Sumner Redstone’s Controversy in Estate Plans Everywhere

As the battle continues over Sumner Redstone’s billion-dollar estate, with the current mess of lawsuits, many are questioning his estate planning. Experts are saying that Redstone’s controversy is happening in epidemic proportions with people and charities moving in on the estates of wealthy elders. As the elder population continues to live longer, this problem increases and only becomes worse.

Redstone’s pattern creates the need for settlor’s to make clear provisions in trust. It would be important to define incapacity and appoint who would determine incapacity when the time comes. Redstone’s trust does not define incapacity and gives little control to others while he remains alive. With a well-drafted trust, Redstone could have included a provision (or built it to go into effect after a certain age) allowing a majority of trustees to conclude he did not have the capacity to remove a trustee. Ultimately, it seems Redstone has brought on his own problem.

See James B. Stewart, In Sumner Redstone Affair, His Decline Upends Estate Planning, NY Times, June 2, 2016.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.