After the sudden death of 48 year old Whitney Houston, some of the first questions asked are: How did she die? What about her family?
Some questions that come to mind right after that are: What estate did she leave behind and to whom did she leave it? Then, the informed reader asks: Will her Estate be “clobbered” by Taxes and Probate costs? Did she use a Living Trust, Will, Life Insurance Trust, or even do Estate Tax Planning?
We know she and her advisors were aware of a need for Estate Planning as she had been involved in an eight year lawsuit brought by a woman who was 40 years younger than her father, who married him before he died. Her father had done poor Estate Planning which did contribute to that lawsuit. You would hope she had learned from that lesson.
There were rumors that she was strapped financially even though she had just done a movie. Also, record and licensing sales soared after Michael Jackson died and are likely to do the same here. That could add millions to her Estate. She leaves one adult daughter as an heir.
Remember, Estate Taxes are voluntary. They can be planned around so that none or little are paid. The same is true with Probate costs.
We are yet to hear the terms of her Estate Plan, but are likely to soon. We’ll see if her Estate is “clobbered” by paying large amounts of Estate Taxes and Probate costs.
What are the lessons learned Estate Planning wise?
1. You never know when you will be “called home.”
2. Make sure you have a well qualified Estate Planning Attorney do the necessary planning to take care of you upon mental disability, protect yourself and your loved ones, and avoid Estate Taxes and Probate costs.
3. Keep that Estate Plan current as three things are always changing: the law, your relationships, and what you own.