Love Means Having an Estate Plan

Financial Advisor UtahPresented by Mark K. Lund, Utah Financial Advisor

Shortly after Aretha Franklin died, it was revealed that she had not left a formal will. At the time of her death the 18-Grammy-winning Queen of Soul had an estimated worth of $80 million and a catalog of intellectual property which was sure to continue generating royalties.

Yet the only documents pertaining to her estate that Franklin left behind were two handwritten wills. One from 2010 was notarized. But the one that supposedly superseded it in 2014 had no signature, no recorded witness, and was found stuffed in the cushions of her couch.1

It would seem inconceivable that this gifted woman, who dealt regularly with entertainment lawyers to handle her contracts, would not have sat down with an estate attorney to draw up even a simple will.

According to Randy Fox, an advisor who specializes in estate planning, the reason for the lack of detailed planning is not that mysterious. Franklin was, by all accounts, very guarded about her personal life. Her family was not picture-perfect. Creating a trust to pass along her estate according to her wishes would have required her to divulge sensitive family details to a financial professional.

So, she did what many wealthy people do and put it off.

Ironically, says Fox, by not taking care of her estate ahead of time Franklin paved the way for these personal details to be made very public. She caused her children to endure a long and expensive legal process. And even worse, set them at odds with each other.

Sadly, Franklin is just one of many famous people to die without a proper will. The list includes Howard Huges, Pablo Picasso, Prince, and even Abraham Lincoln (one of America’s most famous lawyers!).

If you die without a valid will—most states do not recognize handwritten documents—you will not only subject your heirs to the drawn-out frustration of probate, but you could increase the likelihood of damaging their relationships with each other.

Talk with your trusted financial advisor about how you would like your estate divided when you pass on. They already know your financial and family details and so are ideally positioned to help you think through what will be most feasible and fitting. To create the necessary legal documents, such as a will or trust, he or she can refer you to a qualified attorney for appropriate legal advice.

Drawing up the documents for an estate plan is not free. But whatever you spend will be more than worth it when your assets are passed on without undue delay or expense.

You would never intentionally leave a physical mess for your loved ones to clean up. Don’t leave them a financial mess to sort through. Put a note on your calendar to talk with your advisor about this before year end.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020

Sources:
1. http://go.pardot.com/e/91522/-aretha-franklin-s-estate-woes/941ncv/2113412878/h/g2KtnHnplRBvwChVNC2HXxcFuGISNV_6v9rnZbBwKqA

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