The unique financial situation that many wealthy actors and musicians face often requires sophisticated advanced planning strategies. Because of the media spotlight a wealthy celebrities spending habits can become public knowledge. Celebrities often derive their wealth from many different sources that can include copyrights, trademarks, interests in certain productions, and royalties. Heirs of celebrities can face many problems if the decedent did not plan properly. Captive insurance companies can be a useful way to address certain risks with the wealth celebrities generate. There are many ways a celebrity can structure the terms of their insurance plan in order to obtain certain tax benefits. It is important for celebrities to work with a high caliber estate planner to develop a plan that fits with their individual needs and circumstances.
See Russ Alan Prince, Ultra-Wealthy Entertainers Need Specialized Estate And Asset Protection Planning, Forbes, September 9, 2015.
