CELEBRITY ESTATE PLANNING MISTAKES AND WHAT YOU CAN LEARN FROM THEM

Celebrities may be able to sing, dance, and act, but when it comes to estate planning, they often make the same mistakes that many of us do.

PRINCE ROGERS NELSON

Mistake: No Will

The April 2016 death of entertainer Prince was shocking not only because he was only 57 years old but also because he had no will. Now, a Minnesota judge is deciding how to distribute Prince's estimated $300 million estate among six siblings. Other potential heirs have surfaced too, including a federal inmate claiming to be Prince's son. Not preparing a will is a basic mistake, yet nearly 60% of Americans don’t have one.

WHITNEY HOUSTON

Mistake: Not Updating the Will

Songstress Whitney Houston had a will when she drowned in February 2012, but it was outdated. Drawn up a month before the 1993 birth of Houston's only child, daughter Bobbi Kristina Brown, the will was never revised — not even as the singer's fortune climbed to $20 million. Bobbi Kristina was 18 when her mother died, and under the will's terms, she was to receive 10 percent of the estate — $2 million — when she turned 21 and the rest later. By not updating her will, Houston failed to consider whether her daughter was mature enough to handle millions of dollars. Reynolds Law Group, PLLC suggests updating an estate plan every three to five years.

MARLON BRANDO

Mistake: Making Oral Promises

Actor Marlon Brando had an estate plan for his $100 million fortune when he died in July 2004. However, his written plan excluded certain oral promises he allegedly made to his long-term housekeeper, Angela Borlaza. She filed two lawsuits claiming she was illegally kicked out of Brando's California home. The former maid said the house was a gift to her from Brando, but he never completed the paperwork to transfer the deed. In court, she sought $627,000 — the market value of the house — plus $2 million in punitive damages. The case settled for $125,000.

MICHAEL JACKSON

Mistake: Failure to Fund a Trust

Superstar Michael Jackson's death in June 2009 sparked ongoing court battles over his estate, now worth $600 million. One of Jackson's biggest estate planning missteps was creating a trust and then failing to fund it. Without a properly funded trust, Jackson's beneficiaries have wound up in probate court multiple times, and the estate remains open and subject to court approval.

HEATH LEDGER

Mistake: Accidentally Omitting a Child

After actor Heath Ledger died in January 2008, reports surfaced that he had failed to update an old will created before his daughter was born. As a result, Ledger's entire $20 million estate went to his parents and three sisters. A will should always have language referencing any of your natural-born children, adopted or stepchildren, and any offspring you may have in the future.

Avoid These Common Mistakes

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