Inevitably whenever a celebrity passes away, we routinely hear about court battles and estate controversy in the weeks, months and sometimes years to come.
These estates are not very different than ours and we should learn from their mistakes. If we look at the complications, issues, controversies and contentions which transpire after a celebrity’s death, we can better prepare and avoid similar pitfalls within our own families.
Let’s look at the media attention the estates of Dale Earnhardt, Sr. and Anna Nicole Smith are currently receiving to see what lessons we can learn.
Dale Earnhardt, Sr. passed away in 2001 with a blended family. He left control of his multi-million dollar company to his wife. His company employed his son Dale Earnhardt, Jr. who is now at odds with his step-mother over how the company is being run and controlled.
Blended families may require families to discuss and plan for many unique estate and business succession issues. For example, it’s unclear whether Dale Earnhardt, Sr. clearly articulated the succession of his business prior to his passing. What is clear is that whatever planning was or was not done has resulted in his wife, the step-mother of Dale Earnhardt, Jr., alienating his son to the point that he may leave his father’s company to go elsewhere on the NASCAR circuit. I would venture to guess this is not what Dale Earnhardt, Sr. envisioned happening to his son, the family business, and his wife.
What we can learn is that we must discuss openly with all members of our family, especially in blended family situations, our vision for a family owned business. Then we must properly plan for the succession, management, control and ownership of that family business.
Anna Nicole Smith passed away as a single mom, with two children, one which recently passed away himself and the other a new baby whose paternity is uncertain. These issues and others have been discussed in the media during the last few weeks. Who is the father of her baby? Who will inherit her estate? Who will control her estate? Who has the authorization to deal with her final arrangements? Unfortunately, she passed away relatively young with many unresolved issues that proper family planning could have answered.
What we should learn is to update our estate plan when important life events happen (death of a child, the birth of a child, etc.) to avoid the controversy that has surrounded Anna Nicole Smith. We also learn that we are never too young to do even simple estate/family planning properly documenting the important roles we wish others to play for us in the care of our minor children and the assets we leave behind. Additionally, it’s important to properly arrange what will happen to our remains through proper memorial planning.
If you have any questions regarding family based estate or business succession planning, please do not hesitate to call Rowley Chapman Barney & Buntrock, Ltd. (480) 833-1113 and ask for Ken Barney.
