Taxation & Estate Planning

Chicago Priest Accused of Financial Exploitation

By Joel A. Schoenmeyer

This morning's Chicago Tribune has a front-page story about Chicago priest Thaddeus Dzieszko. Rev. Dzieszko is being accused of taking financial advantage of one of his parishioners, Waleria Krzemien (who is 93 years old).

Here's the heart of the dispute:

In April, legal documents show, Krzemien deeded her home to a newly created "Trust Number 101," with Dzieszko as the trustee. Trust documents say the home would belong to Krzemien during her lifetime but pass to Dzieszko upon her death.

There are sharp disputes about whether Krzemien was mentally competent when she signed the trust and deed papers.

The law firm that prepared the trust document is also in hot water, over this case and a couple of others.

I don't know if there's any wrongdoing here, but I will say that one of the most difficult parts of my job as an estate planner is trying to make sure there isn't any financial exploitation. That's very difficult -- I'm not a doctor (I don't even play one on television!), so all I can do is go with my instincts about whether a potential client is capable of executing documents. When I think this is an issue, I do try to go the extra yard and ask the clients more questions (generally, and about their specific wishes).

Then there's the subject of caretakers and what's called "undue influence." There certainly ARE cases where they overreach and take advantage. But there are also a lot of cases where the caretaker is the only person interacting with and showing interest in the elderly person, cases where the elderly person really does want to benefit the caretaker at death. It's pretty easy (too easy?) for relatives to step in much later -- often for the first time -- to express concern for the older person, only because they want an inheritance that they don't deserve.

I try to address the caretaker issue by meeting with clients alone. In our one-on-one interview, I try to make sure that the client hasn't been forced to change his or her Will or make certain gifts to the caretaker.

Full post as published by Death and Taxes Blog on February 14, 2011 (boomark / email).