Estate Planning Mistakes Of The Rich And Famous

Estate Planning Mistakes of the Rich and Famous

by

Rowel Manasan

Florence FloJo Griffith Joyner

Mistake: Not telling your executor where to find your original documents.

When Olympic sprinter Florence Griffith Joyner died at 38, in 1998, her husband couldn t find her original will, and failed to file it with the probate court within 30 days of her death, as required by California law. Joyner s husband and mother took disputes, including whether Joyner promised her mother could live in their house the rest of her life, to court. Joyner never filed the original will, and the judge eventually appointed a third party to administer the estate.

Your Lesson: Make sure at least two people you trust know where to find your original will. To be safe, keep two copies, and leave the original in your bank safety deposit box, or in a safe here at our offices.

Doris Duke

Mistake: Bad choice of executor.

Tobacco heiress Doris Duke, who died in 1993 with a fortune estimated at $1.3 billion, named her butler as executor and as trustee for a huge charitable foundation. After the butler s lifestyle and spending habits were called into question, he was removed from his duties by a probate judge, then reinstated by New York s highest court. A settlement agreement created a board of trustees to manage the foundation.

Your Lesson: Don t have the butler do it. Pick someone competent and trustworthy as your executor. And, of course, we can help you with that!

Princess Diana

Mistake: Relying on a letter of wishes to give away belongings.

After her tragic death in 1997, Princess Diana left a detailed will naming her sister and mother as executors. She also wrote a separate letter of wishes asking her executors, at their discretion, to divide her belongings among her sons and her 17 godchildren. But instead of getting stuff worth an estimated 100,000 pounds, each godchild got only a trinket.

Your Lesson: Don t rely on executors sense of duty; put bequests in your will or trust or in a signed, dated list.

Jimi Hendrix

Mistake: Never writing a will.

Music legend Jimi Hendrix (one of my favorites when I was younger) died at age 27 in 1970 without a will. Under state law, his dad, Al, got everything, leaving his close brother Leon with nothing. Al built Hendrix s musical legacy into an $80 million venture, but, in his own will, he cut out Leon and his family, in favor of his daughter through a later marriage.

Your Lesson: Even young rock stars aren t immortal. Sign a will or living trust document.

Ted Williams

Mistake: Conflicting directions on burial wishes.

In his will, baseball legend Ted Williams said he wished to be cremated. But his two children from a second marriage produced a grease-stained note saying he wished to be put in biostasis after his death, and they froze his body after his death in 2002. It s become a bit of a macabre joke in the sports community, unfortunately. His eldest daughter fought to have his body unfrozen and cremated, but gave up the fight when she ran out of money.

Your Lesson: If you change your mind about your burial wishes, change your will by adding a codicil, or writing a new one.

I hope these stories help you avoid becoming a celebrity cautionary tale! To your family s financial and emotional peace

Rowel Manasan is a friendly, “jargon free” estate planning attorney in the Los Angeles area. He offers estate planning services in the Los Angeles area and beyond, as well as a variety of legal services for regular families. For a Free Report on estate planning, visit: http://lafamilyestatelaw.com.

http://lafamilyestatelaw.com/

Article Source:

ArticleRich.com