Hackard Law - Estate Planning
Call for free initial consultation.

916-229-6991

We speak Spanish and Russian.

Liz Hurley's Rich Son | Damian Hurley's Inheritance

Liz Hurley YouTube.jpg

Image Credit: Brian Minkoff - London Pixels

Estate taxes can easily eat up large percentages of a person's assets, which is why the strategy of creating an irrevocable trust to transfer wealth from one generation to another is often a good idea. Here at Hackard Law, we often recommend the establishment of irrevocable trusts when we think it will be to the long-term benefit of our clients.

But like all such estate planning tools, there are pluses and minuses. Consider the case of Dr. Peter Bing, a doctor and philanthropist in Los Angeles who inherited a fortune from his father, Leo Bing, a hugely successful New York City real estate developer in the 1920s. By some accounts, Peter inherited a billion dollars from his father, and Peter's son, Stephen, inherited $600 Million when he turned 18 years old in 1983.

Peter Bing surely had in mind the preservation of his inherited wealth when he established an irrevocable family trust in 1980 that transferred assets from his personal fortune to the benefit of his yet unborn grandchildren. In that document, he states that any grandchild must be "raised by my children as part of their families" and that the trust "would not benefit any person brought out of wedlock unless that person had lived for a substantial period of time as a regular member of the household."

This might have been a completely academic clause in an otherwise boilerplate document, except that 21 years later Dr. Bing's son Steve had a brief relationship with the actress Liz Hurley, the result of which was that Liz gave birth to a son, Damian. Steve Bing also had a second child born out of wedlock, Kira Kerkorian, whose mother was the pro tennis player Lisa Bonder. Though Bonder was briefly married to the billionaire Kirk Kerkorian, Steve Bing proved to be the actual father of Kira.

It was Kira Kerkorian, four years older than Damian, who first raised the issue of being a beneficiary of her grandfather's trust. Once she claimed a portion of that trust, Damian followed with his own demand.

From the very start, Peter Bing tried his best to bar both his biological grandchildren from receiving any portion of his trust because he "never met" them. In his words: "Regardless of whether, when and if Stephen met with or had any relationship with Damian or Kira while they are or were minor because neither was raised by him during their formative years l do not consider them my grandchildren."

A judge in Los Angeles disagreed. Last week it was the ruling of a Court that both Damian and Kira are rightful heirs, and are therefore entitled to access the family trust.

None of us can predict the future, so when it comes to creating irrevocable trusts, as this case clearly shows, it is important that the language be highly specific to the wishes of the trust maker. If Dr. Bing wanted to make sure that any grandchildren born out of wedlock were excluded, his lawyers could certainly have crafted more precise language. Most likely, back in 1980, the scenario that eventually played out never occurred to him or them.

Lesson learned.

Before you go, please let me know if you'd like to receive a free copy of my first book, The Wolf at the Door, or my new book, Alzheimer's, Widowed Stepmothers & Estate Crimes. Just send your address in an email to me at [email protected], and I'll be glad to put one in the mail.

No Comments

Leave a comment
Comment Information
Rated By Super Lawyers Michael A.Hackard SuperLawyers.com AV PREEMINENT Martindale-Hubbell Lawyer Ratings Avvo Rating 10.0 Superb Top Attorney Litigation Million Dollar Advocates Forum Multi-Million Dollar Advocates Forum Top Attorneys In Sacramento Lead Counsel | LC | Rated Hackard Law A Professional Law Corporation BBB Business Review Best Real Estate
Lawyers in
Sacramento
2016

*AV Preeminent is a certification mark of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the judiciary. Martindale-Hubbell ratings fall into two categories - legal ability and general ethical standards.

Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters.