A Cautionary Tale
The Wall Street Journal published a lengthy story on the travails of a family that owns an art trove worth an estimated $1 billion (“The $1 Billion Art Collection That’s Tearing a Family Apart,” February 3, 2024). The most critical factor concerns execution of a new will under unusual circumstances.
Morton Nuemann became wealthy in the 1920s, and began collecting art. His son Hubert joined the endeavor, and shifted the emphasis in collecting to modern art. Early works by Man Ray, Miro, and Picasso were acquired.
Hubert married Dolores Ormandy in 1954, and the couple had three daughters. They separated in 1989, but never divorced. The couple continued to attend art fairs together, and Dolores insisted on the family celebrating holidays and birthdays together.
In February 2015, Dolores fell and broke her hip in her apartment. It was twenty minutes before a neighbor heard her cries for help, and notified the middle daughter, Belinda. Dolores was rushed to the hospital. According to Belinda, while waiting for her surgery Dolores asked that her estate planner be contacted. The next morning, Belinda called the attorney.
According to later court testimony, Belinda told the attorney that Dolores no longer wanted to treat the three daughters equally, as provided in her earlier will. The attorney spoke to Dolores, who confirmed the change in planning objectives. A new will was drafted that day and brought to Dolores to sign before the surgery. It named Belinda as the sole executor of Dolores’ estate.
A week later, while still in rehab, Dolores asked again to meet with her estate planner. She wanted 10% of her estate to pass to her oldest daughter, and $1 million to the youngest daughter. The estate included a painting estimated to be worth more than $30 million. The attorney testified that Dolores characterized Belinda as “financially insecure” and so she needed more from the estate. The attorney admitted that she had no idea Dolores was on painkillers and sedatives during the conversation. Another new will was drafted and signed.
No one but Belinda knew about the new will. The next year Dolores asked her youngest daughter, Melissa, for help in finding a new estate planning attorney. Melissa wrote to an attorney, “My mother says that she signed a will that doesn’t reflect her intentions and she asked me to contact you.” However, no action was taken, and Dolores died a month later.
The rest of the family learned of the will executed during the rehab from hip surgery only when it was presented for probate. That’s when the legal fireworks began. According to the article, 18 lawsuits have been filed so far, and 12 have yet to be decided.
Two observations. Wills should not be executed during highly charged, emotional periods, as surround a medical emergency. Keeping the terms of a will secret from the heirs is a recipe for litigation, especially if the terms vary substantially from their expectations.
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