• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sinclair Prosser Gasior

Annapolis Estate Planning Attorneys

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Call Now: (410) 573-4818

Attend a Free Workshop Trustee School

  • Home
  • About Our Firm
    • About Our Firm
    • Founding Attorneys
    • Meet Our Team
  • Services
    • Annapolis, MD Asset Protection and Business Planning
    • Estate and Gift Tax Figures
    • Annapolis, MD Elder Law & Medicaid Services
    • Annapolis, MD Trust Administration & Probate
    • Family-Owned Businesses & Farms
    • Annapolis, MD Incapacity Planning
    • Annapolis, MD LGBTQ Estate Planning
    • Annapolis, MD Pet Planning
    • SECURE Act
    • Annapolis, MD Special Needs Planning
    • Estate Planning for Young Families
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Definitions
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Asset Protection Planning
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Power of Attorney
      • Probate Avoidance
      • Trust Administration & Probate
      • Wills
    • Is Your Estate Plan Outdated?
    • Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Trust Administration
      • Estate Planning for Niches
    • Top 10 Estate Planning Techniques
    • Newsletters
  • COMMUNITIES WE SERVE
    • Anne Arundel County
      • Annapolis
      • Crownsville
      • Davidsonville
      • Highland Beach
      • Millersville
    • Baltimore County
    • Calvert County
      • Dunkirk
      • Huntingtown
      • Owings
    • Charles County
      • Charlotte Hall
      • Waldorf
    • District of Columbia
    • Howard County
    • Maryland
      • Clarksville
      • Columbia
      • Ellicott City
    • Prince George County
      • Bowie
      • Fort Washington
      • Glenn Dale
    • Queen Anne’s County
      • Grasonville
      • Queenstown
      • Stevensville
    • St. Mary’s County
      • Charlotte Hall
      • Leonardtown
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
  • Make A Payment
  • Client Portal
Home / Estate Planning / Clarity is Key to Planning

Clarity is Key to Planning

July 1, 2019 by Jon J. Gasior, Estate Planning Attorney

“Clarity is Key to Planning” by Attorney Jon J. Gasior (Audio)

When problems arise in an estate plan, often the source is a lack of clarity.

Tom Petty died in 2017 and left a fortune estimated by Newsweek to be around $38 million. Petty did some things right, but he could have done better.

What did Tom Petty do right? First, he planned. Most people just let nature take its course and fail to plan. There’s an old adage: when you fail to plan, you are planning to fail. That’s usually as true in estate planning as with most things. Each state has a statute which sets forth what happens to your assets if you don’t plan. It’s called intestacy and it may be very different from what you want.

Next, Tom Petty used a trust for his assets. This means his assets can avoid the cost and delay of the probate process which must occur at death for assets not in his individual name. Further, a trust can provide privacy. However, when the trust ends up in litigation, privacy may be lost, which brings us to what he could have done better.

Petty’s trust provides that his widow, Dana York Petty, is the trustee. It also provides his two daughters from a prior marriage, Adria Petty and Annakim Violette, should have “equal participation” in decision making concerning his assets. So, the three are in court trying to determine what he meant. His daughters contend that it should be by majority rule and they can outvote his surviving spouse. His surviving spouse contends that she, as trustee, has decision-making authority and merely needs to include them in the process. Here’s a link to more information.

If Petty had been clearer, he would have served his loved ones better. They may not have liked what he determined, but they probably wouldn’t be in court arguing over it. The acrimony of litigation is the last thing Petty would have wanted.

A dispute between a surviving spouse and children from a prior marriage is quite common. One way to avoid such a dispute is providing clarity in the estate plan. Another way to avoid disputes is to make sure their financial interests are aligned. Often a trust provides for all income to the spouse for life and then for the remaining assets to go to the children. However, such a trust puts their interests at odds. The surviving spouse would want the trust invested in high-yielding assets and the remainder beneficiaries would want the trust invested for growth. This financial conflict can be avoided by aligning their financial interests with a “unitrust” for the surviving spouse.

A unitrust provides a set percentage of the trust each year to the spouse (such as 4%) and at the spouse’s death, gives the remainder to the children. With a unitrust, the spouse and the children all want to maximize the value of the trust.

It’s important to draft an estate plan to minimize the possible conflicts. Clarity is key to minimizing conflicts.

The information in this article was provided by Stephen C. Hartnett, J.D., LL.M. Director of Education of the American Academy of Estate Planning Attorneys, Inc.

  • Author
  • Recent Posts
Jon J. Gasior, Estate Planning Attorney
Jon J. Gasior, Estate Planning Attorney
Attorney/Owner at Sinclair Prosser Gasior
His personal experience with family and the problems that resulted from their failure to create an estate plan resulted in his desire to learn more about this area of the law. From his work in the Elder Law Clinic, he further realized the need to plan not only for death, but also for incapacity during their lifetime.
Jon J. Gasior, Estate Planning Attorney
Latest posts by Jon J. Gasior, Estate Planning Attorney (see all)
  • Helping Your Family Through Estate Planning - September 21, 2022
  • Estate Planning Scams - August 16, 2022
  • What is the Maryland Trust Act? - July 11, 2022

Filed Under: Estate Planning, Legal Education Tagged With: Clarity, Tom Petty, trust

Other Articles You May Find Useful

Annapolis probate attorney
How Social Media Posts Might Impact a Will Contest
Bowie estate planning attorneys
Can I Prevent Someone from Contesting My Will?
Estate Planning Mistakes
living trust
Three Things a Living Trust Won’t Accomplish
What is the Most Important Estate Planning Document?
Tax Law Changes for 2022

About Jon J. Gasior, Estate Planning Attorney

His personal experience with family and the problems that resulted from their failure to create an estate plan resulted in his desire to learn more about this area of the law. From his work in the Elder Law Clinic, he further realized the need to plan not only for death, but also for incapacity during their lifetime.

Primary Sidebar

Download our free estate planning worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Testimonials

5 Stars
Client Review
September 3, 2020
    

We initiated estate planning following a presentation by Sinclair Prosser Attorney Jon Gasior. We were so impressed, we contracted with them to complete our estate planning. Subsequently, we assembled information on our assets and Sinclair Prosser Gasior did the rest. Correspondence was communicated to our financial institutions and the estate was established. We were very pleased with the courteous manner of the Sinclair Prosser Gasior staff. However, it was their professionalism that made us satisfied we chose this firm to handle our estate. We have nothing but praise for Sinclair Prosser Gasior .

default image
– Walter K.

Blog Subscription

Sign up for our blog to receive all of our latest estate planning news and updates!
  • This field is for validation purposes and should be left unchanged.

ANNAPOLIS

900 Bestgate Road
Suite 103, Annapolis, Maryland 21401
Phone: (410) 573-4818
Fax: (410) 573-2802

BOWIE

4201 Mitchellville Road
Suite 403, Bowie, MD 20716
Phone: (301) 970-8080
Fax: (410) 573-2802

MILLERSVILLE

1520 Jabez Run Rd
Suite 300, Millersville, Maryland 21108
Phone: (410) 573-4818
Fax: (410) 573-2802

WALDORF

Hamilton Centre II
3261 Old Washington Road, Suite 2020 Waldorf, MD 20602
Phone: 800-366-4615

Map

map for office

Footer

footer logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Maryland Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

© 2023 American Academy of Estate Planning Attorneys| Privacy Policy | Contact Us | Disclaimer | Site Map