CELEBRITY ESTATE PLANNING
Ever so often in the news we read about celebrity deaths; some tragic, some natural, some morose. Even less often we hear about the aftermath of such persons death (other than the salacious details of how it happened) from an estate and financial perspective. In an effort to relay the virtues of estate planning, I want to provide a brief case study of a few notable celebrities to illustrate both the “right” way and the “wrong” way to deal with the terminal condition we call life:
James Gandolfini (aka “Tony Soprano”)
While we all know the imposing figure of Tony Soprano, in real life “Jim” was a beloved actor’s actor; he was well loved by his contemporaries and co-stars. Jim also chose to seek the services of competent estate planning attorney who helped craft an estate plan to ensure that his roughly $70 million estate would be handled appropriately. A summary of his plan can be found in article here: https://www.thebalance.com/james-gandolfini-last-will-and-testament-3505105.
As you will see from the article, Jim took care to provide meaningful cash gifts to loved ones, and a percentage of his estate to those closest to him, including his siblings and children. By doing so, Jim provided certainty and direction to those he cared for most.
Prince Rogers Nelson (“Prince”)
On the polar opposite end of the spectrum, Prince neglected to engage in any estate planning whatsoever. While I can’t blame him given his demeanor, his decision causes substantial grief amongst his family (only to be outdone by Aretha Franklin, discussed below). Prince died intestate; in layman’s terms, this means that his estimated $200-300 million estate is governed by Minnesota state law (note: if you die without a Last Will & Testament, the rules of the state where you reside determines where your money goes).
In Prince’s case, Minnesota law states that the closest living relative (i.e. “heirs-at-law) (or group of relatives if they are equally related) receives everything. In Prince’s case, the closest living relative that could be found was his sister and five (5) half-siblings who are eligible to take. While that may not sound so bad that Prince’s siblings received his estate, nearly three years after his death, there are still court cases dealing with this matter (see: https://www.usatoday.com/story/life/2019/04/18/prince-died-3-years-ago-his-estate-still-unsettled-heres-why/3344038002/)
In short, this could have been much easier…. As a simple anecdote to explain “intestacy” I frequently told colleagues that I wanted to sponsor a nationwide manhunt for a person claiming to be a out of wedlock child of Prince since under these archaic intestacy laws, such child could inherit the entire estate, even if the child was never acknowledged.
Aretha Franklin
Another horror story of leaving no will; Aretha left an estate estimated to be worth $80 million. Aretha’s first mistake is that she has four (4) sons, one of whom has special needs. This means that the special needs child will no longer be eligible for any public assistance programs made available by the state. Moreover, because her estate is subject to Probate Court jurisdiction, she has people (including her ex-husband) coming out of the woodworks to seeks a portion of her estate. While these intervening parties have little or no likelihood of taking a portion of the estate, the legal and court expenses, not to mention the time and frustration involved are substantial.
Conclusion
Through the illustrations provided in these case studies, it is easy to understand why even basic estate planning is a necessity. Between family disputes, costly legal bills, and the piece of mind lost by not doing so, you may leave a legacy that your family members may not appreciate.
One last word of advice frequently given to clients: “Let’s be honest — you are never going to see the fruits of the effort that you put into developing an estate plan. You’re dead. However, your efforts to streamline and organize your affairs will allow them to appreciate the gift you have given them beyond simply the “stuff” that you leave behind.