It has all the elements of a juicy soap opera script. A man has nine children from eight marriages. He is separated from the eighth wife because her son stole all of his money. After being worth millions at one point in his life, his estate is worth $18,000 at his death due to mismanagement of his financial affairs. And his estranged wife and her children are fighting over where the man will be buried.
Unfortunately, these are not excerpts from a Hollywood screenplay, but the real story of Hollywood legend Mickey Rooney, who passed away earlier this year. With a career that lasted for more than 80 years, Rooney was the highest-paid actor in Hollywood at the peak of his career in the 1930s and 1940s. So how did Rooney lose most of his assets?
As is too often the case throughout the country, including in Minnesota, an unscrupulous family member allegedly took millions from Rooney’s estate for his own use. Rooney sued his stepson and received an order for a settlement of $2.86 million in October, only a few months before his death. But Rooney’s estate may never be able to collect the money because the stepson now says that he has no money.
But even though Rooney didn’t live to see the money returned to his estate, he didn’t take the exploitation lying down. Rooney testified before Congress about his circumstances and made a plea to lawmakers for better asset protection for seniors who may be subject to abuse and exploitation by family members and other unscrupulous predators.
In most families, congressional intervention is not necessary. An experienced estate planning attorney who understands the family dynamics that evolve throughout the stages of estate planning can put safeguards in place at the beginning of the process. If necessary, guardianships and conservatorships can be set up to protect assets of the estate.
As significant events happen within the family, such as marriages, divorces, births and deaths, an attorney who is familiar with the family can help make the appropriate changes. In the best case scenario, family members are trustworthy and will carry out your wishes. But when the worst happens, having legal protection from the outset can prevent a heartbreaking outcome like this one.
Source: Forbes, “Mickey Rooney’s Estate Finds Peace, But Will It Last?” Danielle and Andy Mayoras, April 11, 2014