Estate planning is a crucial aspect of managing one’s financial legacy and ensuring that wishes are carried out after passing. The recent high-profile case of Aretha Franklin, “Queen of Soul,” has shed light on the importance of meticulous estate planning. Despite her immense success and influence, Franklin’s estate planning issues highlight common pitfalls that can be avoided with careful planning. Millionaire or not, we can all learn from her mistakes and learn how to prepare our own estate plans better.
Aretha Franklin passed away in August 2018, leaving behind four sons and grandchildren. The estate was estimated to be valued at around 80 million dollars. Because Aretha did not have formal planning, there was a significant amount of taxes paid before her family received an inheritance. In Massachusetts, estates of 2 million dollars require payment of a hefty estate tax. These taxes can be greatly reduced and sometimes eliminated with careful planning.
When Aretha passed away, in 2018, it took almost a year for her family to find two handwritten Wills in her home. Not every state recognizes handwritten wills, Massachusetts does so long as they meet certain requirements. Aretha’s children were embroiled in a court battle for five years. One will, written in 2010, was found in a locked drawer and another, written in 2014, was found in between her couch cushions. The two Wills differed greatly in what each child and grandchild was going to inherit. Aretha was known for being a private person. Despite her fame and public presence, she kept details of her personal life away from the spotlight, yet her legacy included her family in the public eye litigating over her estate.
Ensure your wishes are clearly articulated and that you can avoid court intervention while ensuring your wishes are carried out. Careful planning will also help minimize estate taxes and other expenses, preserving more of your wealth for your heirs.
A proper estate plan will help your loved ones avoid the lengthy and costly probate process, reduce or eliminate estate taxes, ensure your wishes are carried out without court involvement, and address your long-term care wishes. It allows you to place trusted individuals who can make financial and healthcare decisions on your behalf if you become incapacitated.
Aretha Franklin’s estate planning issues serve as a powerful reminder of the importance of meticulous and proactive estate planning. By learning from her experience, we can better prepare our own estate plans, ensuring that our wishes are honored and our legacy is preserved.
At DeMoura | Smith, we help you plan for what is closest to your heart, your health, your family and your legacy. We will help you prepare a comprehensive, customized, flexible plan that can support you and your loved ones to death and beyond.
