Debbie Reynolds and Carrie Fisher’s Deaths Give Offspring Millions to Inherit Overnight Press Release

Press Release – FOR IMMEDIATE RELEASE

Debbie Reynolds and Carrie Fisher’s Deaths Give Offspring Millions to Inherit Overnight

Walnut Creek Estate Planning Attorney Comments Did Debbie Reynolds and Carrie Fisher Protect Billie Lourd, Carrie’s Daughter, with the Right Estate Plan?

Walnut Creek, California (January 19, 2017) – In late December, the world was rocked and saddened by the passing of not only one screen icon, Carrie Fisher, but also her mother, actress Debbie Reynolds. Losing two generations back to back will strain even the most robust estate plan.

Kirsten Howe, one of East Bay’s leading estate planning and administration attorneys, said, “Family members can pass quickly after the loss of a loved one. But, often, this is most common with long, close marriages of spouses who are in advanced years. When one spouse passes it is not surprising that many times, but not all the time, the surviving spouse or widow passes within a year or so. In the case of the Star Wars princess, Fisher, and her mother, Debbie Reynolds, however, this was mother-daughter, not spouses. This quick succession of death in a family can cause people who are planning their estates to take pause. After all, this was not a case of two long-married spouses.  And this was not the case of the surviving spouse passing away in the following year. This was mother-daughter and days.”

News reports estimate that Carrie’s estate is valued at somewhere between $5 million to $25 million. Her mother Debbie’s estate is larger, valued at between $60 million and $85 million. Neither of these ladies was married at the time of their passing. It appears both Carrie and Debbie had executed a trust. But did they set up the trust in the right way to protect their daughter and granddaughter?

Kirsten adds, “While reviewing estate plans, I often come across the stereotypical trust that gives beneficiaries access to the funds at a certain age. Probably the most common trust provisions I see drafted by other attorneys is 50% of the assets at age 25 and the balance of the trust at age 30 – or, 20% at 21, 50% at age 25 and the balance at age 30. The problem with these types of trusts is that if the beneficiary gets sued, goes through a divorce, has a bankruptcy or some other creditor issue, the trust could be exhausted and attached by a creditor in a legal proceeding. Another major issue is that the beneficiary may not be in a position to adequately manage the wealth at a young age, they could waste the assets, or they could hurt themselves with the money.”

It is unknown at this time whether or not Billie Lourd will have full access to the money set aside for her from both her grandmother‘s estate as well as her mother’s estate. She will likely inherit 100% of mom Carrie Fisher’s estate ($5-25 million) and Carrie Fisher’s half of Debbie Reynolds estate ($30-40 million dollars). That’s a lot of money to be in control of at the age of 24.

Kirsten continues, “Hopefully Carrie and Debbie had smart legal counsel and did not put Billie in charge of that money or with any demand rights against the Trustee for that money until some later time when she’s more mature. This is the nuts and bolts of designing wills and trusts. The aim is never leave it up to chance or to state intestacy laws. Most consumers would benefit from more detailed succession planning, and it’s especially important for high net worth individuals, those in second marriages, those with few intended heirs and people whose heirs include either very young children or someone with special needs.”

Some of the elements you may want to consider:

Simultaneous death clause

When two parties with intertwined estates die in the same event or accident, it’s not always possible to determine who died first. That can lead to some confusion over who gets what; for example, in a married couple that each named the other as the primary beneficiary.

So-called simultaneous death clauses specify which person should be deemed to have died first, which can be an important consideration for estate taxes and the ultimate direction of the bequests.

Survivorship deferrals

Specify in your will or trust that “all bequests are subject to the condition that the legatee survives me” by a particular period of time, often at least 30 days, but in some cases a longer survivorship period is desirable. 

Armageddon planning

Wills and trusts should have default beneficiaries, in case the intended beneficiaries predecease the testator.

Note in your will whether there’s a point — even three or four heirs deep — at which you’d rather have your assets pass to an entity like your alma mater, church or a favorite nonprofit rather than a very distant relative.

Watch those beneficiaries

Insurance policies and qualified retirement plans, among other assets, pass automatically to the named beneficiary on that account, regardless of what your will dictates. Name a primary and a contingent beneficiary on such accounts, and keep those up to date.

Be cautious about naming your estate or your trust as a beneficiary. Particularly with retirement assets, it is very important to consult with an attorney in order to avoid unintended consequences.

Heir protection

When your beneficiary is a minor or an individual with special needs, think about whether it might make sense to have that money put in trust for their benefit rather than be awarded directly to them. That ensures the money isn’t squandered and prevents negative impacts to any government benefits eligibility.

Asset retitling

Consider how jointly owned assets are titled. Couples often opt for “joint tenancy with right of survivorship” or “community property with right of survivorship” to avoid probate, but that can be problematic in simultaneous death cases.

Property distribution

Decide how your estate will be distributed if a beneficiary with children dies before you do. Dividing an estate “per stirpes” means each of that deceased beneficiaries’ heirs will split his or her share. Other wording might limit inheritance only to named beneficiaries in a particular class (meaning you’d effectively shut out a deceased child’s children) or split the share by a person in each generation (so if your two children predecease you, your five grandchildren could divide the estate five ways).

Kirsten Howe

Kirsten Howe has given presentations to many professional associations in the Bay Area on the topics of estate planning, trust administration, SSI benefits, ABLE accounts, Medi-Cal benefits, Special Needs trusts, estate planning with retirement trusts, Proposition 13, How to Prepare Fiduciary Accounting, Trust Protectors and Planning for Incapacity.  Kirsten is also trained by the Trusts and Estates Section of the Contra Costa Bar Association on Elder Financial Abuse and has given many presentations to seniors and their families on this very important topic.  Kirsten sits on a panel with four other professional women to help seniors understand the implications of aging.  Kirsten is available for interviews on any of the above-mentioned topics.

About Kirsten Howe Attorney at Law

Law Office of Kirsten Howe is among the most highly ranked estate planning law firms in Walnut Creek. The firm’s areas of expertise include Estate Planning, Trust Administration, Medi-Cal Planning, Probate, Retirement Asset Planning and Special Needs Planning.  Kirsten Howe Attorney at Law’s mission is to provide easy, legal solutions for every client.

Kirsten Howe, the firm’s managing attorney, was admitted to the California bar in 1987 and has practiced in Walnut Creek since 1997. She earned her J.D. cum laude at the University of California, Hastings College of the Law, where she was a member of the Thurston Society and Managing Editor of The Hastings Law Journal. She earned her Bachelor of Science degree in 1980 from the University of Michigan.

Kirsten is a member of the Trusts and Estates section of the California State Bar Association; the Estate Planning and Probate Section, the Elder Law Section and the Women’s Section of the Contra Costa County Bar Association. She is on the Board of Directors of the Estate Planning Council of Diablo Valley and a member of the Robert G. McGrath American chapter of Inns of Court.

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