By Steve Tepper, CFP®, MBA
I frequently take the occasion of a celebrity death to step on the third rail of wealth management: estate planning. Often, the rich and famous do a horrendous job of planning for their demise. Aretha Franklin famously avoided committing any legacy wishes to paper, and the untimely death of Prince in 2016 set off a frenzied search for an heir.
Estate planning shouldn’t be such a difficult topic. It’s just that obstacle called human nature. We really don’t like to talk about death, least of all our own. But the benefit of taking care of it sooner than later is evident. Not only will it resolve potential conflicts among your loved ones, it will give you peace of mind in your later years, knowing proper plans have been put in place.
Shortly after Kirk Douglas’s death last month at the age of 103, details of his estate plan emerged. Over the course of decades, he and his wife established a charitable trust with the intention of giving away most of their estate to their favorite charities upon passing. Recipients of their largesse include his alma mater, his religious congregation, a children’s hospital, and an eponymous theater in Los Angeles.
While the gifts likely won’t be immediate (Douglas’s wife, Anne, is still alive—at 100!—and serves as managing trustee to the foundation), the couple’s careful planning provides a high degree of assurance that their legacy wishes will be fulfilled.
Douglas apparently took another important step in the estate planning process: making his plans known to his children. Son Michael has often publicly praised his parents’ charitable largesse. I guess it’s good to have so much money you aren’t bothered a bit by your parents leaving you none of their $60 million estate! (Michael and wife Catherine Zeta-Jones’s own estate is valued in the vicinity of $300 million.)
Perhaps it makes sense that in 103 years, Douglas had time to get around to estate planning. We don’t all get that much time. If you don’t have up-to-date estate documents, get in touch with an estate planning attorney today!
Source: Kirk Douglas Leaves Fortune to Charity by Anna Sulkin, WealthManagement.com, Feb 25, 2020.