In 2003, Kobe Bryant created a trust for the benefit of his wife, Vanessa, and their children. Last amended in 2017, the trust does not provide for their nine-month-old daughter, Capri. If Kobe were still alive, the trust could have been amended with relative ease by his signing an amendment drafted by his estate planning lawyer. However, since his tragic passing, the trust became irrevocable (i.e., Kobe is no longer alive to revoke or amend the trust) and any modifications to that instrument will require court approval. As such, on March 17, 2020, Vanessa filed a Petition to Modify Trust in Los Angeles Superior Court. So what is required to…
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Testamentary Capacity and Undue Influence
In 2015 and 2016, media magnate Sumner Redstone amended his trust, which was challenged by former companion Manuela Herzer. A California court recently ruled that Mr. Redstone possessed the required mental capacity to amend his estate plan. In North Carolina, whether an individual is a billionaire business mogul or anyone else, the requirements for testamentary capacity, or the required mental capacity to create a will or a trust, is the same. Testamentary Capacity To have testamentary capacity a person must be “of sound mind, and 18 years of age or over[.]” In practice, this means that the person creating the will, otherwise known as the testator, must be able to…
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Removal of Corporate Trustees in North Carolina
The landscape of the American economy changed dramatically in the last decade, particularly due to the 2008 financial crisis. America’s largest commercial banks were forced to sell assets, reorganize, shake-up top management positions, and/or close altogether. As a result, trusts managed by corporate trustees experienced high turnover among trust officials and changes in corporate ownership. While there are many advantages to hiring a corporate trustee, unsatisfied beneficiaries find it difficult to remove them, absent a flagrant breach of duty or express language in the trust document. While many corporate trustee relationships are positive, some beneficiaries become frustrated by a lack of control when confronted with mediocre…
