What Will Happen to Jeffrey Epstein’s Assets?
In light of Jeffrey Epstein’s recent suicide in prison, the question for those who were traumatized by his actions is – whether they can still collect from his estate if they are able to secure a legal judgment for damages.
At the time of his death, Mr. Epstein’s estate was worth $577 million dollars according to Forbes Magazine. About 48 hours prior to his death, he executed a will naming his brother as the sole beneficiary of a trust that he created through the will. Mr. Epstein’s assets include substantial interests in shares of various companies and real estate he owned in New York, Paris, New Mexico and the Virgin Islands. $200 million was his interest in “private equity and hedge fund investments.”
Since the assets are in different locations, an initial determination will be required to determined which state will decide any trust and estate issues. This issue formally requires a determination of where Mr. Epstein’s domicile was when he died. It is likely that the Virgin Islands will be named his domicile because that’s where he filed his tax returns from for years prior to his death.
Several women have already filed lawsuits against Mr. Epstein and other women are expected to file lawsuits too. “Mr. Epstein was accused of running a sex trafficking ring between 2002 and 2005 involving girls as young as 14, which he denied. He had been convicted in 2008 of procuring an underage girl and was registered as a sex offender under a controversial plea deal agreement with Florida prosecutors.”
Can the victims collect from the trust?
In principle, when assets are placed in trust, if the trust document is correctly formed, then only the appointed trustee can access the trust assets – on behalf of the named beneficiary.
According to a professor law at Cornell Law School, “the terms of the trust remain private because they are not part of the will itself.”
According to Forbes, there are two arguments that the victims can use to try to collect the trust assets when there is a verdict in their favor or a settlement is reached.
- The first argument is that the trust is a revocable trust and not an irrevocable trust. Generally, creditors can seek to collect trust assets if the trust was revocable but not if it was irrevocable.
- The second argument is that the trust is invalid if the purpose of the trust was to defraud creditors. This argument could depend on whether the law of the state that determines the trust validity requires that the creditors have a judgement at the time the trust was created, have already a claim, or if it is enough to argue that it was reasonably likely that claims would be filed.
Additionally, the will itself could be challenged on several grounds including:
- It wasn’t properly executed
- Epstein did not have the testamentary capacity to prepare a will, in part, because he was contemplating suicide
Another question that will need to be resolved is – at what stage of litigation over the will can the IRS claim that it is due any estate taxes or fiduciary/income taxes?
Legal experts predict that it may take up to 10 years to resolve the claims of the victims and the litigation over the estate assets.
Speak with an experienced Arizona asset protection lawyer today
There are correct ways and incorrect ways to help protect your assets from the reach of creditors after you die. Our Tempe Arizona asset protection lawyers review your asset and debt situation including open claims. Once we understand your financial interests and who you want to be the beneficiary of your assets, we work to draft the right legal documents to protect your interests while minimizing what creditors can claim.
At Yaser Ali Law, we’ll help maximize the assets that your loved ones can enjoy after you pass away. For help understanding your options, please call us at (480)-442-4175 or complete our contact form to make an appointment.