Deceased Celebrities Provide Important Estate Planning Reminders

The estate planning decisions and mistakes of the rich and famous can provide helpful illustrations and reminders for estate planning. Here are some estate planning lessons illustrated by recent celebrity deaths:

• Robin Williams: The recent death of Robin Williams in August was an example of how the use of a trust can maintain privacy for a family during the grieving period. However, the terms of a reportedly outdated trust were made public after a co-trustee entered the document into court records to have a new trustee appointed. If a method for appointing a new trustee was established through the trust, then a court order would have been unnecessary and the trust terms would not have become public
• Casey Kasem: The high-profile family drama that occurred at the end of Casey Kasem’s life highlights the importance of in-depth conversations with family members about end-of-life wishes and nurturing healthy family relationships, especially when multiple marriages complicate the family relationship.
• Phillip Seymour Hoffman: The choice to use a will rather than trusts by Phillip Seymour Hoffman stirred discussion of the fear of wealthy individuals that their children will be spoiled if they have trusts to rely on for income. However, Hoffman’s decision resulted in significant tax consequences, which brings to light the importance that tax regulations play in estate planning.
• Michael Crichton: The questions over whether Michael Crichton intentionally disinherited his youngest son provides a remainder of the importance of keeping wills and other estate planning documents updated when new life events occur.

See Thomas Fross & Robert Fross, Lessons Celebrities Can Teach Retirees About Estate Planning, Forbes, Sept. 16, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.