Lessons from Whitney Houston’s Estate
Whitney Houston, the legendary singer and actress, captivated millions with her voice. However, her estate planning decisions offer crucial lessons for everyone, regardless of fame or fortune. Her story highlights the importance of proper estate planning and the risks of not updating plans when life changes.
What Happened with Whitney Houston’s Estate Plan?
Whitney Houston passed away in 2012. Almost 20 years before her death, she created a will to outline the distribution of her assets to her future children. This 1993 will set up a trust for her only daughter, Bobbi Kristina Brown. The inheritance would be distributed in stages—10% at age 21, one-sixth at age 25, and the rest at age 30.
Sadly, Bobbi Kristina died in 2015 at age 22. She did not live long enough to receive the full inheritance from her mother’s estate.
Who Inherited Whitney Houston’s Estate?
After Bobbi Kristina’s death, questions arose about who would inherit the estate. According to Whitney Houston’s will, if her daughter died unmarried, without children, and without a will, her estate would go to Houston’s mother, Cissy Houston, and her two brothers. Houston’s 2007 divorce from Bobby Brown removed him as a beneficiary.
Nick Gordon, Bobbi Kristina’s boyfriend, also received no inheritance. He was found legally responsible for her death in a civil lawsuit but faced no criminal charges. His death in 2020 ended any potential claims against the estate.
Could Whitney Houston Have Planned Better?
Whitney Houston took steps to protect her assets and provide for her daughter, but her estate plan had gaps. Her will, created in 1993, remained largely unchanged for almost two decades despite major life events like her divorce and the birth of her daughter. This outdated document required the estate to go through probate—a public and often lengthy process.
A living trust could have allowed her estate to pass more privately and efficiently to her intended heirs. The trust terms could also have managed the assets for Bobbi Kristina more effectively, protecting her from receiving large sums of money at a young age.
Key Lessons from Whitney Houston’s Estate Plan
- Update Your Estate Plan Regularly: Review and update your estate plan after significant life changes like marriage, divorce, childbirth, or changes in financial status. Houston’s failure to update her will after her divorce led to potential legal challenges.
- Choose the Right Type of Trust: A testamentary trust, like Houston’s, is created through a will and requires probate. A living trust avoids probate, maintains privacy, and offers more flexibility in distributing assets.
- Consider the Impact of Inheritance on Beneficiaries: Think about how an inheritance might affect your beneficiaries, especially if they are young or inexperienced with managing money. Houston’s trust gave substantial funds to Bobbi Kristina at age 21, which may have been too much too soon.
- Ensure Your Will Reflects Current Circumstances: Houston’s will named Bobby Brown as a beneficiary and referred to him as “my husband.” After their divorce, this language created confusion. Clear and current language is essential in estate documents.
The Takeaway: Plan Ahead
Whitney Houston’s story emphasizes the importance of proactive estate planning. Even a well-intentioned plan can become outdated, leading to unforeseen consequences. Regular reviews and updates to your estate plan ensure it aligns with your current wishes and circumstances, protecting both your assets and your loved ones.
Planning for the future involves more than just writing a will. Establishing a living trust can help distribute your assets efficiently, privately, and without the complications of probate. This proactive step provides peace of mind, knowing your legacy is secure and your loved ones will be cared for according to your wishes.
Don’t wait until it’s too late—start planning today and take control of your future with a living trust.
Call us at 760-754-9059 or click here to book an appointment and speak with one of our experienced estate planning professionals.
0 Comments