In 1998, Ray Fulk of Lincoln, Illinois (Logan County) had a Will prepared. Fulk was never married and never had any children. His primary asset was a 160-acre farm property, which he had inherited from his late father, who passed away in 1997. Fulk enlisted the same attorney who had administered his father’s estate, Donald Behle, to prepare his Will. Fulk indicated to Behle that he would like to leave his estate to two friends, Peter Barton and Kevin Brophy, both actors. The attorney prepared the Will as asked.
In July of 2012, Fulk passed away. Behle contacted the beneficiaries to inform them of their inheritances. Little did Behle know that Fulk had never met Barton or Brophy, but was instead just a fan of their work. Peter Barton appeared in several soap operas and television dramas and is best known for his role as Dr. Scott Grainger in the soap opera “The Young and the Restless” from 1987 to 1993. Kevin Brophy appeared in the 1977 television show “Lucan” and had made several intermittent television appearances since then. However, Barton and Brophy were hardly household names. Fulk, clearly a fan, reportedly had a poster from “Lucan” on the wall of his house, according to the State Journal-Register of Springfield, Illinois.
In addition to farm and timber ground, the property, which has been appraised at $1,054,000, also has a home that had plumbing, but for which Fulk did not have running water. Fulk also had about $230,000 in cash and CDs. Thus, Barton and Brophy stand to inherit about $640,000 each, minus legal fees and expenses, from a man that neither of them ever met. The only other bequest that Fulk left in his Will was the sum of $5,000 to the Anti-Cruelty Society, a charitable organization focusing on animal adoption and their humane treatment, based in Chicago. According to the organization, they have no record of prior donations or contributions from Fulk.
Leaving Assets to Unknown Individuals
While there is no requirement that assets be left to relatives or individuals with whom the creator of the Will or Revocable Living Trust has had a personal relationship, there are several issues that may arise when assets are left to unknown individuals. Fulk likely had no idea if his beneficiaries were healthy, alive, getting divorced or in financial trouble. Any such issues would have significantly impacted the actor’s inheritance.
First, if a beneficiary has special needs or is receiving government assistance, any gifts or inheritances for such individuals should be held in a Special Needs Trust, which allows the trustee to make distributions for the beneficiary’s needs that are not fulfilled by government assistance. If such assets are left to the beneficiary outright, they will likely have to be spent down to eligibility levels before government assistance will resume. This essentially wastes any gift or inheritance left to a beneficiary who has special needs.
Second, the drafting attorney must inquire whether is the individual’s desire that the inheritance pass to the beneficiary’s descendants if he or she is not living at the time of inheritance. In other words, if Barton had predeceased Fulk, would he want Barton’s share to pass to Barton’s descendants or to Brophy? In Illinois, there is an anti-lapse statute which provides that if a gift is left to a descendant of the testator (the creator of a Will, in this case Fulk) and such descendant predeceases the testator, then such share shall pass to the descendants of the deceased beneficiary, per stirpes.1, 2 This possibility should always be considered and discussed with the testator to ensure that the Will accurately reflects the testator’s wishes.
Third, if one of the beneficiaries is involved in divorce or creditor issues at the time of inheritance, his ex-spouse or creditors could access the inheritance if the document does not protect against it. Such unintended exposure and loss of the inheritance can be prevented by using a Revocable Living Trust, rather than a Will. A trust allows the trustee to protect the trust assets from circumstances that may arise after the trust is created. Anticipating situations and proper drafting can be the difference between providing for your loved ones or a total loss of the estate.
Leaving Assets to Charities without Prior Contributions
Although this is a common occurrence, charitable organizations prefer to be notified of expected gifts as early as possible. This allows them to plan for the revenue and also establish a relationship with the donor during his or her lifetime. However, when the bequest is left in a Will or Revocable Living Trust, it is preferable to not notify the organization since the donor can amend or revoke such gifts during his or her lifetime.
Additionally, when leaving a bequest to a charitable organization, the document should provide what will happen to the sum or share of the estate if the organization changes its name, merges with another organization or does not exist at the time of the bequest. It is crucial that the document not leave such loose ends, potentially opening the door to disputes and litigation.
Probate and Privacy
Fulk’s estate is currently in the Logan County Probate Court. Probate is the process by which the court validates a decedent’s Will and oversees the administration of the estate in accordance with that Will (testate) or in accordance with state law if the decedent did not leave a Will (intestate).
Probate is a long, expensive process, required to last a minimum of six months under Illinois law, but usually lasting closer to twelve to eighteen months. Probate can be avoided by placing your assets in a Revocable Living Trust. A trust’s assets do not have to pass through probate court in order to reach the beneficiaries. Additionally, unlike a Will, which must be filed with the county court within thirty days of death, a trust is a private contract between the trustee and the beneficiaries. Thus, by establishing a trust and transferring his assets to it during his life, Fulk could have kept his wishes and the beneficiaries of his estate—Barton, Brophy and the Anti-Cruelty Society—private and could have significantly reduced the costs and time required to administer the estate.
An individual can leave his or her estate to whomever they want, regardless of whether or not they have a prior personal relationship beneficiary or not. However, as is the case with any estate, there are many issues that can arise when loose ends remain in a Will or Revocable Living Trust. In this case, since Fulk did not have a personal relationship with the beneficiaries, any of the circumstances discussed above may have existed, exposing Fulk’s estate to unnecessary expenses and avoidable delays in administration.
1. “Per stirpes” is a Latin term commonly used in trust documents to provide for the distribution of a deceased individual’s share to his or her descendants in equal shares. The literal translation of this Latin term is “by the roots.”
2. Note that the Illinois “anti-lapse” statute only applies when the gift or inheritance is left to a descendant of the testator (755 ILCS 5/4-11). Thus, it would not have applied in Fulk’s situation since Barton and Brophy were not descendants of Fulk.