As promised, here is Part Two of the ABA article (June 2025) on celebrity estate planning missteps. Authored by the following: Kristen Curatolo, Jay J. Scharf, Shifra Herzberg, Shaina Kamen, Erica Howard-Potter, Mikhail E. Lezhnev, and Jessica Galligan Goldsmith this Part covers the estate plans of Matthew T. Mello II, Lisa Marie Presley, and Ivana Trump.
“Estate of Matthew T. Mellon II: The Ripple Effect
Background
Matthew T. Mellon II was an American businessman whose family founded institutions such as BNY Mellon and Carnegie Mellon University. Mellon’s initial investment of $2 million in the cryptocurrency “Ripple” quickly skyrocketed in value, and by the time of his death in 2018, Mellon’s investment in Ripple was worth approximately $360 million. Mellon had three children from two marriages, both of which ended in divorce.
Estate Plan
Mellon died with a relatively simple will that he executed years before he acquired his cryptocurrency. Mellon left his fortune to his children in trusts that terminated at the age of 35.
Result
Mellon failed to transfer some or all of his interest in his cryptocurrency to an irrevocable generation-skipping trust during his lifetime. As such, this asset was included in his estate at the time of his death, causing approximately $60 million in estate taxes. Had Mellon transferred the cryptocurrency to an irrevocable trust soon after it was purchased, Mellon could have allocated some or all of his federal estate and generation-skipping transfer (GST) tax exemptions to the trust, and all of the future appreciation in the assets transferred to the trust would have been estate tax free for multiple generations. Ripple’s price also quickly dropped following Mellon’s death. Because Mellon did not contribute the cryptocurrency to an irrevocable trust or even a revocable trust during his lifetime, Mellon’s executors were unable to access and liquidate the assets until formally appointed by the court. This delay caused the estate to incur losses in the rapidly fluctuating crypto market. Lastly, Mellon’s will failed to create lifetime trusts for his children to which his remaining federal GST tax exemption could have been allocated, avoiding the inclusion of such property in the children’s own estates.
Lesson
Clients should update their estate planning documents as soon as they obtain highly appreciating assets. Clients also should consider gifting or selling such assets to an irrevocable trust during life to use their estate and GST tax exemptions and to provide ready access to those assets without waiting for a formal fiduciary appointment by a court. Lifetime trusts for children and grandchildren are good estate planning tools to preserve appreciating assets for future generations.
Estate of Lisa Marie Presley: A House Divided
Background
Lisa Marie Presley was the only child of singer and actor Elvis Presley and actress Priscilla Presley. Lisa Marie was married and divorced four times and had four children, Riley and Benjamin Keough and Finley and Harper Lockwood.
Estate Plan
In 1993, Lisa Marie created a revocable trust to manage her assets. Lisa Marie restated the revocable trust in 2010 to appoint Priscilla and Lisa Marie’s business manager, Barry Siegel, as co-trustees. In 2016, Lisa Marie signed an amendment to the revocable trust that removed Priscilla and Siegel as co-trustees and replaced them with two of her children, Riley and Benjamin. Benjamin subsequently committed suicide in 2020 at the age of 27, leaving Riley as the sole trustee of Lisa Marie’s revocable trust, wielding full control over Elvis’s home, Graceland, including its 13-acre original grounds, Elvis’s personal effects, and Elvis’s legacy. At the time of Lisa Marie’s death, the Elvis brand brought in more than $100 million per year.
Result
Following Lisa Marie’s death, Priscilla contested the 2016 amendment to the revocable trust. Priscilla questioned the authenticity of the 2016 amendment for several reasons, including that it was not witnessed or notarized and that Lisa Marie’s signature appeared inconsistent with her customary signature. The legitimacy of the 2016 amendment was critical in determining who would serve as Lisa Marie’s trustee or trustees. Four months after Lisa Marie’s death, the dispute between Priscilla and Riley was settled out of court. Riley reportedly agreed to give Priscilla more than $1 million in order to become the sole trustee of Lisa Marie’s revocable trust and also created a sub-trust for Priscilla’s son and Lisa Marie’s half-brother, Navarone Garibaldi. Riley, Finley, and Harper split the remainder of the revocable trust.
Lesson
Carefully observing the formalities when executing an amendment to a trust agreement (such as dating the amendment, signing before witnesses and a notary, and delivering notice as required) can help avoid post-mortem challenges to a client’s estate plan. Revocable trusts in particular should be amended and restated in their entirety rather than being amended in bits and pieces that can be lost, overlooked or challenged.
Ivana Trump: Why Less Isn’t Always More with Estate Planning
Background
Ivana Trump, a Czech American skier, socialite, and businesswoman, gained fame as the first wife of President Donald Trump. Throughout their marriage, Ivana held significant roles within the Trump Organization, and after their divorce, she authored several best-selling books and ran multiple businesses until her death in 2022.
Estate Plan
Ivana’s estate, worth tens of millions of dollars, was distributed through her will, with her son, Eric Trump, serving as the sole executor. Although attractively simple, reliance solely on a will to pass an estate as large and well known as Ivana’s could result in significant publicity for the decedent and beneficiaries. This risk could be mitigated through the use of more advanced estate planning techniques, including revocable trusts.
Result
The publication of Ivana’s will revealed intimate details about her life and final wishes, including the fate of her dog, fur coats, jewelry collection, and well-known domestic and foreign real estate. Although such public disclosure might intrigue some fans and probate enthusiasts, it is an outcome most high-net-worth and high-profile individuals are keen to avoid. Ivana could have avoided the inherent publicity of the probate process by using a “pour-over” will and a funded revocable trust. Under this approach, her assets would have transferred to a revocable trust, ensuring that the details of her estate and its disposition remained private. The additional benefits of funding a revocable trust during the grantor’s life include easing the management of assets in the event of the grantor’s incapacity, bypassing the delay and expense of probate, avoiding ancillary probate for out-of-state real property, and avoiding court oversight of continuing trusts created under the revocable trust agreement.
Lesson
In estate planning, simplicity can be deceptive. A simple will may be easy and inexpensive to create up front, but it can create costly complexity and unwanted publicity down the line. Ivana’s case underscores the need for thoughtful planning and strategic foresight catered to each individual client.
Conclusion
The celebrities highlighted above each had an estate misfire. Some had no estate plan at all, and some had plans that suffered from poor drafting or poor planning. Given the ever-changing tax laws, the vast differences in state intestacy laws and estate taxes, and the complexities often inherent in today’s families, all persons should protect their assets and their loved ones by hiring competent estate planning counsel and devising thoughtful and comprehensive estate plans.”
I hope you found all of this interesting. And maybe it has motivated you to take steps to create or update your own estate plan. If so, I’d be honored to assist you. Please call me at 513-399-7526 or visit www.davidlefton.com to learn more.
Source: American Bar Association June 2025, Authors: Kristen Curatolo, Jay J. Scharf, Shifra Herzberg, Shaina Kamen, Erica Howard-Potter, Mikhail E. Lezhnev, and Jessica Galligan Goldsmith