NAME: Audrey Hepburn
DIED: January 20, 1993
AGE: 63
CAUSE: Cancer
ESTATE BLUNDER: Leaving her sons to split the contents of her storage locker 50/50 without clear instruction.
In her handwritten Will, Audrey Hepburn left her notable possessions to her sons to be split between them on a 50/50 basis. However, her will did not stipulate which specific items were to go to each of her sons.
Although many parents when making a will trust their children to exercise common sense, it is not unusual for disputes to arise when gifts are made that are open to interpretation or require agreement to be reached.
In 2015 Mr. Ferrer began legal action against his younger half-brother, Mr. Dotti, over the division of the memorabilia, which includes the actress’ ballet pumps, blue Givenchy dress, Burberry trench coat, and an annotated Breakfast at Tiffany’s script – which is expected to sell for around $100,000. The best advice to anyone making a will is to be as clear as possible and avoid ambiguity or uncertainty.
(Source: DailyMail.com)
INSURANCE 101
Famous Estate Planning Failures
NAME: Jim Morrison
DIED: July 3, 1971
AGE: 27
CAUSE: Congestive heart failure
ESTATE BLUNDER: Having an overly simplistic will
Overly simplistic wills often fail to consider what happens when the primary beneficiary subsequently dies. Jim Morrison, lead singer of the rock group The Doors, died at age 27 with a simple two-page will.
Morrison’s will declared that he was unmarried and had no children, and he bequeathed his entire estate outright to his girlfriend, Pamela Courson, if she survived him, or if not, in equal shares to his brother and sister.
Courson inherited the estate, but she died intestate less than three years later, and the estate passed outright to her parents.
Morrison’s parents then made a claim against their son’s estate, arguing that Morrison was incompetent to make a will and that Morrison’s common-law marriage to Courson was illegitimate. Had Morrison’s parents been successful, Morrison’s estate would have passed by intestacy, and his parents would have been the beneficiaries. (Source: AmericanBar.org)
INSURANCE 101
Famous Estate Planning Failures
NAME: Philip Seymour Hoffman
DIED: February 2, 2014
AGE: 46
CAUSE: Drug overdose
ESTATE BLUNDER: Willing his $35 million estate to his girlfriend, not his children.
Philip was a talented act, but not a good estate planner. He died in 2014 and was survived by his girlfriend, Mimi, and their three children, ages 10, 7 and 5.
He did not want “trust fund kids” so he used a will prepared by his CPA to leave his $35 million estate to his girlfriend. She was to provide for their children.
The lack of planning results in his estate owing estate tax of approximately $12 million. If Philip had married Mimi, his family would have saved approximately $12 million and paid no estate tax whatsoever.
Philip could have provided for Mimi with a Personal Asset Trust, which would help protect her from divorce, lawsuits by predators, creditors and even a second estate tax imposed on Mimi when she dies.
(Source: Kiplinger)