Don’t be like Aretha; prepare a will
Absence of one can lead to battles among family
Aretha Franklin’s legacy could include teaching consumers yet another word: W-I-L-L.
Get one. Franklin – like Prince, Pablo Picasso and others before her – reportedly died without a will or a trust. And there could be legal battles ahead in probate court for family members and others because of it.
It’s shocking, especially when you consider that Franklin, who died Aug. 16 at age 76, had been battling pancreatic cancer for quite some time. And reportedly, she had $80 million in assets at the time of her death, according to People magazine, which quoted estimates from CelebrityNetWorth.com.
Celebrity news sites are all over this one.
“It’s especially surprising given that she has a special-needs son named Clarence who needs financial and other forms of support for his entire life,” according to TMZ.
How much Franklin’s estate really has to distribute to her heirs isn’t known. The real value to them will be determined in the months – and possibly years – ahead.
All that money? No will? Yep, Prince had an estimated estate of $200 million, and he died without a will, too. Two years after his death, his heirs still had not received any money.
If you die without a will, the state, the courts and the lawyers step in to handle matters. Creditors will be paid off and assets will be distributed under the law of the state where you live. The legal bills build and build in many cases – especially if there are disputes.
“The lesson for everyday family members is when you don’t have a will, it makes it more likely there’s going to be fighting,” said Danielle Mayoras, who with her husband, Andy, co-wrote a book called “Trial & Heirs: Famous Fortune Fights!”
“It makes it a lot harder on your family to go through that process.”
The Troy, Michigan, attorneys, who have a blog on celebrity estates, have written extensively about estate-planning mishaps involving Michael Jackson, Heath Ledger, Princess Diana, Marlon Brando and others.
The couple have given positive reviews to how some celebrities planned for death, too, such as Hugh Hefner, who they said “was a role model … when it came to estate planning.”
Their blog is on their website, Trialandheirs.com. They also explore estate battles in a column for Forbes.com and are filming a new TV show on celebrity legal issues, which is set to run next year.
Danielle Mayoras reviewed some key insights with me by phone Wednesday in light of the Franklin estate news:
❚ The odds go way up for court battles without a will: Even everyday fam- ilies – say where Mom or Dad leaves behind an old car, a house and maybe if you’re lucky a few hundred thousand dollars – can find something to fight about when there isn’t proper estate planning.
“Then you get the ‘ Oh, he promised me this’ or ‘she promised me that,’ ” said Mayoras.
Mayoras said she really isn’t surprised that Franklin didn’t have a will, given how so many people don’t have estate plans.
Lists go on and on when it comes to well-known people who died without wills: Jimi Hendrix, Bob Marley, Martin Luther King Jr., NFL player Steve McNair and Abraham Lincoln.
Many, of course, have been advised over and over to spell out their wishes for how their estate should be handled.
“I was after her for a number of years to do a trust,” Los Angeles attorney Don Wilson told the Detroit Free Press. He represented Franklin in entertainment matters for the past 28 years.
❚ It is important to plan what hap- pens with your money before you die: Even though you don’t want to think about death, it remains important to find a good, experienced attorney and start the estate-planning process.
Ideally, you want to take time to think out potential problems. Are you worried that your daughter-in-law will spend all your son’s money once you die? Are you fearful that a child with a drug addiction shouldn’t be left $50,000 in cash? Do you have a child with special needs that will need help?
These are the kinds of things you’d want to address in an estate plan.
Creating a trust isn’t enough. Jackson, who died at age 50 in 2009, had made a will and set up a trust for his children. But like some everyday fathers and mothers, he didn’t take the next key step – and fund the trust or re-title his assets into it. And it turned into a family mess.
It could start out costing you $500 and up to go to a lawyer for a will. You’d be looking at a few thousand dollars to establish a trust and estate plan. But again, fees and costs can be all over the map. It’s not always wise to go with the lowest-cost option.
Some people with less complicated financial situations could turn to places such as LegalZoom.com, where prices start at $69.
A startup called Fabric will even do a will online for free. See www.meetfabric.com.
Chris Mann, an attorney at Dawda Mann in Bloomfield Hills, Michigan, said using an online service, such as LegalZoom, often is better than doing nothing.
❚ When you get a will, tell your family where it is: Tell your family where your will is located. Let them know your plans. Don’t make your family hunt for all that necessary paperwork. Make sure you update beneficiaries, too, for valuable assets, such as a 401(k) plan or Individual Retirement Account. And let loved ones know about those assets.
It might be painful to discuss death, even when there is an illness. But experts say it’s far more painful to leave behind a legal mess.