It is always tragic when someone dies.  In the past couple of months, well known individuals and celebrities have unexpectedly died - Farrah Fawcett, Michael Jackson, Billy Mays and Steve McNair.  It has now become known that Steve McNair did not have a Will or any sort of estate plan.  Besides his current wife and two children, he had two children from a previous relationship.  It is now up to the laws of Tennessee to determine who receives his assets and how and when they are distributed.   Given the probable size of his estate, the IRS may actually be the biggest beneficiary as a result of his death, receiving upwards of 45% of his assets.
 
Most of us do not think we are going to die tomorrow.  This is especially true of athletes.  The lesson that should be learned by these unfortunate deaths is that the future is unknown.  And, while there is a media circus surrounding the death of Michael Jackson, in the end, it will be determined that he created a conservative, private estate plan that will allow for the future wellbeing of his children, mother and others and or charitable causes close to him.
 
The bottom line is no matter how young or healthy you are, no matter your wealth or family situation, estate planning allows you to control who receives  your assets, allows you to determine who makes decisions for you and your young children, allows you to determine how and when your assets are distributed and finally, may prevent the IRS from receiving the lion’s share of your estate.

Now that the untimely death of Michael Jackson is turning into a custody battle brewing between the Jackson Family, the biological Mother of his children and possibly the Nanny, I believe it is important opportunity to mention how essential it is that parents name guardians for their children in the event of incapacity or death.

Many people are under the impression that estate planning is “just for the wealthy” or for the elderly.  This could not be farther from the truth.  Whether you have many assets or not, it is essential for families with children to clearly define who should care for your children if you are not able to so.  A court will normally honor the wishes of the parent to determine who should take care of the children. 

No one can predict how or when we will die, however, we can dictate how our children and our assets will be handled after your death with basic estate planning.  This includes appointing someone to make medical and financial decisions for you, if you are unable, as well as naming guardians for your children, for both the long and short term.  Again, if these decisions are not put in writing, you have left it up to a judge to make decisions for you, sometimes after a messy and costly court fight. 

This past winter, one of my clients, a single Mother with two teenage children suddenly died.  Because  thorough and complete estate planning had been done, a close family friend, who agreed to move into my client’s house, was named as the guardian and was able to immediately begin caring for the teenage children.

So use this sad and tragic passing of one of entertainment’s icons as a call to families to take control of your future and that of your children.  Do not wait to have basic estate planning, i.e., wills, advanced medical directives, correct beneficiary designations, power of attorneys and guardianship, documented so if something tragic happens, you have directed who should make decisions, who should care for your children and how your assets shall be used after your death.  And, at the same time, use the opportunity to document the values you want passed along and how you would like for them to be raised.  Don’t let the courts do this for you!

A California court has made the late Michael Jackson’s mother, Katherine Jackson, the temporary administrator of his estate pending a hearing next Monday.  Mrs. Jackson’s had petitioned for the status out of concerns that a host of third parties could try to steal from the estate.

In addition to various bank accounts, Mrs. Jackson and her attorney worry about Michael’s stake in the Sony-ATV Music Publishing Catalog - which includes Beatles’ works — thought to be the most important asset in the estate.

Right now, it’s uncertain whether Michael Jackson had a will as none of the family members were aware of one.

You wouldn’t think so, but many times celebrities dies without a comprehensive estate plan in place.  It does not surprise me that there are already allegations regarding inappropriate conduct by various parties.  I believe that this will be the tip of the iceberg. 

The lesson for us normal folks is to plan early and to make sure all assets are owned properly and that all retirement accounts have the proper beneficiary designations.  Everything should be coordinated and reflect the exact wishes of the individual.  Moreover, it is important that the people close to you know about your planning, though maybe not the exact details, and know who to call when the unfortunate happens.