This is continued from an piece I did in my Newsletter:
An article in The Arizona Republic by Laurie Roberts for Dec. 2 adds more details about the court, guardian and legal expenses of the poor woman who saw her nest egg vanish into thin air. The attorney for the trustee who oversaw the guardianship collected over $345,000 in fees, the guardian $178,000, and $235,000 was spent on "other supplies" over a 20-month period. In addition, the attorneys for the guardian received another $57,000. As you can see, it didn’t take long for a $1.3 million to disappear. If she had properly planned in advance, many of these expenses could have been avoided. Certainly the high cost of guardians and legal fees could have been modified and reduced to allow more of her money for direct care and supervision.
As a follow up, there was a third article on Dec. 19 entitled, "No Justice for an Elderly Woman as Fortune Vanishes," in which Ms. Roberts wrote, "Marie Long was officially declared indigent this week by Maricopa County Superior Court Commissioner Lindsay Ellis." The article states that Ellis ought to know. The entire time she has been presiding over this case of this 88-year old woman who was worth $1.3 just four years ago. Ellis is a probate judge who stood by and did nothing as hundreds of thousands of dollars were drained away in a great part by guardian fees and lawyers. While there were several people who begged the court to do something, it took Ellis a year to consider one of the requests. When she finally got around to holding the hearing, the money was gone.
This saga is one of the main reasons we strongly urge clients to adequately prepare for the possibility that they may become incompetent no matter how wealthy they may be. While this elderly woman was not super-rich, she certainly had a sufficient amount of assets that should have provided for her adequately for the remainder of her life.
This case may be unusual, but it is not an impossible one. The court system is not designed for speed and efficiency. We have tell clients that there is no such thing as quick justice in the legal system. The case of Marie Long certainly illustrates this principle. Not only has the court deigned that she is indigent but that her newly appointed guardian would be removed if she were to pursue any legal action against any prior parties. Thus, in effect, the court precludes any action on anyone’s part to try to recover any monies for Marie.
What does this mean to you and your clients? Simply this: Whether they have $500,000 or $5 million, they need to have a plan that, should they become incapacitated through an accident, illness, or just old age, they have a mechanism in place that will allow their property to be properly administered for their benefit without having court interference. By spending a few dollars now they can establish a detailed program that spells out what they want done, who should act, and what they should do so that court interference with the management and control of their property is avoided or kept to a minimum. In doing so they need to be careful to select persons or entities who will follow their wishes at a reasonable cost to them.
Sadly, Marie Long’s money should have kept her comfortable for 15 years at a Mariott-level assisted living facility.
My Best,
Jim
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It sounds good - set up a trust, a financial POA, a Health Care POA, a will, a Living Will and you can sleep well knowing your assets are safe. But it doesn't seem to offer much protection from the elderly predators who target those lonely widows and widowers who might have declining mental capacity. The entire estate can be consumed by the legal expenses needed to expose and combat the results of undue influence.
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