We’ve all heard the music of icon Whitney Houston. However, many have likely not heard of the estate mistakes that we’re made before she passed. Let the below story serve as a reminder of why comprehensive, regularly updated estate planning is essentially, especially for those with young beneficiaries.
Whitney Houston passed away at just 48 years old and left behind an estate estimated at $20 million. Unfortunately, her only daughter, Bobbie Kristina, died just three years later at 22 years old. While there are many reasons that contributed to their untimely deaths, some legal analysts pointed to Whitney Houston’s outdated estate plan as a factor in daughter’s final years.
Whitney Houston had her plan created will while she was pregnant with Bobbi and only made minor, if any, updates in the years that followed. Whitney’s estate was placed in a general trust for any future children rather than a tailored plan designed specifically for Bobbi.
Under the terms of her will, Bobbi Kristina received 10% of inheritance at age 21, with larger distributions scheduled for age 25 and full access by age 30. However, at the time, this structure may have given her significant financial access at a time when she was emotionally and developmentally vulnerable.
Should a more flexible planning tool had been used, such as a revocable living trust, Whitney Houston could have established specific conditions for distributions of funds. These conditions may have been: requiring financial maturity, completion of certain life milestones, or appointing a trustee to oversee the management and distribution of estate with greater care and discretion.
This heartbreaking story highlights the importance of not only creating an estate plan but also ensuring it’s updated as your life circumstances change. At our firm, we can help you craft customized plans designed to protect your loved ones.
Contact us today to discuss your estate planning goals and learn how we can help you build a plan that truly honors your wishes and protects your family’s future.
