The TreeceCo Report
Are you ever too young to do estate planning?
Last November, movie star Paul Walker tragically passed away in a high-speed car accident. He was 40 years old. Walker starred in the popular Fast and Furious movies.
Have you ever wondered what a celebrity’s net worth is? Because Walker’s estate is going through probate, court documents reveal that he was worth $25 million, plus $8.5 million in real estate, and another $8.5 million in expected income.
The probate documents also reveal that Walker had a living revocable trust that he set up when was 28 years old… Before he began making money from the Fast and Furious movies. This is to be commended. And because the trust is private we can only see that his daughter is the sole beneficiary.
However Walker made one huge error! He never updated his living revocable trust when his income increased. Remember, a living document requires maintenance. Part of his estate is going through the public court controlled probate process because he did not update his trust documents.
His trust was not completely funded; this caused part of his estate to go through probate. If he had taken the time to update his legal documents, his privacy could have been preserved. If you can’t state with certainty that your trust is funded properly, it needs attention now!
Also because $25 million is over the federal estate tax threshold, Walker’s daughter, the beneficiary, will reap the tax consequences as she inherits the assets. Walker could have avoided this by having sufficient life insurance coverage.
While there are several lessons to be learned from Paul Walker’s estate planning, the most resounding fact is that it’s never too early to begin your estate planning preparation. Often we see people procrastinate in our business and the consequences can be stifling.
If you have children and a retirement account or investments worth over ten thousand dollars, you should have a living revocable trust. Otherwise your beneficiaries will endure the agony of probate when you pass away.
Call our office today to schedule a free no obligation estate planning consultation. 855.534.4653