Minnesota residents are likely familiar with the publicized disputes that sometimes develop between heirs after a wealthy celebrity has passed away. These legal battles are often the result of poor or nonexistent planning on the part of the deceased individual, but this kind of conflict can occur even when a comprehensive estate plan is in place.
When the actor and comedian Robin Williams passed away in August 2014, he left behind a thorough estate plan that included an updated will, life insurance and trust agreements. While these documents made clear how the entertainer wanted his most valuable assets to be distributed, his prudent planning was unable to prevent a dispute that has developed between his heirs. The actor’s surviving spouse is now embroiled in a battle with his three children over a number of personal items including collections of fossils, graphic novels and action figures.
Estate plans are often very clear when it comes to significant assets such as real property and stock portfolios, but items considered less valuable are frequently overlooked. However, these items often have great sentimental value, and bitter disputes can develop among heirs who consider them a reminder of a beloved relative. Such conflicts can become even more thorny as these personal mementos are sometimes difficult to divide between family members.
An effective estate plan avoids probate, minimizes estate tax exposure and prevents conflict, but it can be a challenge to anticipate all possible family disagreements. An experienced estate planning attorney could explain the importance of addressing assets with a limited financial but high sentimental value. An attorney may also be able to offer strategies which allow such assets to be distributed in a way that avoids potential legal disputes by making clear the intentions of the testator in fair manner.
Source: Time Magazine, “3 Things We Can Learn From Robin Williams’ Estate Battle,” Kerri Anne Renzulli, Feb. 4, 2015