The Force Pays Off

The Walt Disney Company is reportedly set to receive $50 million due to the death of Carrier Fisher. Disney owns Star Wars and had taken out an insurance policy on Fisher in the event she was unable to complete the new three film trilogy. Filming had wrapped on Episode VIII but Episode IX, due in 2019, will need a script re-write.

Several minor points:

1. The insurance on Fisher is a form of "key man" insurance which many companies purchase on the lives of their valuable employees to protect the company in the event of the death of the employee.

2. $50 million seems excessive given the limited role that Fisher played in The Force Awakens.

3. The insurance carrier is likely wishing that it had rather insured the life of Harrison Ford, whose Han Solo died during Episode VII, and who will not appear in any more episodes.

                                          Photo Copyright:  REX/Walt Disney/Shutterstock/Robot
                                                   License:  Fair Use/Educational Purposes

Even Rappers' Estates Need to Pay Their Debts

I have previously blogged about rapper Nate Dogg and the financial issues surrounding his estate.  He died in 2011 without a will but with 6 children of unascertainable ages and different mothers and unpaid child support and medical bills of $290K.  His primary asset was a house with $200K of equity.  The administrator of his estate has a contract to sell the house for $340,000 but his children are opposing the sale because it will not leave them enough money.

Several points:

1.  A decedent's debts must be paid before estate beneficiaries receive any proceeds of the estate. It is unfortunate for his children that there will likely be no assets left for them after the payment of debts, but an administrator cannot magically make a house worth more than the market is willing to pay nor make the debts less.

2.  If Mr. Dogg had wanted to provide for his children and not worry about his debts, he could have purchased a life insurance policy to benefit them.

3.  His house was worth $340K?  I doubt it was featured on MTV's "Cribs."