Sheppard Law Firm April 2021

Up in Flames The Fyre Festival’s Legal Fallout for Influencers Influencer marketing has long been a legal gray area, but

The local economy was devastated. “They had engaged with so much of the local community to try and pull this off. There were hundreds of day laborers working,” says Smith. “Fyre had such a high profile that I don’t think anyone could have assumed that it wouldn’t work out.” As the Fyre Festival fell apart, Gregory Messer — the trustee in charge of overseeing the bankruptcy for Fyre Media — looked into the finances. He began to suspect that there had been “fraudulent transfers” between the founders and many of the event’s promoters, and he began to sue the celebrities and influencers that drove the hype behind the festival. For example, McFarland and Ja Rule reportedly paid Kendall Jenner over $275,000 to publish an Instagram post promoting the festival. Although Jenner denied liability, she did not disclose on the post that it was paid and sponsored. Messer’s attorney further argued that Jenner had not told her Instagram followers that she’d pulled out of the festival after learning of its disastrous problems. Although more legal parameters will likely spring up in the future to further define the limits of influencer marketing, this will certainly make any celebrity think twice about accepting money to promote events and brands. And that’s definitely for the best! Do all estate plans go to probate? Yes, but the severity of probate can be managed. For example, when you die without a will or valid estate plan, the state courts determine that you have died “intestate,” which means the state will decide how your assets are managed. This can often include a long, complicated, and costly court process. A legally established will drafted by an experienced estate planning attorney can ensure your wishes are met, safeguards are put in place, and the time your estate spends in probate is very minimal. What is a power of attorney? There are two durable power of attorney designations. A durable financial power of attorney gives someone you trust the power to make financial decisions for you should you become incapacitated and unable to do so. A durable medical power of attorney can act on your behalf when health-related decisions need to be made in that same instance. These are powerful designations, so it’s important to have honest conversations with those you choose to fill these roles. If your loved ones have additional complex questions about your estate plan, we can help explain. Call our office today to learn more.

recently settled celebrity lawsuits related to the Fyre Festival — a failed luxury musical festival — have definitely added some color to the debate. The idea for the Fyre Festival came from rapper Ja Rule and his business partner Billy McFarland, a 25-year-old CEO of a luxury concierge service. The duo created the event together and touted it as the world’s most expensive music festival. They’d also launched an attractive marketing campaign which included celebrity promotions by Kendall Jenner, Bella Hadid, and other influencers. All the while, the organizers knew the Fyre Festival was doomed from the start. In lieu of a multiday, luxury experience, thousands of people were scammed and left stranded in the Bahamas instead. “[The organizers] had six to eight weeks to pull off something that should have taken close to a year,” says Chris Smith, who directed a Netflix documentary on the festival. “But what was most surprising to me was going to the Bahamas and seeing the aftermath of what was left behind and the effect on the people there.”

n a n c i a l L i t e r

As a member of the Sheppard Law Firm family, you are leagues ahead of many Americans. According to a Caring.com survey, only about 32% of Americans have an estate plan. That figure is down about 24% from 2017 survey results done by the same organization. (In 2017, AARP found similar numbers.) While that number is shocking, it should be comforting to know that you and your family are protected. However, this statistic could mean the very heirs you hope to leave in charge of your estate — or to bequeath your assets to — will have no clue how to utilize them or what this means! April is Financial Literacy Month, making it the perfect time for you to discuss this with your loved ones. Below are three questions to get you started. What’s the difference between a will and a trust? A will outlines how you would like your assets to be managed and distributed after you die. (A living will functions similarly though it’s used if you become incapacitated but are still alive.) Meanwhile, trusts allow you to distribute your assets to your beneficiaries before or after your death. There are multiple forms of trusts, including those that can be used for charitable giving. Teach Your Heirs About Your Estate

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