
Luigi Mangione Trial: A Cautionary Estate Planning Tale
In a surprising revelation, Luigi Mangione, the suspect charged with murdering UnitedHealthcare CEO Brian Thompson, stands to lose a significant inheritance from his grandmother. Her will explicitly stipulates that the family’s fortune will be passed down to children and grandchildren that have not “been charged, indicted, convicted of, or plead guilty to a felony.”
This is an interesting example of what can be done in a will or trust to give instructions relative to distribution of proceeds. It not only distributes the assets, it incorporates the grandmother’s views and how she wished her family to live their life so to speak. To her the legacy she was leaving appeared to be more than assets, but an incorporation of her view of right and wrong.
Virtually any strings can be attached to a will or trust, as long as they do not violate the law or public policy. It’s important to remember the person creating the will or trust is the “owner” of the asset and thus can do whatever they wish in distributing the proceeds.
The language used by Luigi’s grandmother is broad and allows the trustees to withhold money if the beneficiary has been “charged, indicted, convicted of or pleads guilty”. In this case it seems the mere charge of a felony can prevent Luigi from receiving the inheritance proceeds. Including this language makes it clear that even if Luigi is found not guilty, the trustees will exclude him from the inheritance. Of course, Luigi’s attorneys will probably challenge if he is acquitted, but will likely lose that argument.
Many people include specifications on the distribution of inheritances – anything from age specifications to provisions – to make sure the beneficiary is not abusing alcohol or drugs at the time of the owner’s death. I have professionally drafted many wills and trusts for clients with these kinds of specifications.
This case also raises another important point in legacy planning, who is the person(s) to decide these issues (trustee)? In this case, one of the trustees is Luigi’s dad, and I believe this would be a very hard decision for a father to make. While he may be up to the task, most parents wouldn’t have the “guts” to disinherit a family member, particularly a child or sibling. A professional fiduciary with no ties to any of the possible beneficiaries should always be considered as an option
Two important takeaways from this case are the distribution of assets can include any “strings attached”, and choosing a fiduciary to distribute the assets according to your instructions is a major decision which should include serious consideration of the individuals ability to make difficult decisions.
Although this case involves a family with substantial assets, it serves as a lesson and guide for all families.
Feel free to give the Estate Planning attorneys at Fausone & Grysko, PLC a call when you are ready for a discussion of legacy planning. If you have questions about planning your legacy and estate, please fell free to contact the Estate Planning attorneys at Fausone & Grysko, PLC. Schedule a Free Consultation or call our office at (248) 380-0000.