More Celebrity Estate Planning Mistakes
Many enjoy reading celebrity estate planning mistakes because they have a hard time believing people with so much money and so many resources available to them can make such mistakes. But their mistakes can be simple, practical ones. We should be aware of these and learn from them. In this article, we will go over some more recent celebrity estate planning mistakes and what we can learn from them.
Avicii (Tim Berling)
Died: April 20, 2018
Estate Worth: $50 Million
Avicii was only 28 when he took his life. He passed without any type of estate plan in place. Since he was a Swedish citizen, his estate will pass according to Sweden’s probate laws. Under these laws, his entire estate will pass to his parents. Everything in Sweden will go to them tax-free. The problems arise due to the fact that he had substantial property in the United States. Because he was not a US Citizen these assets are subject to a hefty estate tax. If he had a proper plan in place, it could have helped to reduce or eliminate the estate tax.
If he had an estate plan, he could also have better outlined his wishes and maybe provided funds for siblings or other people he cared about instead of only his parents.
XXXTentacion (Jahseh Dwayne Ricardo Onfroy)
Died: June 18, 2018
Estate Worth: $10 Million
Though he was very young when he was killed, he died with a will in place. In his will, he gifted his entire estate to his mother and siblings. However, at the time of his death, his girlfriend was pregnant with his child. His will did not provide for any children. To make sure his child is cared for, additional court dates and paperwork will be required.
We see that it is important to quickly make updates to important documents when you have life changes. Delaying so could cause large issues.
Nipsey Hussle (Ermias Asghedom)
Died: March 21, 2019
Estate Worth: $2 Million
Nipsey Hussle was killed before he put any type of estate plan in place. Due to California’s laws of intestacy, his two minor children will inherit his estate. The problem that arises, in this case, is who will manage the funds for the children since they are minors. There have already been court hearings to disqualify one of the children’s mothers from doing so due to irresponsible behavior.
In complicated family situations like this one, it is important to plan. This way you can appoint a qualified third party to manage the funds in the best interest of the children.
Mac Miller (Malcolm McCormick)
Died: September 7, 2018
Estate Worth: $9 Million
Despite all of the celebrity estate planning mistakes, there are many that plan correctly. Mac Miller is one of these examples. He executed a will and trust back in 2013. He lists his parents as his trustees. We do not know much more than that because of his proper planning. Trusts help to keep your estate plan out of the public eye and avoid court interference.
Avoid Your Own Estate Planning Mistakes
Even though you may not be a celebrity with a large estate, you can still be susceptible to those estate planning mistakes. To avoid these mistakes and others, meet with a qualified estate planner who can help you to get a plan in place.
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