Personal Wealth Law News

A recent news report contains some detail on the will of Leona Helmsley, who died recently. While two of her four grandchildren got nothing under the will, and two others get something only if they visit their father’s grave once a year, Mrs. Helmsley’s dog has done quite well. A $12,000,000 trust is to be established for the dog, ensuring its care for the rest of its life. But such a trust would be subject to federal estate tax. Where will little Fido get the money to pay the tax? It might come from the residue of the estate, but what if Fido has to pay the taxes? Remember that Leona once said that only little people pay taxes. Was she thinking of Fido? In any case, if a goal of estate planning is to preserve and foster healthy family relationships, does it appear that this will accomplishes that goal?

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Bob Louis spoke at a series of programs presented by the Pennsylvania Bar Institute on the topic of Retirement Planning for Lawyers. As more lawyers in the Baby Boom Generation approach retirement age, they are facing issues about their desire and ability to retire. Retirement planning includes lifestyle choices, financial and investment planning, retirement benefit planning, and health and long term care coverage. These considerations are very interrelated, and the result for one lawyer will not be appropriate for another. The important lesson to be learned from these programs is to think and plan ahead, and to have alternatives if the first choice doesn’t work.

Bob Louis is the Co-Chair of Saul Ewing’s Personal Wealth, Estates and Trusts practice, and a frequent writer and speaker on retirement and estate planning issues and their interaction, and on business succession issues.

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