Recent celebrity deaths have caused sadness and nostalgia for a lot of people. If you have reflected on the hard work of late celebrities such as Prince and Robin Williams, you can learn a lot of lessons from their estate planning strategies, too. Nobody is exempt from estate planning pitfalls, and being prepared is key.
Do not put off determining the future of your property. Here are the top celebrity estate planning mistakes you can learn from and what to do instead.
1. No will
Prince passed away without a will, and it led to serious complications and infighting between beneficiaries. Whether you have a modest estate or millions of dollars, making sure your assets will be distributed properly is important. If you do not want your family going through drawn-out litigation after your death, be sure to start with a will.
2. Not updating your plan
Whether you have a will, living trust or both, it is crucial to regularly review your estate plan and update it as necessary, something Barry White never did. As your family and financial situations change, be sure to take a look at designated beneficiaries on your will. Consistent edits will ensure your estate is administered smoothly to the right people.
3. Failing to consider estate taxes
If you do not plan ahead for tax implications of your estate, you could put beneficiaries in a tough situation like Miami Dolphins' founder Joe Robbie did. Do not make a situation where your beneficiaries must sell sentimental or valuable items from your estate to afford taxes.
Estate planning can seem intimidating and even complex, but it is worth careful consideration. Whether your assets are modest or on par with celebrities, you should do what it takes to protect your assets and help your heirs. If you need advice for avoiding common estate planning mistakes, consult an estate planning lawyer.