Estate Planning, Probate & Elder Law Attorneys

» $700 billion bailout revived

» Theodore T. Kurlowicz, JD, CAP , ChFC , CLU Inducted Into The Estate...

September 29, 2008 - The National Association of Estate Planners & Councils is pleased to induct Theordore T. Kurlowicz.

» More on Terminating Independent Administration

I spoke about frustrations with the termination of independent administration here. A few follow-up points:

1. In the statute, a distinction is made between Wills that direct independent administration, and those that don't. If the Will directs independent administration, then supervised administration will only be allowed "if the court finds there is good cause." Otherwise, the court will switch to supervised with no argument. But note that the Will must use the magic language directing indepedent administration; it's not enough for the Will to say that the executor has X powers, which may be exercised without court order.

2. Cook County has provided the following language for orders terminating independent administration:

On the petition of [petitioner] for termination of independent administration:

IT IS ORDERED THAT:

1. Independent administration of the decedent's estate is terminated.

2. [Executor/administrator's name] shall continue to act as [executor/administrator] in supervised administration, and letters of office issued subsequent to this date shall issue to the representative as supervised [executor/administrator].

3. The clerk of the court shall mail a copy of this order to the representative and the representative's attorney.

4. The representative shall mail notice of the termination of independent administration to all interested persons whose names and post office addresses are known to the representative, and file proof of mailing with the clerk of court. (Here is Cook County's form notice.)

5. The representative shall file an inventory within 60 days.

» Heir Property and The Gridlock Economy

I wrote recently about the issue of "heir property" here. Next week I start my second business school class, Advanced Economic Analysis with Professor Kevin Murphy. This is supposed to be a VERY intense class, so during my month break between quarters, I've been reading all of the economics information I can get my hands on (which includes trying to educate myself about our current financial crisis). The book I'm currently reading is entitled The Gridlock Economy: How Too Much Ownership Wrecks Markets, Stops Innovation, and Costs Lives, by Michael Heller. Professor Heller is a law professor at Columbia (he actually taught at the University of Michigan Law School while I was there, although I never had a class with him). His book is about what he refers to as the "tragedy of the anti-commons," meaning the problems that arise (underuse, mostly) when property is owned by too many different people or entities.

I'm only about half-way through the book, most of which has focused on drugs, and the inability of researchers to move forward with new discoveries because such discoveries may involve many different patents. If just one of the patent holders holds out, the research can be derailed -- hence the gridlock of the title. On pages 121-5, Professor Heller actually brings up the issue of heir property, and how the gridlock as a result of multiple owners has caused farm ownership by black families to drop from about 1 million (in 1920) to 19,000 today.

» Pimco?s Gross offers Treasury a helping hand