What Can We Learn From The Simpsons? Lessons on Future Assignments of Interest

Sam Simon, co-creator of The Simpsons, passed away in 2015 leaving behind his ex-wife, scream queen Jennifer Tilly—also Chucky’s bride and the newest Friend of The Real Housewives of Beverly Hills and… professional poker player. Their divorce awarded Tilly 25% of Simon’s income from The Simpsons (34 years of syndication and licensing! Aye Carumba!). The two remained best friends after their divorce until Simon’s passing. Simon was sick for quite a while prior to his passing and wanting to protect Tilly further, Simon executed a beneficiary designation directing that Tilly continue to receive her net proceeds that she was entitled to during his life.

Discussing Future Assignments of Interests

An assignment is the transfer of some identifiable property, claim, interest, or rights held by one party called the “Assignor” to another party called the “Assignee.” Sometimes we want that transfer to take place right away and sometimes we want that transfer to happen later, at a future time. A future assignment of interest is a document where one transfers their interest at a later date, like after their passing.

Legal Requirements for Validity:

• Compliance with the Statute of Wills: The future assignment of interest must have the same execution formalities of a last will (2 witnesses, etc.).
• Creation of Rights Post-Death: We see the future assignment as a testamentary provision as it doesn’t create a right in the Assignee until after the death of the Assignor. An instrument which does not pass any interest until after the death of the maker is essentially a will per F.S. Sec. 732.701(1).
• Pre-existing Interest: Additionally, in order to assign an interest, one must first have a fully vested and legally enforceable interest in order to assign a part or all of their interest to the Assignee. You can’t give what you don’t have.
• No Prohibitions on Assignment: The asset itself must also not prohibit an assignment. The assignment, by default, is generally allowed, but some assets are not assignable. The asset itself limits the ability to assign an interest.

Practical Applications:

Let’s say someone has 100% interest in an LLC (not great because an LLC with one member offers no liability protection, but I digress). That individual can draft an assignment of interest and transfer their share in the LLC to their beneficiaries. However, the operating agreement (if one exists) must not prohibit or limit the assignability of a member’s interest.

Use Cases for Assignment of Interests:

1. Inheritance: The beneficiary may assign their future interest in an estate.
2. Royalty Income Payments
3. Commissions from Agreements
4. Settlements from Litigation

So, there you have it. We learn that I don’t really love cartoons, but The Simpsons was great TV (some things you can’t deny). We also learn that future assignments of interests are a real thing and can really come in handy, just ask Jennifer Tilly!