097: Estate Planning Lessons from the Rich and Famous

It’s hard to deny that we now live in a celebrity-centric society. At one time, programming like “Lifestyles of the Rich and Famous” seemed a novel concept. Now we’re bombarded almost daily with content chronicling the everyday activities of celebrities of all kinds — including stars with no real claim to fame other than having amassed a large following on social media.

Our fascination with the rich and famous is hard to put down. We like to believe that our favorite celebrities are like us — they walk their dogs, go shopping, hit the gym, and live much like we do. That’s probably why all that TMZ-style photo and video content centered on celebrities going on about their daily lives is such a mainstay of social media. It reinforces the notion that stars are very similar to us despite their wealth and fame.

Comforting as that may be, most of us — probably yourself included — also realize that, in some respects, celebrities are, in fact, nothing like us. After all, multi-million-dollar estates, exotic cars that cost more than many houses, entourages, and travel via private jet are luxuries that few of us get to experience.

Considering the financial resources at their disposal, you’d think that most celebrities would have a legion of financial experts at arm’s reach to not only maximize their income but also build estate plans that leave nothing to chance when it comes time to transfer all that accumulated wealth to the heirs of their choosing.

As it turns out, that’s often not the case. When it comes to estate planning, many celebrities are very much like us, either putting it off

entirely or dealing with it in a haphazard fashion. In our newest episode of Absolute Trust Talk, Kirsten Howe and associate attorney, Madison Gunn, take a closer look at some of the surprising missteps — ranging from poor planning to outright avoidance — that many members of the rich and famous have made when planning for that time when they’ll no longer be around. 

A number of these situations will probably seem pretty familiar, yet the fallout from these celebrities either taking ill-conceived actions — or no action at all — can be substantial. Huge amounts of wealth that could have otherwise been shielded end up in the government coffers via taxation, heirs battling it out in court for years (literally), and some heirs being enriched to the extent that has led them down a tragic, and sometimes even fatal, path.

It’s a bit of a departure from most of our ATC podcasts, but it still maintains a common thread. You’ll hear stories about the rich and famous that are, at times, both sobering and entertaining, and yet there’s no shortage of teachable moments included. Besides being better equipped to avoid estate planning mishaps, you’ll also walk away from this podcast with a better idea of the right steps to take for a smoother process when planning and administering your estate.

In this episode, we’re going to discuss:

How, despite wealth and access to the best financial advice, celebrities often avoid the topic of estate planning altogether The challenges that come with estates that include music rights and other intellectual property Missteps by the rich and famous that have led to the government taking huge shares of estates at the expense of potential heirs How poor planning has led to heirs being enriched to the extent that they proved unable to handle Why having the best of intentions and communicating them to others is no substitute for a properly executed will The privacy implications of a celebrity dying intestate

And more.

Because so much wealth is usually at stake, we tend to assume that the rich and famous almost always take the necessary steps to ensure their estate plans reflect their intentions and are airtight. Unfortunately, this is often not true, but as you’ll see, when celebrities either improvise with their estate plans — or take no action — the consequences can be enormous. The fallout may make for good tabloid fodder, but at the same time, it’s sobering.