Estate Planning Mistakes of the Rich & Famous
[2010]
The rich and famous make the same mistakes we do…only worse!!!
What Pablo Picasso, Abraham Lincoln, and Sonny Bono had in common?
Failing to enter a will...
• Howard Hughes – Famous aviator/industrialist/film producer/eccentric
 Left
a $2.5 billion estate. Howard Hughes cared a great deal about leaving
his estate to advance medical research, as he often indicated, but
unfortunately never put it in writing. Not only did his oversight cost
his estate hundreds of millions of dollars in estate taxes, but also
frustrated medical treatments or cures that may have been developed
with his intended gift.
• Elvis Presley – The King of Rock 'N' Roll
 When
Elvis passed away his estate was in the surprisingly small amount of
about $10,000,000. Because of lack of proper estate planning, his net
estate only left $2.7 million, a 73% shrinkage.
• Warren E. Burger – former Chief Justice of the United States Supreme Court
 Warren
Burger was the #1 legal professional in the land. Yet, even he – and
his lawyers – missed the move that could have netted his children an
additional fortune. Because of the lack of an estate plan, his children
were socked with hundreds of thousands of dollars in taxes and court
costs.
• Marilyn Monroe – Famous Actress
 Marilyn
Monroe took her life sadly, at age 36. In her will, she left $100,000
in trust to support her mother. With no estate plan or trust in place,
royalties and licenses that she wanted to be given to charitable causes
were never carried out. Debts and Federal Estate Taxes caused a 55%
shrinkage to her net estate.
• John Denver – Singer/Songwriter
 John
Denver’s failure to name a beneficiary resulted in loss to daughter of
millions of dollars in taxes and even more in tax-free compounding.
• Walter Cronkite – Broadcaster
 Died
at the age of 92. Cronkite subjected his family to probate court when
he could have bypassed it with a properly funded revocable living
trust. Revocable living trusts make sense for many people –
millionaires or not.
• Michael Crichton – creator of movie hits like Jurassic Park and the television series ER
 Understanding
the importance of sound estate planning to preserve peace of mind for
his family, Crichton apparently had a robust estate plan in place.
Crichton and his wife were expecting a new baby when Crichton died
unexpectedly. He failed to provide for his unborn child, leaving a
legacy of distress, uncertainty, and litigation for his family.
• Steve McNair – Super Bowl quarterback, 3-time Pro Bowl selection
 McNair
was killed at the age of 36. McNair, with nearly $20 million in his
estate, had not done any estate planning, leaving his heirs with estate
taxes and court fees consuming a large portion of his estate.
• James Brown – Soul singer and known as “The Godfather of Soul”
 James
left an estate nightmare for his heirs. He left a loose will, and a
sloppy estate plan. Hundreds of thousands of dollars was spent because
of his mistakes.
• Harry S. Truman – 33rd President of the United States
 Mr. Truman’s estate suffered a 38% shrinkage due to federal estate taxes and fees.
• John D. Rockefeller, Sr. – Founder of Standard Oil Co., Industrialist and Philanthropist
 Because
of lack of proper estate planning, Rockefeller’s nearly $27 million
estate paid over $12 million in Federal Estate Taxes and over $4
million in State Estate Tax.
• William Holden – Film Actor
 William’s
Gross Estate of over $6 millions suffered a 67% shrinkage after debts,
court fees and federal estate taxes, which may partially have been
avoided with sufficient estate planning.
• Clark Gable – Screen Star
 Without a proper estate plan in place, Clark had 39% shrinkage to his $2.8 million estate.
• Nicolas Cage – Oscar Winning Actor
 This
is the latest example of the notion that it's not what you make that
matters, but how you make do with what you have. Cage’s Las Vegas
mansion was re-cently foreclosed on and sold for nearly $5 million, as
reported by the Associated Press. Cage has said his former business
manager gave him bad advice and that allegedly led to his financial
mess. Even when you hire someone to help you with your money, you have
to do your homework. You have to check up on what the adviser is doing.
Contact our office if you have any questions about estate planning.
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