INEFFECTIVE PLANNING

YIELDS UNINTENDED CONSEQUENCES

A look at the estate planning errors

of two deceased celebrities…

BRADLEY B.ANDERSON NEVADA ESTATE PLANNING ATTORNEY

Ineffective Planning Yields Unintended Consequences 2

Engaging competent legal counsel allows you to effectively plan your estate.

However, some high net worth individuals have passed away without taking the

correct steps.

Some of them are very well known to all of us, and some of them are not. In

this paper we will look at the estate planning errors of two famous deceased

celebrities.

ASSUMPTIONS

It is important not to assume you are aware of all the issues when you're

planning your estate. You should consider all possible contingencies and work

with your attorney to create an ironclad plan that can't go wrong under any

circumstances.

Marilyn Monroe Estate

Marilyn Monroe left the majority of her estate to Lee Strasberg, the famous

drama coach. He was married to his second wife Paula at the time of Marilyn's

death.

According to reports the

Strasburgs were almost like

parents to Marilyn. Paula

was eight years younger

than Lee, and as a rule,

women have longer

lifespans than men.

It would have been logical

for Marilyn to assume that

Lee would die before Paula.

Under those circumstances

Paula would wind up inheriting whatever it is that Marilyn left to Lee.

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Since Marilyn looked upon Paula as family she probably thought that this would

be an appropriate result.

As it turns out things did not unfold in this manner. Lee Strasberg lived longer

than Paula, and he wound up marrying a woman named Anna.

Lee left the Monroe estate to Anna, even though Marilyn Monroe had never met

this woman.

Anna made a fortune via licensing rights, selling the Marilyn Monroe image in a

myriad of different forms. She ultimately sold ownership of the estate for some

$20 million or more according to NPR.

It's unlikely that Marilyn would have wanted to leave her legacy in the hands of

someone that she didn't know, and it could have been prevented with more

effective planning.

Steve McNair: You're Never Too Young

Many young adults procrastinate when it comes to estate planning because they

don't expect to die any time soon. The odds may be in your favor when you are

a young adult, but there are certainly no guarantees.

Estate planning is particularly important for people who have dependent

children. Taking chances when you are single and childless is one thing, but

when you have people depending on you advance planning is a must.

In addition to the children, some younger adults assist their parents. This is

another matter to take into consideration.

With all of the above in mind let’s briefly examine the Steve McNair estate case.

Sports fans will remember McNair as a star quarterback who spent most of his

career with the Tennessee Titans.

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McNair was seeing another woman while he was married. His mistress shot and

killed him in 2009 in a murder-suicide. McNair, who was 36 years old at the time

of his death, did not have any type of

estate plan in place.

He made around $75 million in salary

over the course of his career, and he

probably made quite a bit of money via

his endorsements and business endeavors

as well. In 2009 the estate tax exclusion

was $3.5 million, and the rate was 45%.

Since he took no steps to reduce his

estate tax exposure, his wealth was

certainly subject to considerable tax

erosion. This could have been mitigated

had he planned in advance with the

benefit of legal counsel.

He also could have taken steps to arrange for assets to transfer to his family

outside of the probate process. Because he didn't do this the assets that

comprised his estate were frozen by the probate court for a considerable period

of time.

In addition, his mother also suffered. He had built her a dream home on 45

acres in Mississippi. Unfortunately for his mom, Lucille, he did not title the

property in her name. It was in his name at the time of his death, so it was part

of his probate estate that went to his wife and children.

When you draw up a last will you can select a personal representative to

administer the estate. If you don't have a will the probate court will appoint

someone to act as the administrator or personal representative.

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McNair's widow was chosen by the court to act as personal representative. She

decided charge Lucille $3000 per month in rent for the home.

Lucille couldn't pay the rent, so she had to leave the home that her son had

built for her with a portion of his NFL riches.

That's not the end of the indignities that were suffered by Lucille. She brought

her property with her when she left the residence. McNair's surviving spouse

Mechelle contended that the things that

she took did not actually belong to her.

She took legal steps to demand over

$50,000 from Lucille to pay for these

items.

Steve McNair had this home built for his

mother as a show of his gratitude.

Clearly, this is where he wanted her to

reside. He would never have approved of evicting his mother, and he could have

prevented this outcome if he had planned his estate properly.

CONCLUSION

These two cases demonstrate what can happen when you don't take the

appropriate steps to make sure that your wishes are carried out after you pass

away.

When you retain a licensed estate planning attorney and plan your estate with

the benefit of professional counsel you can be sure that no unintended

consequences arise after your passing.

While Steve McNair did in fact

have significant financial resources, his assets were frozen by the probate court because he did not have a

will, a trust, or any other estate planning documents in

place.

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About the Author

Prior to founding his own firm in 1995, Mr. Anderson served as a senior counsel for two major financial institutions and witnessed the often devastating effects of ineffective estate planning with many customers of those institutions. When he eventually decided to venture out on his own, this experience led him to focus exclusively on estate planning, providing his

clients with a full range of basic and advanced planning options. Mr. Anderson began his professional life as a teacher of mentally-challenged, visually impaired students. After four years as a special education teacher, Mr. Anderson returned to school to obtain his law degree and begin a second career. Upon finishing law school, he

went to work for a civil litigation firm, spending five years handling litigation, probate and wills work. He then moved on to Wells Fargo Credit Corporation where he served as senior counsel. In 1990 he accepted a position with the First Interstate Bank Legal Division, where he had responsibility for several divisions, including the Trust Department. In 1995, he

began his own practice as Bradley B Anderson, Attorney at Law. The firm has continued to grow into the premier estate planning law firm we see today.

Anderson, Dorn & Rader, Ltd.

Legacy and Wealth Planning Attorneys 500 Damonte Ranch Parkway, Suite 860 Reno, NV 89521 www.wealth-counselors.com

Phone: (775) 823-9455 Fax: (775) 823-9456