Estate Planning Mistakes of The Rich and Famous

It doesn’t matter who you are or the size of your estate – if you have any kind of assets, and a spouse, children or favorite charity, you NEED to create an estate plan and update it OFTEN. Be sure to protect your estate and heirs from overpaying any kind of taxes. In the meantime, be sure you take every deduction available to you – more deductions mean more money for you and less money going to the IRS. While you must pay your taxes, you don’t need to pay them a penny more than you legally owe. And if you’re filing your return later than usually this year, exercise patience. Even though the IRS is running a bit behind, they eventually collects what’s “Theirs” – and that’s spelled, “t-h-e-I-R-S”?

And now for Matt’s weekly tip, tool or technique…
Let’s now learn from the estate planning mistakes of the rich and famous. In celebration of Valentine’s Day, we’re going to cover the 4 C’s that your spouse or significant other will really appreciate. No, we’re not talking about diamonds – we’re talking about the four C’s to ensuring your financial wishers are honored.

Child actor Gary Coleman passed away in 2009, after a divorce with his ex-wife Shannon Price. One Will named a friend as the beneficiary of his estate, and a handwritten addendum named Shannon Price as the beneficiary, however the couple had divorced since it was written. While the courts were deciding which Will was valid, two more estate planning documents surfaced that further complicated the estate and extended the probate process. The 1st C: Be sure you have only one COMPLETE estate plan that details who is to receive your assets, how much they are to receive and when they are to receive them.
Actor Dennis Hopper filed for a divorce from his fifth wife in January of 2010, a process that was underway, but not finalized, when he passed away in May. In his Will he stated that she was NOT to receive any inheritance if they were divorced or no longer living together at the time of his death. However, the language was not very clear. They both lived on the same property when he passed away, just not in the same house. His ex-wife continues to fight Dennis’ children for what she considers to be her fair share of the estate. The 2nd C: Be sure you are very CLEAR in how you word your final wishes, and whether you choose to include or EXCLUDE a person from your will.