In true Halloween fashion, we have some horror stories to tell. These stories reveal how celebrities failed to organize their estate plans to protect their assets and their loved ones.
39 Years of Probate
Marilyn Monroe died with a valid will and all of her assets sluggishly moved through probate court for 39 years. The IRS took half of her estate in estate taxes. The remaining assets went to a friend who died after Marilyn but before the probate was concluded so those assets ended up with her friend’s widow, whom she had never even met. This stranger went on to make almost $40 million dollars from Marilyn’s estate.
From 10 Million to 1 Million
After the IRS took 73% of Elvis Presley’s $10 million estate, the unscrupulous personal representative he chose to handle his estate, then squandered $2 million. When it was all said and done, Elvis’ beneficiaries only received $1 million.
Handwritten Wills Everywhere
When Aretha Franklin died, the probate court was told to proceed with intestate succession because no valid will could be located. Then as her children were cleaning out her home, they discovered several handwritten wills. All of the terms were different and contradictory. The litigation of these handwritten wills became so intense that the executor resigned.
Headlines Read “The Most Complicated Probate in Minnesota History”
The singer formerly known as Prince died without a will or trust. His collection of recordings and written music is so vast that it is still being inventoried. Until the inventory is complete, there is no way to know exactly now much his estate is worth or the taxes that will be owed. His heirs are spending countless dollars on legal fees while waiting for their future inheritance.
A Gypped Painter
Bob Ross was known for his artwork and soothing television shows, but he kept his distance from the actual business side of his enterprise. This became a terrible mistake when his business partners gradually obtained more and more ownership. In the end, his son ended up inheriting very little from his famous artist of a father.
What We Can Learn from these Celebrity Estate Planning Horror Stories:
1. Plan Ahead. Take the time to meet with an experienced estate planning attorney and create the right documents.
2. Business owners need a business succession plan that aligns with their personal estate plan.
3. Protect intellectual property.
4. Review and revise your estate planning documents and beneficiary designations periodically.
For more information, please contact the estate planning attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599, emailing us at office@stoufferlegal.com, or register for an upcoming free webinar using the link below:
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