The co-executors of Huguette Clark’s $400 million estate have recently been removed by the New York Surrogate’s Court after allegations arose claiming the two men had committed tax fraud in their handling of the estate. Manhattan Surrogate’s Court Surrogate Kristen Booth Glen removed the two men and left the managing of the estate to attorneys working for the Office of The Public Administrator of New York County, whom she had previously appointed as a third estate administrator.
The allegations that ended up costing attorney Wally Bock and accountant Irving Kamsler their positions claimed that the men had failed in numerous duties, and had engaged in such activities as making false statements to the IRS, filing false tax returns and failing to pay taxes on gifts Ms. Clarke had made. The impact of the alleged wrongdoing may end up costing the estate as much as $90 million in fines and unpaid taxes.
The judge suspended each man from the estate, a position that would have earned them each about 2 percent of the estate’s total value, or $8 million each. The allegations against them encompass actions they took over the last 15 years as they acted to manage Ms. Clarke’s affairs. The heiress died in May of 2011 at the age of 104, leaving behind a still unfolding drama that has lead to numerous court challenges and revelations about the life of the reclusive heiress who had lived the past several decades secluded in a New York hospital room.
Latest posts by Michael Robinson, Estate Planning Attorney (see all)
- Reasons an Estate Plan Could Be Challenged: Part 3 – Fraud - January 22, 2020
- Question and Answer Session With an Elder Law Attorney - January 21, 2020
- Five Things You Need to Know About Medicaid Planning - January 16, 2020