Estate planning celebrity style!

July 3, 9:25 AMLA Personal Financial Planning ExaminerRenee Cabourne

Previous Next

Comment Print Email RSS Subscribe

Subscribe

Get alerts when there is a new article from the LA Personal Financial Planning Examiner. Read Examiner.com's terms of use.

Email Address   Include other special offers from Examiner.com Terms of Use

AP Photo/Entertainment Weekly

With the passing of so many celebrities recently, Michael Jackson, Farrah Fawcett, David Carradine, and Karl Malden, there's been much more talk about proper estate planning or the lack of it. How does one take care of their estate when they’re a celebrity? How are they able to keep everything private? The answer is simple... estate planning. Some of the celebrities who passed away without proper estate planning were Heath Ledger, Jerry Garcia, Anna Nicole Smith, and Elvis, to name merely a few. Apparently Mr. Jackson did some planning, but didn’t update his documents in over seven (7) years. Hmmm. You think that served him and his surviving children? And what about poor Brittany? Remember the commotion when she was declared incompetent and hauled away in an ambulance? Sure the paparazzi made the event a total spectacle. But Brittany’s lack of personal planning created the real nightmare during a real low point in her young life that affected her infant sons, her career, and everything in between.

When celebrities neglect this step, disaster strikes and we all get to witness the train wreck. When we screw up and omit this step, no one sees it except those directly involved. As a financial advisor, I want to ask you, “What have you done to protect your family and estate?” Many of you are probably thinking, (lol), “I don't have anything to plan for. I don't have an estate. What do I have to protect? And why would I need estate planning celebrity style?"

Well, to respond to your thoughts there, you may or may not have something to plan for. However, the size of your estate doesn’t excuse you from executing basic estate planning. It is this plan that makes sure your family and financial goals are met after you die. Now I should disclose right here that I am not an attorney, so this should not be considered legal advice. But, it is general information that’s required in order for you to retain your own estate planning attorney and take care of this. So if you own a home, (and it doesn’t matter if you have a mortgage or not), insurance policies naming others as beneficiaries, and other assets, chances are you need some estate planning. If you have children, you definitely need estate planning. If you own a business, you certainly need to speak to your attorney about it.

And if you’re not thinking along those lines, but have done estate planning in the past, now is a good time to dust off that binder, refresh your knowledge of facts, and review your personal documents. You may find you need an amendment or another document that was either overlooked or now needed due to changing circumstances.

There are several documents that can make up one's personal estate planning. I will list the main elements here in this article and then explain each one in subsequent articles. (Click the link to go to the articles.) Here we go:

• Revocable living trust (http://budurl.com/larv)
• Revocable living trust amendment
• Certification of revocable living trust
• Community property agreement
• Last will and testament--Pour over will
• Financial durable power of attorney
• Healthcare durable power of attorney
• Living will or Directive to physicians
• Letter of direction for distribution of personal property
• Information for survivors
• Planning for catastrophic illness or incompetency
• What to do when someone dies
• Working copy of RLT

To properly protect yourself and family from probate fees, creditors, and predators, you will need some, if not the majority, of those documents. Again, I will explain what each document is and why you need it throughout the series.

Here is my disclosure one more time …I am not an attorney, so you’ll want to retain one to help you take care of you and your family. By gaining insightful and useful information, you will better understand why this type of planning is essential and how to go about getting just what you need. I look forward to this series of articles and hope you do too.

© 2009 Start Smart Advisor ™, Inc.

For more info: Here’s an interesting article on Michael Jackson’s estate of affairs since his untimely death: http://budurl.com/waq4. Here’s a link to a celebrity Q&A about lessons they’ve learned—make sure you check out all six: http://budurl.com/w9wt.