Aretha Franklin didn’t have an estate plan – why you should avoid making the same mistake

Last week, the country mourned the passing of American legend Aretha Franklin – who succumbed to a long battle with pancreatic cancer at the age of 76. Recently, it was revealed that Franklin died without a will or trust, when her family members opened probate proceedings in a Michigan court.  Franklin’s failure to prepare a will or trust came as a surprise to many, given the fact that she reportedly had $80 million in assets and a son with special needs who will need financial and other support for the rest of his life. Moreover, her attorney reports that he advised her for years to set up a trust. 

So why didn’t she do it? 

We’ll never know the answer, but Franklin is far from the only celebrity to have died without leaving a will or trust, which can lead to years of headaches and legal battles for their heirs.  Two years ago, Prince left a $200 million estate with no will and his heirs still have not received any money.  But this is not just a problem for celebrities.  According to a survey performed by Caring.com, nearly 60% of Americans don’t have a will or trust.

You may be thinking that this isn’t a concern for you because you don’t have a multi-million-dollar estate. But estate planning is not just for the uber wealthy.  If you own home or other real estate, bank accounts, investment accounts or any other possessions, you have assets that will need to be distributed upon your death.  If you set up a plan now, those assets can be distributed according to your wishes, outside of court, which will save your grieving family time, stress and money. If you fail to plan in advance, then your heirs will have to initiate court proceedings—which are not only public, slow and costly, but can lead to family squabbles.

And for those of you with minor children, creating a trust or will is crucial, because if you don’t decide who will care for your children, a judge will.  This can lead to a battle for your kids (and control of their assets) between various family members.  If that were to happen, you run the risk of a judge—who knows nothing about you or your family dynamics—potentially choosing someone whom you would never want to raise your kids. 

It’s understandable that so many people put off making these decisions.  They are uncomfortable and overwhelming. But the process does not have to be. Many people tell me that they have put off estate planning because it seems like such a hassle to gather all of that paperwork and they don’t know where to start or what to do. They are surprised when we actually sit down to chat to discover how simple the process usually is—although there is no “one size fits all” solution to estate planning.  So if you are one of those people who keeps meaning to do it, but life gets in the way, I get it. We all lead busy lives. That’s why I’m here to make the process as simple and pain free as possible.  I’m happy to chat at any time whenever you are ready to get started.