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Louis Falk and his wife Marice had combined assets of 1.6 million
dollars. In 1990 Louis decided to do estate planning, by setting up
revocable trusts. To fund the trust it was essential to divide the
properties jointly owned with his wife. Louis was an attorney for 41
years, specializing in probate and real estate and was also represented by
counsel. In the prior year in 1989 his wife Marice attempted suicide. She
was diagnosed by the Miami-Dade County court to be a paranoid
schizophrenic. Marice was Baker acted and was declared incompetent. Her
daughter Linda was appointed Marice's guardian. By order entered in 1990
the court approved the splitting of the jointly owned assets and to place
the Falk's property into two revocable living trusts one for Marice and
the other for Louis. The trust provided for discretionary income for the
lifetime of the surviving spouse. On demise of the husband and wife the
principle was to go to their daughter Linda and son Steven. The trusts
reserved the right to Marice and Louis to revoke and amend trusts with the
written consent of the trustee Linda. Out of concern for his son Steven who was mentally ill, Louis modified
his revocable trust providing that on his death, his estate was to go to
the daughter Linda and in trust for his son fearing that in her mental
condition Marice would not provide for the mentally disabled son. Louis
died shortly thereafter in 1993 at age 83. In 1995 the elderly Marice was
informed by daughter Linda of the change made by Louis in his revocable
trust. On Marice’s demands and threats, Linda voluntarily terminated the
guardianship. Marice's behavior became increasingly contentious and
erratic and she estranged herself from Linda. In her schizophrenic state
Marice made constant death threats against Linda and her family. Marice
retained attorney Richard Milstein, to file suit against Linda, for
alleged undue influence over the father Louis to appropriate his share of
the estate from Marice, for assigning inaccurate values in splitting her
parents' properties and for giving more to the father than the mother.
Linda was represented by counsel. Marice was also represented by counsel,
by Milstein, an attorney with Akerman, Senterfitt. Milstein billed Marice
for substantial fees for himself as well as for a number other lawyers in
the firm for allegedly conferring with each other.
Although a trial was held, Milstein never proved undue influence over
the father by Linda. Linda named 43 individuals on her witness list. There
was testimony from the attorney of the late Louis that he was of sound
mind at the time he modified his revocable trust. A 30 minute video tape
of Louis was presented in which he expressed his desire to modify his
revocable trust to make his daughter and son the beneficiaries upon his
death. It was proven that Linda never contested or thwarted any legal
matter or desire of her parents, nor had she personally inherited,
benefited, or appropriated any money from the estate or even took
guardianship fees. The charge of undue influence was dropped. It was
conceded that the estate planning saved the estates of Marice and Louis
over a quarter million dollars, which otherwise would had to be paid out
in estate taxes. Milstein pressed on with accusations and claims of
damages, surcharges and for interest against Linda in a total sum in
excess of 1.2 million dollars. Linda was subjected to an 8 day non-jury
trial. In effect Judge Shapiro nullified the orders of the predecessor
judges approving the various proceedings on the revocable trusts. A
judgment of close to 1.3 million dollars was entered against Linda. She
was then subjected to damaging interviews Milstein gave to the news media
and was harassed with derogatory letters disseminated in Linda's
neighborhood. Linda was forced to file for Chapter 11 bankruptcy to
protect her and her husband's successful real estate business. These
businesses had nothing to do with the revocable trusts into which Linda
was drawn into out of consideration for her family.
While the proceedings were pending Marice had undergone two open heart
surgeries and suffered from breast cancer. A few months after the final
judgment was entered in March 1998 Marice died in August, 1998 at the age
of 74. So, that she never enjoyed any benefit from the extensive
litigation she pursued, except for receiving substantial bills for legal
fees. Milstein alone amassed legal fees in the sum of $388,000 and a fee
of $40,000 for the accountant. Linda finally reached a settlement but,
Judge Shapiro's apparent main concern was that Milstein's and the
accountant be paid in full the substantial fees and expenses they claimed.
Linda was forced to settle the case with Mr. Milstein so that she could
terminate the forced bankruptcy and move on with her life. She
relinquished her right to what little was left, in the approximate sum of
$300,000 from her parent's 1.6 million dollar. Only that $300,000 was left
after all the other legal and professional fees and expenses were paid.
That remaining sum was used to set up a trust for the mentally disabled
brother Steven.
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Endnotes
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