Prepare a Will Not a Letter

I confess to never having heard of Latin music and Mexican TV personality Jenni Rivera prior to her death in a plane crash in December.  I similarly confess to never having heard of her estranged 3rd husband, Esteban Loaiza, who plays for the Detroit Tigers.  So why am I blogging about them?

Rivera and Loaiza separated two months prior to her death.  After separating, River left a detailed letter to her sister asking her to take care of her children and business enterprise valued at $25 million in the event of her death.  It is unknown if she had other estate planning documents or a pre-nuptial agreement.

What lessons can be learned from her estate?

1.  When marrying for a 3rd time, one should definitely have a pre-nuptial agreement.  If Dennis Hopper can do this, others should, too.   

2.  When leaving on a trip, consult an estate planning attorney about preparing a will/revised a will.  A handwritten note is generally not effective.  

3.  When separated from a spouse, revise the estate plan immediately and implement a trust to preserve the assets for the children.

4.  $25 million net worth?  Apparently there is money to be made on Mexican TV and Latin radio for tumultuous personalities. 

Shades of Gray

No, not the book.  The Monkees song.

After Davy Jones of the Monkees died in February, the probate court agreed with his executrix to make his will unavailable as a public document.  For most estates, though, wills are public records and can be viewed by anyone. The speculation about the privacy request centers around Jones' marriage to a woman half his age which occurred 5 years after he made the will and possible financial problems he was suffering.  The widow has already filed a claim against the estate asking for the statutory share allowed for surviving spouses.

I doubt that his estate is proceeding as Jones would have wanted.  We can learn four lessons from Jones' errors.  

1.  The use of a funded trust avoids the probate process and provides privacy in administering estates abnegating the need to seal the will.

2.  When marrying for the second (or especially third time), a pre-nuptial agreement is essential so that spouses know what to expect and do not file claims against the estate.  It is hard to believe that Dennis Hopper got this, but Davy Jones did not.  

3.  Estate planning documents should always be updated after marriage.

4.  As appealing as it sounds, it is never a good idea to marry someone younger than your children.      

Mike, the smart Monkee, is probably aware of all of this.  

Smart Rider

The late Dennis Hopper made several wise estate planning moves late in his life. First, he had a pre-nuptial agreement when he married his fifth wife. Second, when he was dying and was in the midst of an acrimonious divorce with her, he created a trust for their then 7 year old daughter to which he left nearly $3 million. The then estranged spouse/now widow has no control over the trust assets.  

Two points. When a couple is divorced with minor children, I always advise my client to create a trust to hold assets for the children upon the death of the client. Otherwise, the former spouse will control the assets until the child turns 18 and may benefit from the assets. Second, when marrying for the 5th time, I am glad to see that Mr. Hopper had learned enough from his 4 previous failed marriages to execute a pre-nup. Old dogs can learn new tricks.