In one of the least controversial provisions, Huguette M. Clark’s, will revealed that she bequeathed one of Monet’s Water Lilies paintings to Corcoran Gallery of Art. Monet painted approximately 250 of them. Huguette Clark passed away just shy of turning 105.
Ms. Clark left her nurse about $30 million. She left $500,000 each to her accountant and lawyer who are already under financial investigation. She had her will signed and witnessed at age 98. Given all the circumstances involved, her will is likely to be contested. There was no mention of any life insurance policies.
Some of the problems evident in this estate can be avoided in the life insurance realm. Spouses should establish cross ownership of their life policies. Keep in mind the owner a life insurance policy can change the beneficiary’s name at any time to whomever he or she wants. Being both the owner and beneficiary of your spouse’s life insurance policy eliminates the possibility of a wayward spouse changing the beneficiary or cancelling the coverage. An irrevocable life insurance trust (ILIT) is also a solution. Being irrevocable, the policy is removed beyond the capriciousness of any possible changes.
It will be interesting to see how challenges to Ms. Clark’s will and to the professional conduct of her attorney and accountant pan out in court. Also it will be interesting to see the ultimate fate of the bulk of her art collection, a charitable gift, which includes works by William Merritt Chase and John Singer Sargent.
