THE SENATOR'S WILL

Last week I was interviewed by Fox 25 News about Senator Kennedy's will. The TV staff obtained a copy of the will at the Probate Court and then came to see me to ask about its operation.

In the will, which is five pages long, Senator Kennedy gives "all of my property, of whatever kind and wherever located, that I own at my death to the then trustees of the Edward M. Kennedy 2006 Trust." Senator Kennedy went on to say "I have provided in my 2006 Trust for my wife, Victoria R. Kennedy, my children and more remote issue and for the payment of my debts, funeral and burial expenses and the expenses of administering my estate, and for the method of paying all federal and state taxes in the nature of estate, inheritance, succession and like taxes occasioned by my death."

This will is very much like the wills we prepare for persons who have trusts for tax or other reasons. In the Senator's case, there would be significant tax issues, as well as privacy issues. By providing for his family in a trust, instead of in his will, Senator Kennedy has maintained the privacy of the disposition of his assets. The only people who know what the trust provides are the trustees and the beneficiaries.

Senator Kennedy in his will exercised a power to appoint assets in his two blind trusts, by appointing them to the Edward M. Kennedy 2006 Trust. A power of appointment is a power to direct how assets held by someone else, such as a trustee, are to be disposed of.

A blind trust is a trust in which the person establishing the trust grants control to a trustee, who is forbidden to furnish him details of the trust assets. The purpose is to avoid claims of conflict of interest - such as claim that a particular vote was intended to enhance the value of a stock holding. Blind trusts are often used by those in government or by senior executives in publicly held companies who wish to avoid insider trading issues.

You can find a copy of Senator Kennedy's will on our website, Haddletonlaw.com. Call us if you would like us to prepare a will for you.