THE RICH, THE FAMOUS, THE UNPLANNED ESTATES

We’d like to think that when it comes to dying, because it’s an inevitable fact and we know it’s coming, that planning for it should be easy. But when death is sudden, often times even the people we think would be most prepared for their parting end up being the ones without a plan.

This is especially true for estate planning, and as history has shown us, sometimes not planning for the inevitable can make serious problems when you’re gone. Take these notable singers for example:

When Sonny Bono suddenly passed away, his third wife was left to manage an estate with no will, no trust, and no direction. It wasn’t until she had secured permission from a probate judge that she was able to exercise authority over the estimated $1.7 million estate.

Singer James Brown had the opposite problem when he passed away. He had a will and wishes he wanted carried out, but because he had failed to update his beneficiaries to include a special trust to benefit poor and needy children, and because he hadn’t discussed this with any of his surviving family members, his money ended up going to legal teams instead.

Although a majority of our readers may not be celebrities, it’s important to remember that it’s not just the rich and famous that should be getting their estate in order before they pass. Legal disputes can happen to anyone, no matter how large or small their estate may be. It may be as simple as who gets their grandmother’s favorite porcelain doll to as complicated as millions of dollars in assets; either way, it’s a headache you can save your family if you remember to plan ahead.

Source: Wealth Management, “Lessons of the Rich and Famous … in Death,” Jim Moniz, Dec. 24, 2012