01/18/2010 5:00 am
Culture
The 6 Most Controversial Celebrity Wills: Michael Jackson, Leona Helmsley, Princess Diana and More
Who got the money? Who had the biggest family feuds? The mistakes that were made -- and what we can learn from them. Two legal experts in estate planning and the authors of Trial & Heirs have the scoop.
© AP/Getty Images/AP
Editor’s Note: Legacy Expert Attorneys Danielle B. Mayoras and Andrew W. Mayoras are the authors of Trial & Heirs: Famous Fortune Fights!, recently published by Wise Circle Books. The husband and wife team are vocal advocates for protecting families through proper estate planning. They educate both families and professionals through speaking engagements, print and broadcast media throughout the country. Click here to learn more about their work.
If the recent and sudden death of Michael Jackson taught us something – other than the side effects of too much prescription medication – it’s the importance of a will or trust. Wills and trusts are taboo topics. We’re usually far more inclined to talk about Botox injections or mammograms than how we plan to divide our assets. But (and sorry for speaking so morbidly) once you’re dead, it’ll be far too late to finally address it. That’s why regardless of your age and health (Jackson was 50 and about to go on tour), it’s important to have a proper will — not just for your peace of mind, but for your family’s peace of mind too.
In addition to the King of Pop’s highly publicized estate battles, here’s a glimpse at more late celebrities, who cast a spotlight on the importance of pre-mortem planning. From Leona Helmsley (leaving $12 million to her dog) to former Senator Edward Kennedy (having a confidant as his administrator), here’s a look at how these celebrities divvied up their estates – plus the mistakes they made that you should want to avoid.
1. One of the more recent (and brutal) family fortune battles was started by billionaire Revlon Chairman Ronald Perelman. Who incurred Perelman’s wrath? Besides his ex-wife Ellen Barkin, his infirm, paralyzed and elderly ex-father-in-law, Robert Cohen. Perelman claimed Cohen had promised half his extensive fortune to Claudia Cohen, Perelman’s other ex-wife, who had passed away and whose estate Perelman controls. Despite clear instructions in Claudia’s will to preserve the relationship between their daughter and the Cohen family, Perelman launched a series of vicious lawsuits that pitted them against each other. Perelman has lost on every claim, but vows to appeal in spite of the millions in legal fees he has already spent from Claudia’s estate.
*Tip: The only reason Perelman could cause so much trouble was because Claudia Cohen named him as executor of her estate. Choose wisely when naming your executor or trustee or your family may literally pay the price! (Photo © Getty Images/Ron Perelman with ex-wife Ellen Barkin)
2. Sen. Edward (Ted) Kennedy’s will provided the world a peek behind the curtain of the famed Kennedy family. It revealed that he created a living trust and directed that all of his assets pass into his trust. Who did he pick to administer his estate? Instead of choosing his second wife or any of his children, he chose a trusted family friend and confidant, Paul G. Kirk Jr. This is a classic second-marriage situation. Kennedy may have chosen Kirk because he wanted someone outside of the family to administrator the estate to avoid family friction.
*Tip: In second marriages or situations where there is likely to be family conflict, choosing a family friend or trusted adviser makes good sense. Proper estate planning involves taking precautions ahead of time to avoid a family fight down the road. (Photo © AP)
3. While there was little he could do to surprise anyone given his past eccentricities, when Michael Jackson died suddenly, it caught the world off guard. The good news is that Jackson had a trust, the Michael Jackson Family Trust. A trust keeps affairs private and outside of the probate court — at least 
when it’s used properly. In Jackson’s case, however, he didn’t transfer his assets into the trust and as a result, his estate went through the very public court process. The general public learned about all of the fighting going on in Jackson’s estate as well as financial information, such as his mother’s monthly grooming expenses of $1,000 and his family’s monthly allowance of $86,000.
*Tip: A trust, unlike a will, can avoid the probate court process when used properly. By not transferring assets into your trust, however, you undermine some of the key benefits of a trust — privacy, avoiding probate court and decreasing the chances of a family fight. (Photo © Getty Images)
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One of the "curiosities" of Leona Helmsley’s will was her directive that income from the trust that received the remainder of the residual estate after distributions was to be used to benefit animal causes. The courts apparently "reinterpreted" and only part of it will be and the trustees will determine how much. So even "distinctly clear" directives apparently can be changed by a court if the directive is challenged. Her will was not declared invalid. She was not declared incompetent. The court merely "reinterpreted" her directives.
And not all disinherited children do so well as her two grandchildren. In most cases, once disinherited, always disinherited. Most disinherit their children, and grandchildren, in a moment of anger. And some may forget they did so. I suspect Leona Helmsley didn’t forget she did so.
Thank you for these important tips! This information is so vital but you don’t really understand how imperative it is to do your own planning until something goes wrong.
And who leaves $12 million to their pet!?
Its good to know that there are attorney’s out there (who know what they’re talking about) who truly care about helping people avoid the mess of probate court that celebrity’s cant seem to keep themselves out of!
I do believe this is a very interesting and necessary topic…I say this not from a legal point of view, but as a retired individual who worked in the administration aspectof long-term care for more than ten years. It was truly sad to see how many family members did not have a clue as to their loved ones assets let alone how to go about managing them when the were deceased. Many would tell me that their parents NEVER spoke to them of such matters…so we started promoting a campaign in our health system to assist in such sensitive topics saying: it was time to have Courageous Conversations. My husband and I have followed suit with our daughters…the more you talk about these matters…the easier it gets…no matter what your total worth is, it is best to have these matters spelled out properly as described in Trials and Heirs.
By kta on 1/18/2010 3:17 pm
It is important for everyone to have a will, to make sure your possessions go to who you want to inherit them. Also, to have funeral arangements prepared ahead.
My husband and I have done this and the peace of mind is wonderful.
I have tried to figure out what my Mom wants done when she dies. She has told me bits and pieces. I hope my sister knows the rest. Last I heard she left my sister as executor which does not even bother me since we see eye to eye on what to do with her property.
One fly in the ointment is her husband who with his addictions might die before her and he will not be an issue. We do not want to take care of him at all. Luckily he has a sister and niece even though they are both selfish, he would be their problem if he outlives my mother.
I have discussed myself with my sister who has told her daughters that they will need to take care of me if I am unable to do so. So far even though I am on disability I have been able to pay my own way without help. I admit that I have a really old will and have no idea where my advance directive is at. I had a copy with my doctor but when I left the state for 2 1/2 years my chart went into storage. My mom has a copy of my old will. But I need to stop procrastinating and take care of it.
Unfortunately, an advance directive can be ignored if not available at the time it is required for making determinations. If it is lying in a drawer where no one is aware of, it will be of little consequence. I simply made all of my banking assets, along with my investments made out to Transfer on Death to my 2 children. My grandchildren will receive portions of my life insurance and a portion of investments set aside for them. I am not rich so there should be no tax problem as my lawyer has informed me. As for my house my children know to sell it and divide the money between them. If they fight over it, it will be the first time. They are usually more tolerant and loving toward each other than they ever have been to me.
Actually, I hope all my assets are gone on the same day I die.