According to the New York Post, the grandmother of Luigi Mangione, alleged killer of United Healthcare CEO Brian Thompson, left Mr. Mangione and her other heirs a substantial fortune when she passed away in 2023. The Post and other sources estimate an estate worth between $30 million and $100 million, which is apparently held in Trust for the family. However, it appears that Luigi’s legal troubles could prevent him from cashing in his inheritance.
Estate documents reportedly include a provision potentially disinheriting anyone charged, indicted, convicted of, or pleading guilty to a felony. The documents further state that family members charged with “heinous” or “violent” crimes should be given special scrutiny.
While there is virtually no question that the second-degree murder charge against Mr. Mangione would qualify as a “heinous” or “violent” criminal charge, it is important to note that Mr. Mangione’s grandmother worded her Will in such a way that could still allow Mr. Mangione a path to inheritance. As with all estate planning documents, a close inspection and analysis of the wording matters.
In this case, the Post reports the Will states, “[i]t is my precatory desire that the Trustees particularly consider invoking their discretion to implement this Section if the felony is a common law felony, a statutory felony if it is the codification of a common law felony, a heinous felony, any felony involving a physically violent act against another person or property or any drug related felony involving distribution or intent to distribute any type of drug or illegal substance.”
In other words, the Last Will and Testament of Mr. Mangione’s grandmother appears to leave final discretionary authority in the hands of the trustees of the family Trust, who would ultimately be the arbiters of whether Luigi Mangione should receive an inheritance. Interestingly, Luigi Mangione’s own father is reportedly a trustee of the family Trust. This could set up a scenario where the suspect’s own father decides whether he can tap into an inheritance, potentially to pay legal fees, thereby diminishing the inheritance of reportedly dozens of other beneficiaries.
Will and trust provisions like the kind described above are fairly common and a class of “incentive clauses.” Testators and their estate planning attorneys may use incentive clauses to discourage poor behavior, substance abuse, and other undesirable activities. But, they could also be used encourage certain activities, including
Education:
Trusts can be set up to cover educational expenses, such as tuition and books. Distributions may be contingent on maintaining a certain GPA, pursuing advanced degrees, or enrolling in specific fields of study or institutions.
Productivity:
To prevent a beneficiary from becoming complacent, include provisions that encourage work or academic success. For example, cash distributions can be tied to employment status, or business ownership. Incentive distribution schemes help motivate the beneficiary to remain productive.
Homeownership:
Trusts can be structured to help beneficiaries purchase homes, either by making down payments or by buying the home and allowing the beneficiary to buy it later. The trust may also set limits on the type of home, and in cases of financial irresponsibility, it can retain ownership.
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Photocredit: Facebook/ Luigi Mangione