You don't need to be rich and famous to need an effective Estate Plan. And all the money and fame in the world doesn’t always mean folks get the best estate-planning advice.
Create an Estate Plan.
Musician Prince never did, and because of that, even a prison inmate popped up to claim he deserved a share of Prince’s estate, worth hundreds of millions of dollars. The court battle drags on, five years after Prince’s sudden death.
Billionaire Howard Hughes died without a will. Somebody found one later, but it was proved to be a fake. A court battle ensued. It took around 34 years to straighten out what should be done with his $1.5 billion.
Singer Aretha Franklin died without a will. Once again – are you seeing a theme here? – her $80 million estate ended up in court.
Keep your Estate-Planning documents in a safe and obvious place.
Olympian athlete Florence Griffith Joyner may have had a will – somewhere – but nobody could find it. The matter ended up in court, once again, for years. The issue was whether Joyner intended her mother to live, rent-free, in the Joyners’ home.
If you’re getting a divorce, don’t delay your planning.
Despite that singer, Barry White and his second wife were in the process of separating at the time of his death, she ended up with his entire estate. His children from other marriages, and his live-in girlfriend at the time, all sued. The law says that until a divorce decree is signed, you are still married, and if you pass before that and your estate plan includes your soon-to-be ex, that person will get your property.
Don’t try this at home.
Actor Philip Seymour Hoffman didn’t like the idea of his children becoming “trust-fund kids,” so he left everything to the mother of his children, to whom he was, unfortunately, not married. The result was a tax bill of millions of dollars. This could have been avoided if he had consulted an attorney with estate-planning expertise.
Don’t try this at home 2.0.
Supreme Court Justice Warren Burger typed up his own short will to dispose of his $1.8 million estate. He may have known Constitutional law, but not estate planning. His family paid a huge chunk of his riches in estate taxes that, once again, could have been avoided if Justice Berger had planned correctly.
If big changes happen in your life, let us know right away.
Actor Heath Ledger’s outdated will left everything to his parents and sisters, but after that will was written, he had a daughter with his girlfriend. It was only by the grace of Ledger’s family that they gave the girlfriend and daughter some of Ledger’s money. Don’t rely on your family to have to make those decisions for you.
Put promises in writing.
Marlon Brando’s housekeeper claimed he had promised that she would get his house when he died, but he hadn't put that in writing. She sued. Three years after Brando’s death, his estate settled with her for $125,000.00.
These are cautionary tales...and while your private affairs won’t necessarily end up in the newspapers...effective planning, with an Estate Planning attorney WILL prevent unnecessary expenses and legal entanglements down the road. We’d be happy to chat with you about a plan that will work for you and get the process started.