You need an estate plan to protect your assets and loved ones from lengthy, emotionally draining legal battles. Even celebrities with teams of advisors can make estate planning mistakes that turn into headline-making challenges.
At Prime Capital Financial, we understand the intricacies and importance of creating individualized estate plans. These well-known cases can teach you valuable lessons about implementing your own plans.
Handwritten Wills: Aretha Franklin
When Aretha Franklin passed away in 2018, she had no legal will. That alone created a complicated legal situation, as she owed millions in taxes and owned a mix of traditional and unique assets, including real estate, furs, and music rights.[1]
Years later, two handwritten wills were found in her home. Each will had different instructions and would favor different sons. Michigan law recognizes handwritten wills, but her four sons faced a long and emotional legal process without a formal estate plan.
The Lesson: A clear and legally sound estate plan is the best way to ensure your assets are handled how you want them to be, and it eases confusion and conflict for your loved ones.
Incapacity Planning: Brian Wilson
Earlier this year, after the death of his wife, Brian Wilson’s family petitioned for conservatorship because of his neurocognitive disorder. They asked that members of his management team oversee the day-to-day care and medical needs. Since his finances were already handled through a trust, they didn’t request control over them.[2]
The Lesson: If you cannot decide independently, estate planning can protect you even before you pass away. Powers of attorney and trusts can help your loved ones act on your behalf without needing court approval.
No Will: Prince
When Prince died in 2016, he left behind a $156 million estate and no will. The state was left to determine who would inherit everything. His six siblings became the heirs but struggled to decide how to divide the estate.
Three of the siblings eventually sold their shares to a music publishing company. Over proposed projects, legal battles broke out between heirs and between Prince’s estate and outside parties, including Netflix.[3]
The Lesson: If you die without a will, the state decides how your property is divided. This can create years of stress and uncertainty for your loved ones and may not reflect your desires.
Over a Decade Without Settlement: Michael Jackson
Before he died, Michael Jackson created a revocable living trust, but failed to transfer his assets into it. Due to ongoing legal battles, his estate is still not settled, and his heirs haven’t received their full inheritance.[4]
The Lesson: Trusts are only effective if you fund your assets into them by retitling or assigning ownership properly. It is essential to work with a professional who can guide you through that process.
Start Planning Today
Estate planning may feel overwhelming, but it can ease the stress for you and your loved ones in the long term. A concrete plan can make all the difference in protecting your finances, preparing for a medical emergency, or ensuring your assets go to the right people.
Our team has decades of experience on this topic. We’re ready to help you build an estate plan that fits your unique situation and long-term goals.
This information does not constitute legal or tax advice. PCIA and its associates do not provide legal or tax advice. Individuals should consult with an attorney or professional specializing in the fields of legal, tax, or accounting regarding the applicability of this information for their situations.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., Suite#150, Overland Park, KS 66211. PCIA doing business as Prime Capital Financial | Wealth | Retirement | Wellness.
[1] https://russell.legal/blog/lessons-from-aretha-franklins-estate-woes/
[2] https://trustandwill.com/learn/beach-boys-conservatorship-case
[3] https://www.kiplinger.com/slideshow/retirement/t021-s003-estate-planning-mistakes-celebrities-made/index.html
[4] https://www.kiplinger.com/slideshow/retirement/t021-s003-estate-planning-mistakes-celebrities-made/index.html
The post What You Can Learn from Celebrity Estate Planning Mistakes appeared first on Prime Capital Financial.
