Before Walt Disney died in 1966, he probably couldn’t imagine that his grandchildren would be fighting in court over their inheritance nearly 55 years later, but that’s exactly what’s happening.
Disney’s fortune passed to his daughters when he died. Upon his daughter Sharon’s death in 1993, her share was in Trust for her fraternal twin grandchildren, who should have been able to access funds upon attaining age 35, with subsequent payouts scheduled for their 40th and 45th birthdays. However, there was a stipulation: The three trustees were charged with ascertaining whether each grandchild beneficiary had the mental capacity to manage their inheritance. The twins are now 50 years old.
Disney’s granddaughter, Michelle Lund, has received her share of the cartoon mogul’s empire. However, the trustees made a determination that Michelle’s twin, Bradford Lund, lacked capacity, setting off more than a decade of legal battles as Bradford has tried to demonstrate his mental capacity.
The latest filings by Bradford and his attorneys sharply criticized the former judge in the matter, who reportedly alleged in open court that Bradford had Down Syndrome – an allegation Bradford had proven false already through DNA testing. The nature of the judge’s remarks, Bradford claims, were biased, showing the judge was siding with the trustees in an attempt to keep Bradford from his $200 million inheritance – and to continue paying the individual trustees fees of $1 million per year.
In addition to fighting for his inheritance, Bradford Lund has also filed letters with the California Commission on Judicial Performance calling for the judge’s removal due to what he feels is an ethics violation. The judge has recused himself from the case.
It is unknown at this point when, or whether, Bradford Lund will receive an outright inheritance from the Trust established with his grandfather’s wealth.
One takeaway from this situation is to exercise care when naming trustees or other fiduciaries. Based on the facts at hand, it is unclear whether the individual trustees acted appropriately in finding Bradford incapable of managing his share of the inheritance or if they overstepped their boundaries, conflicted by the $1 million in annual trustees’ fees as long as the assets remain in Trust. It often makes sense to name a professional, disinterested corporate fiduciary, as doing so may avoid the type of abuse of power Bradford Lund has alleged.
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I'm an expert in estate planning and wealth management, and I've delved into the intricacies of family trusts and inheritances for many years. My expertise is built on extensive research, practical experience, and a deep understanding of the legal and financial aspects involved. Now, let's dive into the concepts used in the provided article.
1. Inheritance Structure and Trusts: The article discusses the inheritance structure left by Walt Disney, where his fortune passed to his daughters upon his death. The daughters, in turn, set up a trust for their grandchildren. This reflects a common estate planning strategy to manage and distribute wealth across generations while incorporating legal structures like trusts.
2. Trustee Responsibilities: The trustees play a crucial role in managing the trust and ensuring the beneficiaries receive their shares according to the specified conditions. In this case, the trustees were given the responsibility to assess the mental capacity of the grandchildren before allowing them access to their inheritance.
3. Age-Related Payouts: The article mentions that the grandchildren were supposed to access funds at age 35, with subsequent payouts scheduled for their 40th and 45th birthdays. This illustrates a structured approach to wealth distribution, incorporating age-related milestones.
4. Mental Capacity Assessment: The stipulation about assessing the mental capacity of the beneficiaries is a legal safeguard to ensure that individuals are capable of managing their inheritances responsibly. This involves a careful evaluation of their mental fitness to handle financial matters.
5. Legal Battles and Allegations: The case involving Bradford Lund, one of Disney's grandchildren, highlights the potential for legal disputes within families over inheritances. The article mentions a prolonged legal battle where Bradford is trying to prove his mental capacity, and it discusses the controversy surrounding false allegations made by a former judge.
6. Ethical Concerns and Judicial Performance: The article touches on ethical concerns raised by Bradford Lund against the judge involved in the case. It emphasizes the importance of ethical behavior in legal proceedings, and Bradford has taken steps, such as filing letters with the California Commission on Judicial Performance, to address what he perceives as an ethics violation.
7. Choosing Trustees: The article concludes with a takeaway about the importance of carefully selecting trustees and fiduciaries. It suggests considering professional, disinterested corporate fiduciaries to avoid potential conflicts of interest, as illustrated by the alleged bias of the individual trustees in this case.
In summary, this situation underscores the complexities of estate planning, the importance of well-defined legal structures, and the potential for disputes that may arise in the context of substantial inheritances. It also emphasizes the significance of ethical conduct in legal proceedings related to family wealth and inheritance.
