Part 1 will explain how Amy Winehouse didn't have an Estate Plan, leaving behind a $6.7 million estate.
Part
2 will describe how Whitney Houston didn't have a
Living Trust and her Will was filed publicly in probate court.
Part
3 will explain how Michael Crichton didn't update
his estate plans, leaving his wife and baby empty-handed.
Part
4 will describe how Etta James didn't have a
Durable General Power of Attorney, causing a father/son feud in court.
Part 1: Amy Winehouse Didn't Have an Estate Plan, Leaving Behind a $6.7 Million Estate
Did
you know that 66 percent of adults don't have an Estate Plan? Whether
you are wealthy or have a modest estate, proper estate planning is
critical.
When
she unexpectedly passed away at age 27 with a $6.7 million estate,
singer Amy Winehouse didn't have any kind of Estate Plan in place.
Winehouse may have wanted to pass money on to her brother, her
ex-husband, or a charity of her choosing, but no one will ever know.
Since she died without having any kind of Estate Planning, her entire
estate was passed on to her parents under the laws of London, England.
Legally,
if you die without a Will or Living Trust here in the U.S., the state
determines who will be your ultimate heirs. This distribution plan can
be found in the intestacy statute of each state. This law varies from
state to state, but typically if you die intestate, the estate will go
to spouse and children, or parents or siblings if you are single and
don't have kids. The applicable state law can be either the location of
your legal residence (for personal property), or the state in which your
assets are located (for real estate). Find out more about Wills and
other related topics.
Here
at The Law Firm of Evan H. Farr, P.C., we advise that our clients
should almost always use a Living Trust as their primary Estate Planning
tool, in order to protect assets at death from having to go through
probate. A Will allows you to direct who receives your assets (i.e.,
who are your beneficiaries) and who manages your estate (i.e., who acts
as your executor), but a Will does NOT protect your assets from going
through probate. Only a properly funded Living Trust protects your
assets from going through the "nightmare of probate."
Why is probate such a nightmare?
1)
Probate requires frustrating intrusion by the court, lawyers, and the
public at a very emotional and private time. A court may have to decide
who is a legitimate creditor, and may have to rule on distributions to
children and other beneficiaries. Your executor may have to engage
attorneys to shepherd the executor through the legal maze.
2)
All of your legal and financial affairs will become public knowledge.
The contents of your Will becomes a public record on file at the
courthouse, for everyone to view. Wills can be read by salesmen,
reporters, and anyone who is curious - especially identity thieves and
con artists who are trying to take advantage of someone who is grieving
and going through the nightmarish probate process.
In Part 2 of this series, we'll examine another "celebrity mistake" and examine more reasons why probate is such a nightmare. Learn more about the benefits of using a Living Trust for Estate Planning.
Farr Law Firm Pledge
The
goal of the Farr Law Firm is to give all of our clients not only the
best legal expertise possible, but also excellent client service. We try
very hard never to keep you waiting. We try to return all phone calls
promptly.
We
work as a team so that there is always someone available to help you
when you need it. All of the people who work in our office are committed
to this goal. They are all caring and compassionate people, and they
understand the problems that you and your family may be facing. To get
to know our team, please click here.
Visit our Blog to comment or read more great articles: http://blog.virginiaelderlaw.com/
