Too often, we read about celebrities dying without having their affairs in order or question. Prince comes to mind, whose estate took years to settle, with the only real winners being the attorneys of the many who claimed to be heirs. Or, more recently, Aretha Franklin’s will being found in between couch cushions. I was glad to see this article online at NWI.com, written by Christopher Yugo on 3/24/24. It is refreshing to know that actor Matthew Perry, who died last October, had his proverbial “ducks in a row.” Read on and learn what he did right.
“I recently read an article about Matthew Perry’s estate. For those of you who don’t know, Perry was an actor. Most people know him from his role as Chandler Bing on “Friends,” but he was in a ton of stuff.
Perry passed away this past October 28, at the young age of 54. I wasn’t much of a “Friends” fan, so I honestly didn’t pay much attention. I don’t really “fan boy” much anymore.
Anyway, recently details have started to emerge concerning Perry’s estate plan. Estate plans of the rich and famous are something I can get excited about. Over the years, I’ve written a number of articles about famous estate plans.
As I read about Perry’s estate plan, a couple of things jumped out at me. The first thing that jumped out was the named beneficiary under his last will and testament. The second thing that I immediately noticed was that the value of his estate seemed awfully low for someone who was as successful and wealthy as he was supposed to have been.
Now the reason that the beneficiary interests me is that it appears that his sole beneficiary was a living trust. Without having actually reviewed the document, it appears that Perry had a pour over will. If you have a trust estate plan, you are likely familiar with pour over wills. If you aren’t familiar, a pour over will is a last will and testament used in conjunction with a trust.
If the grantor of the trust neglects to fully fund the trust, the pour over will dumps the probate assets into the trust so that they can be administered according to its terms. A pour over will is sort of the trust’s safety net.
The fact that Perry had a pour over will that named a living trust as beneficiary likely answers the second question as to why the value of his “estate” was comparably low considering his wealth. The answer is most likely because he created a living trust and, for the most part, fully funded it. Remember, one of the benefits living trusts offer their grantors is probate avoidance. If you create a living trust and fully fund it, it’s unlikely your estate will ever need to be probated. I’m guessing that because of the complexity of Perry’s assets, it may have been impossible for him to avoid probate entirely, but that shouldn’t be the case for most of you.
While I’m still on the topic of living trusts, another benefit that the article touched on was that the names of the trust’s beneficiaries weren’t immediately apparent. That’s because living trusts should never see the light of day. Confidentiality is a big selling point of these things. Now, I will say that the article named several individuals that were beneficiaries of the trust. However, I suspect that was more speculation rather than actual knowledge. Unless, of course, someone really invaded this man’s privacy by releasing a copy of a trust that should really be confidential. I hope it’s only speculation and not an invasion of his privacy for the sake of his memory.
Perry’s estate plan appears to be a classic example of a well-planned estate. Obviously, I don’t have any idea what the trust provides, but it sure seems like he took the time to put his affairs in order, which is what all of us should do.”
This article highlights one of the many benefits I share with clients: confidentiality. Of course, the other key benefit is avoiding probate. Both are things to consider. I’ll be happy to explain the variety of legal tools available to you to protect your hard-earned assets and loved ones. Call me at 513-399-7526 or schedule a consultation through my website at www.davidlefton.com.
Source: 3/24/24 NWI.com, written by Christopher Yugo