You are bound to fall flat on your face if you don’t learn from your mistakes. As far as When it comes to Estate Planning, you have to learn from the mistakes of others. If you don’t, you will repeat them in all probability. Celebrities and high-profile people commit a lot of mistakes in Estate Planning.
Below are some of those celebrities whose mistakes have been highlighted in the media over the past few years. Details have also been given regarding where they faltered. Keeping an account of these would prevent you from following in their footsteps. Taking note of them would help you in the long run as you learn the lesson of what you should do and what you shouldn’t.
James Brown
James Brown was a popular singer, songwriter, dancer, musician, all rolled into one and has given hits such as It’s a Man’s Man’s Man’s World and others. The Rock and Roll Hall of Fame inductee handed over the copyrights of his creations to an educational foundation. Brown was always involved in activism regarding preserving the need for education among children and youths. He declared that all his tangible assets would go to his children. Brown also donated $2 million to educate his grandchildren. The main issue was the ambiguous language that was used in his documents. As a result, his girlfriend and her children filed a case against him. 6 years down the line, a final settlement was reached after shelling out millions in estate taxes.
Michael Jackson
Who doesn’t know Michael Jackson? He was popular as the King of Pop even years after his death. Michael is still famous for his contribution to the world of music and dance. His fans would find it hard to believe that their idol made a silly mistake in his lifetime. As per reports, Michael had a trust. Surprisingly, he never donated any money to the trust. This eventually led to a case in the California Probate Court. It was a rather long and expensive battle to decide the fate of his estate.
James Gandolfini
James earned fame with his portrayal of Tony Soprano in The Sopranos, the popular drama. He won numerous awards. Now, it’s very hard to believe that a man of his stature would commit the mistake of leaving a meager 20% of his entire estate to his better half. If he had left a significant portion for his wife, he could have pretty well avoided the estate tax on that. Consequently, more than 50% of his total estate, which comprised a fantastic art collection, was spent behind estate taxes.
Howard Hughes
The business magnate, film director, and philanthropist rose to prominence in Hollywood, producing films such as Hell’s Angels, The Racket, and Scarface. He was a trained pilot and was also honored with an induction into the National Aviation Hall of Fame. Hughes wanted to donate his total fortune of 42.5 billion for medical research. Unfortunately, a valid will was not available. Not even after he left for his heavenly abode. What happened to his fortune then? Hughes’s 22 cousins got equal portions of it while donating Hughes Aircraft Co., to the Hughes Medical Institute before breathing his last. It was not within his estate.
Michael Crichton
Any book lover would identify who Michael Crichton is. Even though he is no more amongst us, he is alive through his works. As an author, he has authored some timeless novels such as Jurassic Park, The Great Train Robbery, The Terminal Man, The Lost World, son, and so forth. Michael died when his fifth wife was pregnant with his child. His son came to this world after he was gone. Therefore, his Will and Trust had no idea that a child would take birth after expiry. From one of his previous marriages, Michael’s daughter attempted to keep his son away from the estate. Though the child might have been stakeholders in the estate through the California statute, Michael’s language kind of overrode that.
Doris Duke, Prince, Aretha Franklin, and Casey Kasem are the other celebrities who committed blunders in Estate Planning. If you have an existing Estate Plan, go through your documents properly and ensure that they fulfill whatever wishes you might have.