Celebrities often make mistakes with their estate plans even though they usually have the money to get the best advice.
Here are a few lessons recent celebrity deaths can teach us about estate planning, according to an article in Forbes.
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1) Think carefully about who you appoint to manage your trust. Robin Williams had created irrevocable trusts to provide for his three children and one reason was probably to protect their privacy. But the trust documents were made public after one of the original trustees passed away and the co-trustee needed a court to name a new one. Williams could have planned better.
2) Plan for second marriages. DJ Casey Kasem’s final days were marred by fighting between his second wife and his adult children. His wife challenged his health care directives and his daughter’s status as health agent for him. The lesson is that communication is key. Do your best to foster good relations between family members.
3) Don’t give the IRS your money. Phillip Seymour Hoffman didn’t want his kids to become “trust fund kids” so he made a straight bequest of his estate to their mother. But since he did not create a trust or trusts, she is going to pay enormous taxes.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
