Not Updating A Plan
Whitney Houston. Ms. Houston’s estate climbed to $12 million between when her will was written in 1993 her death in 2012. Her will provided for her daughter to receive 10% of her estate when she was 21 and the rest later. Her will failed to provide for whether her daughter would be mature enough to handle millions of dollars at that age.
Barry White. When Mr. White passed in 2003 he was separated from his wife but not yet divorced. She inherited everything while his girlfriend of years and his children received nothing.
Not Finishing A Plan
James Gandolfini. Mr. Gandolfini was worth $70 million when he died. He prepared a simple will before leaving on vacation. The will provided for his wife, daughter, and two sisters. Unfortunately, he didn’t use proper tax planning and his estate paid federal and state estate taxes at a 55% rate.
Making Oral Promises
Marlon Brando. Mr. Brando had an estate plan when he passed. Unfortunately, in addition to his formally written plan, he had made oral promises to his long-term housekeeper. She filed two lawsuits claiming that his California home was a gift to her from Mr. Brando. No paperwork was completed for that transaction and a court settlement was made for $125,000.
Failure to Fund a Trust
Michael Jackson. Mr. Jackson made one of the most common mistakes. He had a trust but never funded it during his lifetime. Funding a trust means either titling assets or naming the beneficiary of assets properly to flow through the trust. Because he didn’t fund his trust his estate has been tied up in a long and costly battle in probate court.