Famous Celebrity Estate Battles

Celebrities are very different from the rest of us in many ways, but we can still learn lessons from their mistakes:

1. Don’t make a naughty video tape unless you’re okay with it being on the Internet.

2. Driving drunk will land you in jail.

3. Be sure your last will and testament is in order because, if you die suddenly, your loved ones may squabble over the last penny.

Never mind that you aren’t wealthy—planning is essential for estates of all sizes, including those consisting of a 3-year old Volkswagen, a plasma TV, and a few grand in savings. You may not care who inherits your X-box, but think about those left behind to fight over it. Most of us are worth something financially, which can quickly become nothing if we don’t plan right. Especially if you have a family, you owe it to them to be a grown-up and do some estate planning and update it after every major life event.

To inspire you, here are a few stories about what can happen when you neglect that particular responsibility:

James Brown

James Brown, the Godfather of Soul, died on Christmas of 2006 and now, over 5 years later, his estate still isn’t settled. Though originally estimated at $100 million, the fighting over his estate and all the debt incurred reduced his charitable trust to a measly $14,000 as of a 2009 settlement agreement. Half of the estate was supposed to go to the trust, a quarter to his widow, and the remainder split equally among his children—a settlement that his family found fair. When the attorney who administrates the estate hired a professional to manage deals involving Brown’s musical legacy, most of the money was earned back and the charitable trust was finally funded again—until two former trustees from the estate decided to sue for control. Meanwhile, Brown’s widow and children haven’t seen a dime, all because he didn’t update his documents after marrying and having his last child.

Gary Coleman

“Diff’rent Strokes” actor Gary Coleman died May 29, 2010 when his ex-wife used her medical power of attorney to unplug him from life support. After his death, Coleman’s parents claimed he didn’t leave a will, and therefore his estate should go to them. Coleman’s ex-manager claimed there was a will, and it left him in charge of the estate. A later will was then found naming Coleman’s former companion and friend Anna Gray executor. And finally, the ex-wife, Shannon Price, claimed that he had handwritten a more current will and that she should be in charge—and inherit everything—because they were still living together and common-law spouses. Naturally all of them are fighting over the estate, which also has some debts. How it will turn out is anyone’s guess, but one thing is for sure: hand-written wills or amendments are iffy at best, and your lawyer should always have the most current and updated version of your estate plans on file.

Farrah Fawcett

Farrah Fawcett, the actress best known for her role in the 1970s TV show “Charlie’s Angels,” died of cancer in 2009, leaving a $50 million estate behind. Fawcett left a living trust, but the trust administrator, Richard Francis, decided to sue producer Craig Nevius for embezzlement and mishandling of the documentary Fawcett created during her battle with cancer. Nevius (pictured above) was already suing Francis, along with Fawcett’s longtime companion Ryan O’Neal and her friend Alana Stewart for wrongly excluding him from producing the documentary. Nevius also claims that he was Fawcett’s closest friend and the others are only out for their own financial self-interests. Meanwhile, the beneficiaries of the trust, including Fawcett’s father, have received nothing. It’s still unclear who is telling the truth, and it could take years to sort out. Don’t let this happen to your family.

Michael Jackson

When the King of Pop, Michael Jackson, died in 2009, people came out of the woodwork to claim a piece of his estate, including his father, who was pointedly left out of the will. Those people also include a representative of the city of Los Angeles, who wants reimbursement for the funeral; a woman who claims to be the mother of his children; and a man who wants $5 million for a wrongly cancelled memorabilia auction. The biggest hold-up in the estate settlement is the ongoing claims of Jackson’s father, Joe Jackson. That, and the fact that, although Michael did set up a trust as was appropriate, he failed to transfer his assets into it.