The estate planning process is more than meeting with an attorney and receiving several pages of paper in exchange for hundreds, if not thousands, of dollars. A last will and testament, power of attorney, and advance healthcare directive are often the building blocks of a fundamental estate plan. The use of trusts may provide additional benefits, such as privacy from public review and avoidance of the probate process. However, each person has their own assets, supportive or complex personal and family relationships, and view on legacy planning, which will likely require transparent personal and professional discussions to result in tailored plans.
Estate planning mistakes can be costly in terms of time (i.e., delays in the distribution of assets to heirs) and money (i.e., higher legal fees incurred, assets subject to unnecessary taxes, etc.). The more time and money it takes to move through the probate process (i.e., validating the will before the probate judge and following its dispositive provisions), the longer the heirs have to wait to begin enjoying the assets intended for them. Similarly, not taking the time to discover assets that provide for their transfer using beneficiary designations, such as retirement plans and life insurance death proceeds, can unnecessarily force such assets into the probate process, increasing the fees and time required to receive them.
No Will for Prince’s $156+ Million Estate
It is reported that Prince did not have an estate plan to help direct the distribution of his assets valued at over $150 million to heirs. Having to fall back on state intestacy laws, a Minnesota judge was tasked with distributing the estate to Prince’s six heirs (one sister and five half-siblings). Furthermore, a six-year legal battle ensued among the interested parties as to their share of various assets, increasing the time and costs required to pass the assets to the heirs.
FloJo’s No-Show Will
Florence Griffith-Joyner, the Olympic sprinter known as FloJo, is believed to have had a will but her family couldn’t locate the document at the time of her passing in 1998. This proved to be a costly error due to the legal battle that arose between FloJo’s husband and her mother as to the use of a condo.
Estate planning requires thoughtful preparation and personalized strategies to protect your legacy and ensure your wishes are honored. With potential delays, excessive legal fees, and other complications all possibilities, a comprehensive understanding and regular reviews of your estate plan are essential. Brown Financial Advisory is committed to providing a biennial estate planning review during the True Planning Cycle (TPC). Contact us to learn how our continuous, repeatable process guides you toward complete financial solutions.
Sources:
1. Source: Six Estate Planning Mistakes Prince and Other Celebrities Made, Kaitlin Pitsker, Kiplinger, updated 9/20/24. See https://www.kiplinger.com/slideshow/retirement/t021-s003-estate-planning-mistakes-celebrities-made/index.html