.com/lpo9qej From a tax standpoint, Hoffman's case isn't that far removed from the estate mess actor James Gandolfini left when he died. In Gandolfini's case, his poor planning left his estate owning up to $30 Another Celebrity Creates a Bad Will Philip Seymour Hoffman was a talented, Oscar- winning actor and a troubled man. When he died from an apparent heroin overdose in February, he left behind his long-time partner, Mimi O'Donnell, and three pre-teen children they had together. He also left behind an example of estate planning gone wrong, a cautionary tale of what you should not do when setting up your final affairs. For despite his wealth - an estimated $35 million - Hoffman provided no direct financial security for son Cooper and daughters Tallulah and Willa. Not wanting to have his children grow up, as he told his lawyer, "trust-fund kids," Hoffman left them noth- ing in his will, instead leaving his entire estate to O'Donnell. Unwed Despite being long-time partners, Hoffman and O'Donnell were never married, because, as numeous Continued on Page 2 Some of you are long time readers of our newsletter, but we’ve also added many new readers over the years and thought it might be fun to start a “Get to Know the CFEP Team” series. Each month we’ll feature one of our team members. Featuring: Lorraine Davis, Client Services Administrator About Lorraine! Married for 37 years to her husband and high school sweetheart Keith. They have one son, John and a daughter-in-law, Morgan. They have two dogs; a Corgi named Cosmo (after her favorite drink) and a Golden Retriever named Lucky. What do you enjoy to do in your free time? I really love cooking and baking. I also enjoy decorating both my home and other people’s homes and you can often find me shopping. Something unique that I do in my free time is make hand-made cards. I love crafting for myself and for other people and I create an assortment of greeting cards that range from birthday cards, to thank you cards, to invitations. Do you have a favorite recipe or meal that you like to make? I love grilling chicken, steak and bacon, However, my favorite meal is Jambalaya, which my two friends from New Or- leans taught me how to make from scratch. Are there any books or films that have recently caught your attention? I recently watched Winter’s Tale and really enjoyed that movie. It’s an interesting and complex story about a thief who unexpectedly falls in love with an ill girl. Where is your favorite place to visit for vacation? Ocean Isle is my favorite place to vacation and I visit there often. I love that it is close-by and that we can take the dogs there and just hang out on the beach. We often go with friends or family and always rent a house by the water. CAROLINA FAMILY ESTATE PLANNING 51 Kilmayne Dr., Suite 203 Cary, NC 27511 Phone: 919-443-3035 Fax: 919-324-6987 www.CarolinaFEP.com Estate Planning Gone Wrong! Look inside for more details.
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BRIDGES A newsletter for Carolinians on transitioning family wealth, wisdom & values
September/October 2014
In this Issue:
Pages 1 & 2
Another Celebrity Creates a Bad Will Thank You
Page 3
Fun Facts About Fall, Upcoming Workshops
Page 4:
Get to Know the CFEP Team
Carolina Family Estate Planning 51 Kilmayne Dr., Suite 203 Cary, NC 27511 919-443-3035 Carolinafep.com NCwillsandtrusts.com Facebook.com/carolinafep
Practice Areas:
Wills & Living Trusts
Asset Protection Trusts
Long Term Care Planning
Medicaid Planning & Qualification
Veteran’s Aid & Attendance Benefits
Children’s Safeguard Planning
Probate & Estate Administration
Trust Administration This publication is intended to educate the general public about estate planning, elder law, asset protection and related issues. It is not intended to be legal or tax advice. The information in this newsletter may be freely copied and distributed as long as the newsletter is copied in its entirety.
reports state, Hoffman didn't believe in the institu-
tion. And therein lies one of the big problems with
his estate.
Because they were not wed, O'Donnell does not
qualify for the marriage exemption on inherited
assets. Instead of the entire $35 million passing to
her tax-free, Forbes reports, she only qualifies for
the federal estate tax exemption for the first $5.34
million - leaving the other approximately $30 mil-
lion fully taxable. Clearly, being married is in your
clients' best interests. http://tinyurl.com/mklfs6s
By federal law, the rest of Hoffman's estate is tax-
able at up to a 40 percent rate. On top of that, New
York has its own estate tax, up to 16 percent for non-
spouses with only a $1 million exemption. Accord-
ing to Forbes, that leaves Hoffman's estate owing up
to $15 million in taxes. As DailyFinance says, not
being married cost O'Donnell and her children $12
million that will go to the IRS.
http://tinyurl.com/lpo9qej
From a tax standpoint, Hoffman's case isn't that far
removed from the estate mess actor James
Gandolfini left when he died. In Gandolfini's case,
his poor planning left his estate owning up to $30
Another Celebrity Creates a Bad Will Philip Seymour Hoffman was a talented, Oscar-
winning actor and a troubled man. When he died
from an apparent heroin overdose in February, he
left behind his long-time partner, Mimi O'Donnell,
and three pre-teen children they had together.
He also left behind an example of estate planning
gone wrong, a cautionary tale of what you
should not do when setting up your final affairs.
For despite his wealth - an estimated $35 million -
Hoffman provided no direct financial security for
son Cooper and daughters Tallulah and Willa. Not
wanting to have his children grow up, as he told his
lawyer, "trust-fund kids," Hoffman left them noth-
ing in his will, instead leaving his entire estate to
O'Donnell.
Unwed Despite being long-time partners, Hoffman and
O'Donnell were never married, because, as numeous
Continued on Page 2
Some of you are long time readers of our newsletter, but we’ve also added many new readers over the years and thought
it might be fun to start a “Get to Know the CFEP Team” series. Each month we’ll feature one of our team members.
About Lorraine! Married for 37 years to her husband and high school sweetheart Keith.
They have one son, John and a daughter-in-law, Morgan.
They have two dogs; a Corgi named Cosmo (after her favorite drink) and a Golden Retriever
named Lucky.
What do you enjoy to do in your free time? I really love cooking and baking. I also enjoy decorating both my home and other people’s
homes and you can often find me shopping. Something unique that I do in my free time is make
hand-made cards. I love crafting for myself and for other people and I create an assortment of greeting cards that range
from birthday cards, to thank you cards, to invitations.
Do you have a favorite recipe or meal that you like to make? I love grilling chicken, steak and bacon, However, my favorite meal is Jambalaya, which my two friends from New Or-
leans taught me how to make from scratch.
Are there any books or films that have recently caught your attention? I recently watched Winter’s Tale and really enjoyed that movie. It’s an interesting and complex story about a thief who
unexpectedly falls in love with an ill girl.
Where is your favorite place to visit for vacation? Ocean Isle is my favorite place to vacation and I visit there often. I love that it is close-by and that we can take the dogs
there and just hang out on the beach. We often go with friends or family and always rent a house by the water.
CAROLINA FAMILY ESTATE PLANNING
51 Kilmayne Dr., Suite 203
Cary, NC 27511
Phone: 919-443-3035
Fax: 919-324-6987
www.CarolinaFEP.com
Estate Planning Gone Wrong! Look inside for more details.