A judge approved investment strategy changes on behalf of the 12-year-old daughter of actors Heath Ledger and Michelle Williams that are aimed at providing better returns in the wake of tax law changes since the 2008 death of the girl’s father.
Los Angeles Superior Court Judge Edward Moreton granted a motion by plaintiff John LaViolette, the guardian of the person and estate of Matilda Rose Ledger, broadening his authority to invest and manage funds in the girl’s blocked account.
A 2009 court order had limited investing the funds in pre-funded municipal bonds, but those funds issued after 2017 are now taxable because of Congress’ tax reform legislation, according to LaViolette’s court papers. The funds at that time totaled about $9 million, according to court records.
Moreton’s March 23 order authorizes LaViolette, with the assistance of professional money managers, to invest the funds in a conservative portfolio made up of 60 to 80 percent investment-grade funds; 20 to 30 percent low-risk US equities; and 5 to 15 percent low-risk, non-US equities.
The judge also authorized the payment of about $30,000 in attorneys’ fees from the blocked account to compensate LaViolette’s attorney for preparing the motion and implementing the court’s order.
“Although interest on current pre-refunded bonds would remain tax-exempt, as the current portfolio matures, the investment advisers will need to reinvest the proceeds in alternative investments,” according to LaViolette’s court papers. “It is therefore in the minor’s best interest to broaden (LaViolette’s) investment authority by allowing investment in assets other than pre-refunded municipal bonds.”
Ledger was 28 years old when he died Jan. 22, 2008, of an accidental prescription drug overdose in New York City. He was nominated for an Oscar for his role in 2005’s “Brokeback Mountain.” His co-star in that film, Michelle Williams, is Matilda Rose’s mother. The 37-year-old actress and Ledger ended their relationship in 2007.
Ledger’s performance as the Joker in the “The Dark Knight” brought him a posthumous Academy Award for best supporting actor.