I recently inherited my grandmother's $10+ million estate, but there are some complications. Advice, please?

Hello all. First I want to again say thank you for advice/questions to ask/support. Much appreciated. I've just returned from seeing a lawyer. He said he's very confident that I have full rights to the case, and will contact my grandmother's lawyer to make sure it is airtight (should I choose to have him take on the case). I'm very happy with how the meeting went and he encouraged me to seek a second opinion for my own peace of mind. I will do that but am inclined to keep this attorney even though his rate seems relatively high (but I must admit I have no idea what would constitute a high rate). He said, for example, if with him I keep the entire $10.5 million estate, he'd quote 1% of the estate as his fee, or $105k, even though I would not be netting the entire $10.5 million due to taxes (the attorney also said he will bring in an accountant to do the necessary tax work, which will incur other fees, but those fees are far less than what the attorney will charge). Is that a high rate or is that about what would be expected for a case like this?

Anyway, the lawyer said that should I take him on, we'll go over all the possible options in depth. Depending on how much I value my time, he said, a settlement still might be in my best interest depending how hard my uncle tries to draw the thing out. But it's too early in the game to make a determination as to what is actually in my best interest. We'd also have to wait until my uncle makes a formal move in court, which he hasn't done yet. So basically, it is still early in the game. But this attorney's early feel is that it should not be hard to win should this thing go to court. Or we could possibly bring it to a less stressful and amicable end with a well worked out settlement, keeping in mind that I will have a lot of leverage in the settlement talks.

So that is the update. I hope to see another attorney later this week. Any further input, as always, is appreciated.

that sounds like a very very high attorney fee.

And really pin him down on the ancillaries - my mother trusted a lawyer once when he refused to give her a hard final price and he really socked it to her. I was furious. Lqwyers will try to dodge and weave, but really try. if it is a solid case then surely someone will take it on for less.

the lawyers attitude is that this is free money to you so what do you care if you lose 1% of it. he figures you won't fight for a windfall.

agip wrote:

that sounds like a very very high attorney fee.

And really pin him down on the ancillaries - my mother trusted a lawyer once when he refused to give her a hard final price and he really socked it to her. I was furious. Lqwyers will try to dodge and weave, but really try. if it is a solid case then surely someone will take it on for less.

the lawyers attitude is that this is free money to you so what do you care if you lose 1% of it. he figures you won't fight for a windfall.

Yes I thought similar things and thought his motivation might be similar to what you described. But I did like the fact that he openly encouraged me to seek a second opinion and I thought that was a forthright act.

1) there will be an estate tax on this. The first 5,250,000 is exempt. After that, you're tax rate will be 40%. So you are looking at about 2+ million in taxes.

If your grandmother had a trust, and was of sound mind and body when she changed it, there is little chance of your relatives getting a penny (you don't give to them). In fact, if your grandmother had a trust, and assets are titled in the trust, then you can access them right now.

If there is just a will, then you have to go through probate in court not matter what (and this will cost money). The relatives can contest the will. They will likely have to prove you manipulated her. The court will typically side with the will, unless they can prove malice (in which case you could end up with nothing).

Be aware. If the assets are in a trust, and you become the new trustee. Then I believe anything you pass on to others becomes a gift from you, and is subject to gift limits, etc.

My advice...you need a lawyer.

Pointing Out the Obvious wrote:

Flagpole (ahem - "Horace"), get a life.

So, insinuating that someone who agrees with me MUST BE ME, huh?

Nope! He is another poster.

WEJO, DO AN IP CHECK, AND IF I LIE, BAN ME FOR LIFE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I am not Flagpole. Why don't you debate the point rather than claiming we are the same person.

Pointing Out the Obvious wrote:

Horace wrote:

Who made you an expert.

Flagpole's advice is what the OP needs. Spot on, as usual.

Flagpole (ahem - "Horace"), get a life.

Flagpole wrote:

OP,

1) First of all, assuming you haven't already told the family members that you're keeping it all, that uncle of yours is out of line. I'd split it up evenly, but tell him he's an a$$hole for going right for the legal action route.

2) DO split it evenly, but make sure you are compensated for any extra legal fees you incur, and maybe even a little bit for your time...that's only fair.

Jesus, why doesn't he just go take a dump on his grandmothers grave too? Do you not understand that is what she wanted? Are you the kind of person who doesn't honor someones dying wishes?

Closed my parents estate 3.5 years ago valued at $6.1 million with 3 brothers and kids of a deceased sister. Hopefully your grandmother used a competent estate lawyerto set up her will. They represents her estate to distribute its assets, and execute her wishes. Again, these are HER assets and wishes, as SHE saw fit. Not your mother's, uncle's, or anyone else's! As you insinuated, you will be pressured to "do the right thing" and other lawyers may be hired to apply pressure to change the will.

It's not about them or you. Don't waiver on what were your g-mom's wishes were.

Buy the way, who is the executor?

Flagpole wrote:

So, insinuating that someone who agrees with me MUST BE ME, huh?

Nope! He is another poster.

WEJO, DO AN IP CHECK, AND IF I LIE, BAN ME FOR LIFE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Following your line of thought (rationale, advice) for the OP to it's logical conclusion in this case; wejo should just skip the IP check and go right for the lifetime ban.

Flagpole wrote:

Pointing Out the Obvious wrote:

Flagpole (ahem - "Horace"), get a life.

So, insinuating that someone who agrees with me MUST BE ME, huh?

Nope! He is another poster.

WEJO, DO AN IP CHECK, AND IF I LIE, BAN ME FOR LIFE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Ah, the beloved, "WEJO, DO AN IP CHECK, AND IF I LIE, BAN ME FOR LIFE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

I don't know, have you done something with this? Added a few extra '!'s?

Horace wrote:

I am not Flagpole. Why don't you debate the point rather than claiming we are the same person.

Pointing Out the Obvious wrote:

Flagpole (ahem - "Horace"), get a life.

OK, Flaggy. Whatever you say.

Debating the point? That's funny. Shall we have a discussion about you - oh, I meant Flagpole - again?

You are a riot.

But you not addressing my point that you simply don't know his family. So stop giving advice on what he should do.

Wait, did you just say "stop giving advice" to the OP when the OP titled this thread "...Advice, Please?"

Now that's even funnier than flaggy himself.

OP, if you consider settling make a one-time offer (at least 50% to you) and require that ALL applicable family members agree to the settlement TOGETHER.

That way you could pit the evil uncle against the rest of the family, and he would be the bad guy MORE THAN YOU.

Also, all taxes & legal fees split proportionately.

some old running attorney wrote:

You can live a very comfortable life on $5 million. Talk to an attorney. Make an offer to your relatives for them to divide up the estate less your $5 million in exchange for agreeing not to contest the will, and give them a fairly short time frame to make a decision. Then it's up to them to get their share of $5 million+ or risk getting nothing.

I agree with the above advice. Your relatives want the estate divided evenly, your grandmother wanted you to have it all. Tell your relatives you'll meet your grandmother's wish half way by taking half for yourself, and you'll meet them half way by dividing the other half evenly with them for not contesting the will.

I think all of your relatives (except your uncle) will agree to this, which will put pressure on your uncle to give in, because he will look like the greedy one.

Also, a 1.00% lawyer fee is too high. Ask for the work to be initially done at an hourly rate. You can always later agree on a "fraction" of a percentage at a later time if you can't settle this quickly.

Good Luck!

Get a really good inheritance lawyer.

He should:

Quote all of his fees and costs up front. Have him be specific. No wishy washy language that lets him fly to Hong Kong on your dime to "consult" with a "specialist", or drag out "consulting" services for 10 years, or get a bigger percentage if something "unforeseen" occurs.

Check with your grandmother's attorney of the final will. That would help establish your gms competency.

Get a price quote from at least one more lawyer.

1% sounds too high. You should tell him it sounds high and that you will get quotes from other attorneys before signing with him. This sounds like an easy case and he should be willing to settle for less rather than lose easy money.

If you are going to give your relatives a taste, see if it can be done as part of the inheritance to reduce the tax burden. Don't take the full inheritance tax bite yourself then have to pay an additional gift tax afterwards.

Think about retaining a second lawyer to evaluate the performance of the first lawyer.

Not only that, but this guy gave his own advice earlier in the thread. LMAO

Pointing Out the Obvious wrote:

ryan foreman wrote:

But you not addressing my point that you simply don't know his family. So stop giving advice on what he should do.

Wait, did you just say "stop giving advice" to the OP when the OP titled this thread "...Advice, Please?"

Now that's even funnier than flaggy himself.

Hi there,

You are in a very unique position as you now have enough money to do whatever you may want to do if you're smart with it, or do nothing at all. However! You will find yourself happiest if you continue to work.....even if it's volunteering somewhere. From experience, I have seen many different outcomes to families and individuals in this situation.

I would welcome the opportunity to speak with you, as I work what is arguably the best wealth management firm in the world for individuals with $5+ million. There are many things to think about besides basic investments. You now are in a wealth category that requires proper trust/estate planning as well? I have worked for 3 of the world's best companies and specialize in high net worth individuals.

I am also a former collegiate all-American in track and cross-country.

Feel free to call me at 618-334-1040 if you would like to talk , I would be more than happy to speak with you and guide you. Wealth is great but it also brings many complexities with it.

Michael

1% is crazy.

He should have an hourly rate. All attorneys have an hourly rate and should offer that to you. RUN from anyone wanting a percentage.

Find a mid-size or larger firm with 20+ attorneys and a large estate planning section.

This is not contingent work, it should be done on an hourly basis. If your uncle doesn't contest, he'll do absolutely nothing. Hire someone hourly and give them a limit of 10 hours. If it gets messy, you'll spend more, but it's not that messy right now, and if your Gma had a competent attorney, it should be a very straightforward matter.

Also, make sure any financial advisor you are using is from a large national firm. No guy running a scheme out of his office with his two buddy.