PIPPEN LAW GROUP, PLLC

Doris Duke. Mistake: Bad Choice of Executor Doris Duke, the tobacco heiress who died in 1993, had an estimated estate of $1.3 billion. She inherited most of her money at the age of 12 when her father died. However, she responsibly managed this wealth over the course of her lifetime, increasing the inheritance value. Ms. Duke originally set up her Charitable Trust and Will with her longtime friend and physician as executor. However, months before her death, ill and secluded in her California home with only her butler, and she amended her documents and named her butler as the person to fulfill her wishes. Following her death, the former executor of her estate, her longtime friend and doctor, contested the validity of her decision to change executors, believing that Ms. Duke was not of right mind when she executed the new will, and was a victim of elder abuse by her butler. Contesting a will based on elder abuse is generally done for two reasons: (1) Lack of mental capacity of the testator (person signing) at the time of signing; (2) The person contesting believes that the testator was subject to undue influence at the time of signing. Undue influence is a serious legal contractual defense and is generally defined as a contractual situation in which "one party to the contract is a person with weaknesses which make him likely to be affected by such persuasion, and that the party exercising the persuasion is someone in a special relationship with the victim that makes the victim especially susceptible to such persuasion;"[1][1] Many states have their own specific definitions within their statutes. After three years of legal battles, utilizing 40 lawyers, and using $10 million dollars in legal expenses Doris's butler eventually agreed to take a payout in exchange for renouncing his seat on the Doris Duke Charitable Foundation board, and stepping down as executor. Ms. Duke's situation is a two-fold lesson. The planner must be diligent in their estate planning and be aware of the risk of financial elder abuse as they age. Family members or close friends are often named as Personal Representative or Successor Trustee of estates, but if you are unconfident in their abilities, banks, credit unions, and even estate planning attorneys are able to serve in these capacities. Don’t make the mistakes that Doris Duke made when she changed her estate plan. Consult a local attorney to set up a Trust and to make sure that any amendments (changes) you make are in your best interest.