New York Real Estate Lawyers Blog
Fans of Dolly Parton were heartbroken to hear the news announcing the American entertainment icon’s death. Her life was a true rags to riches story, having grown up “dirt poor” as one of twelve children to fame and fortune that reached Hollywood and beyond. Dolly’s down-to-earth relatable personality won over persons of all generations and walks of life. Her accomplishments ranged from songwriting, musical performances, to acting and philanthropy.
Dolly was married for fifty-nine years until her husband passed away last year. They were not blessed with children, but Dolly famously said that parenthood was not in God’s plan so that everybody’s kids could be hers. Her nephew announced her death to the world, leading to speculation that she may have left her estate to her nephew and potentially other nephews and nieces as her closest relatives.
The high heeled wig wearing performer was no “dumb blonde.” She found connections with others and did not treat herself as “an island in the stream.” Dolly always found room in her generous heart for charitable endeavors that spanned medicine, education and disaster relief. This post will address how a person may want to consider charities in their estate plans.
Dolly worked “9 to 5” and amassed substantial wealth. However, she never forgot her humble upbringing and her father’s illiteracy. She established the Imagination Library, which donated countless books to children in order to develop reading skills. Dollywood was an amusement park of Dolly’s creation built where she was raised that created numerous jobs for the Tennessee region. Dollywood also raised funds for the Dollywood Foundation.
We have noted that famous people may find it advantageous to have a trust drafted by an experienced attorney in order to enhance privacy as to the disposition of assets without Surrogate’s Court proceedings that could become public knowledge. In addition, persons with charitable interests may wish to establish a specialized charitable trust. Those settlers wishing to benefit charities could consider Charitable Remainder Trusts and Charitable Lead Trusts. A Charitable Remainder Trust pays income to the donor and/or designated beneficiaries during the donor’s life, leaving the balance to the charity at the death of the donor. This provides for an immediate income tax deduction and for later estate tax savings. A Charitable Lead Trust initially pays the income generated to the charity for a period of time, after which the trust assets are returned to the donor, her spouse or a named beneficiary. Income tax is not due so long as the assets do not revert to the donor and estate taxes can thereby be reduced.
It should be noted that in New York, the state’s Attorney General must be noticed and participate in an estate proceeding if a charity is named in a will, in order to insure that the interests of the charity are furthered. In any case, the charitable donor would have the opportunity to establish conditions to a charitable gift. It may also be beneficial to make gifts during one’s lifetime in order to control how the funds are used and experience the gratitude of others.
The rhinestone wearing transcendent star also had unique personal property such as her “coat of many colors” that should be considered for disposition in her estate plan. Her substantial music catalog, over which she always retained sole ownership, would require a knowledgeable person to manage its use and potential sale for the benefit of the estate beneficiaries.
Our attorneys remain available to consult with respect to estate plans, perhaps inspired by Dolly, that are generous to charitable causes and show the world that “I will always love you.”