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The Importance of Having a Will: Lessons from Aretha Franklin's Estate Dispute
Why Everyone Needs a Will
History has shown us examples of celebrities who have passed away without creating a will, such as Bob Marley, Prince, and Jimi Hendrix. Unfortunately, the ongoing legal dispute over Aretha Franklin's estate has highlighted the importance of having a formal estate plan, even for non-celebrities. Estate planner Richard Behrendt emphasizes that everyone should have either a will or a trust to ensure that their property goes where they want it to go. Otherwise, state laws will dictate the distribution, which may not align with your desires.
Understanding the Role and Importance of a Will
A will is a legal document that outlines your wishes regarding the distribution of your property and assets after your death. It also allows parents with minor children to nominate a legal guardian for their kids. Additionally, a will appoints an executor, responsible for ensuring that your wishes are carried out effectively. In the absence of a will, the decedent is considered "intestate," and state laws determine how their estate's property will be divided.
The Aretha Franklin Estate Dispute
Aretha Franklin, the Queen of Soul, did not have a formal, typed will. Instead, she left behind two handwritten wills—one from 2010 and another from 2014. The ongoing legal dispute between her four sons revolves around which of these documents should govern her estate. One son supports the 2010 will, while two others favor the 2014 version. Differences between the wills, such as the distribution of her main home, have led to disagreements regarding the rightful inheritors.
The Validity of Handwritten Wills
Some states, including Michigan, recognize handwritten wills, also known as "holographic" wills, if they meet specific criteria. Generally, if a more recent will is found, it takes precedence over an older one. In the case of Aretha Franklin's wills, if the 2014 version is considered valid, it would supersede the 2010 document. However, estate planner Charlie Douglas advises against relying on handwritten wills, as there are too many ways for things to go wrong. It's essential to create a formal will to avoid legal complications and disputes.
Other Considerations: Joint Tenancy and Beneficiary Designations
It's important to note that a will may be superseded in certain situations. For example, beneficiary designations on retirement accounts take precedence over the instructions in a will. Additionally, if property is owned in joint tenancy, the surviving owner automatically inherits the property, regardless of the will's content. To ensure that your assets are distributed according to your wishes, it's crucial to review how your assets are titled and make appropriate adjustments.
Choosing a Trust for Privacy and Control
Although wills are commonly used, some individuals, especially celebrities and wealthy individuals, prefer to use trusts to maintain privacy. Trusts allow you to keep the details of your estate plan private and bypass the courts. A revocable trust functions similarly to a will but offers more control and flexibility. Creating a trust can be a valuable option for those who want to protect their privacy and have more control over their assets.
The Importance of Having a Will: Lessons from Aretha Franklin's Estate Dispute
Why Everyone Needs a Will
History has shown us examples of celebrities who have passed away without creating a will, such as Bob Marley, Prince, and Jimi Hendrix. Unfortunately, the ongoing legal dispute over Aretha Franklin's estate has highlighted the importance of having a formal estate plan, even for non-celebrities.
Understanding the Role and Importance of a Will
A will is a legal document that outlines your wishes regarding the distribution of your property and assets after your death. Additionally, a will allows parents with minor children to nominate a legal guardian for their kids and appoints an executor responsible for carrying out your wishes. Without a will, state laws will dictate the distribution of your estate, which may not align with your desires.
The Aretha Franklin Estate Dispute
Aretha Franklin's estate dispute, involving two handwritten wills, raises concerns about the validity and interpretation of such documents. The ongoing legal battle between her four sons illustrates the importance of having a clear and formal will to avoid ambiguity and disputes among loved ones.
The Validity of Handwritten Wills
While some states recognize handwritten wills, the potential for errors or misinterpretation is high. Estate planners advise against relying on holographic wills, emphasizing the need for a formal and typed will to minimize legal complications and ensure your wishes are followed accurately.
Other Considerations: Joint Tenancy and Beneficiary Designations
It's crucial to review how your assets are titled and make appropriate adjustments to ensure proper distribution. Beneficiary designations on retirement accounts and joint tenancy ownership may supersede the instructions in a will, highlighting the importance of considering these factors in your estate planning.
Choosing a Trust for Privacy and Control
For those desiring privacy and more control over their assets, trusts can provide an effective solution. Trusts allow you to maintain confidentiality and bypass the courts in the distribution of your estate. Considering the benefits of trusts, individuals, including new business owners, may find value in exploring this option to protect their privacy and exercise greater control over their assets.
In conclusion, the estate dispute surrounding Aretha Franklin serves as a reminder of the importance of having a will, regardless of celebrity status. As a new business owner, it is crucial to establish an estate plan to ensure a smooth transition for your assets and minimize potential conflicts among your beneficiaries. Consulting with an estate planner or attorney can help you navigate the complexities of wills and trusts, providing peace of mind regarding the future of your business and personal affairs.
Article First Published at: https://www.cnbc.com/2023/07/11/aretha-franklins-ongoing-estate-battle-shows-importance-of-having-a-proper-will.html.svg)
