One way to start a dialogue with your loved ones about the importance of careful estate planning is to use a celebrity story to make the case for you, writes Attwood Marshall Lawyers Estate Litigation Partner Lucy McPherson.
Within families, it’s common to wonder about what will happen when Dad dies, or where Mum keeps her Will, or who will inherit the family heirlooms. But many find that giving a voice to those questions may be difficult. In a blended family involving second or third marriages, it can become even more awkward. How do you come out and ask, “Hey Dad, does your Will list me or your wife as the executor of the estate?”
It’s difficult to broach the topic of estate planning with loved ones without appearing greedy or invasive.
A helpful tip is to use a celebrity and their deceased estate to illustrate the consequences of having an overly simplistic or ambiguous Will that doesn’t make clear your intentions. High-profile cases of contested estates can offer a raft of lessons for those who have outdated Wills or no Will in place at all.
One such celebrity story is that of Jim Morrison, lead singer of The Doors.
The Doors, one of the most influential and controversial rock bands of the 1960s, were formed in Los Angeles in 1965 by UCLA film students Ray Manzarek, keyboards, and Jim Morrison, vocals; with drummer John Densmore and guitarist Robby Krieger. The group signed to Elektra Records in 1966 and released its first album, The Doors, featuring the hit “Light My Fire,” in 1967.
From the start, The Doors’ focus was the charismatic Morrison, who proved increasingly unstable over the group’s brief career. In 1969, Morrison was arrested for indecent exposure during a concert in Miami, an incident that nearly derailed the band. Upon the completion of 1971’s L.A. Woman, Morrison decamped for Paris. He died there shortly afterwards, apparently of a drug overdose. The three surviving Doors tried to carry on without him but ultimately disbanded.
Jim Morrison’s contested estate
Morrison died at 27 and despite his young age, hard-partying lifestyle, and free spirit, he had in fact taken steps to protect his estate with a Will.
The problem was, his Will was simplistic, poorly drafted and only two pages long.
Morrison’s Will declared that he was unmarried and had no children, and he bequeathed his entire estate outright to his Common Law wife (de facto partner) Pamela Courson. If she was already deceased when he died, he wanted his estate to go in equal shares to his brother and sister. He was estranged from his parents, so they were not mentioned.
At the time of Morrison’s death, his financial assets were relatively modest, but he owned a 25 per cent interest in The Doors.
After Morrison died, his estate was tied up in litigation in probate court. Dozens of women came forward with paternity claims. Unfortunately, this was long before DNA tests could prove paternity, so it was up to the court to decide if the claims were credible or not. To make matters worse, Morrison’s former Doors band mates also sued, claiming a bigger share of The Doors’ royalties.
Courson received a modest stipend to live on during the probate proceedings. However it wasn’t until three years after Morrison died, in 1974, that the court finally rejected the other claims and recognised Courson as the heir to his estate.
Only a few weeks later, however, Courson herself died of a heroin overdose.
Courson died intestate (without a Will), so her estate – including what she had just inherited from Morrison – passed outright to her parents.
Morrison’s parents made a claim against their son’s estate, arguing that Morrison was incompetent to make a Will and that the Common Law marriage to Courson was illegitimate. Their hope was that his estate would instead pass to them on intestacy.
However, the court found that Courson was in a Common Law marriage with Morrison, which meant that even if the Will had been declared invalid she still would have inherited the entire estate.
Morrison’s parents were estranged from their son at the time of his death and were not named in his Will, however they believed that they had as much right to their son’s legacy and estate as Courson’s parents.
The dispute between both sets of parents lasted several more years. By 1980, the litigation between the two families was settled out of court with an agreement that each would split the royalties of Morrison’s share of The Doors music catalogue 50-50.
This was now nine years on from Morrison’s death, and in that time The Doors had become much more popular with the value of the royalty stream reported to have hit more than $80 million.
Lessons to be learnt from the contest of Jim Morrison estate
Chances are many readers have spent plenty of time pondering how much money they will have available for retirement. But what have they done to plan their estate, for their children and grandchildren? The sad truth is that some 50 per cent of adult Australians have neglected to write a Will.
For those that do, too many assume that they only need a “simple Will,” where Person A dies, leaving their estate in full to Person B. While these Wills are suitable for some people, they don’t cater to the needs of individuals who have a complex financial profile or family relationships.
Overly simplistic Wills often fail to consider what happens when the primary beneficiary subsequently dies. This was seen in the Jim Morrison dispute.
How should I best protect my testamentary wishes?
Testamentary Trust Wills
Instead of making an outright bequest to Courson, Morrison could have left all his assets on Trust and provided that upon her subsequent death, any remaining assets would pass to his siblings.
If Morrison had included a Testamentary Trust in his Will, he could have extended his control over his assets. Doing so would have ensured that his desired beneficiaries ultimately inherited his estate.
There are several benefits for going to the trouble to protect your heirs with a Testamentary Trust. The main advantages include:
- The assets are protected against a beneficiary’s creditors or divorce, thus avoiding a loss of an inheritance due to the bankruptcy or adverse financial circumstances of a beneficiary,
- Safeguards can be put in place for beneficiaries who may not be able to look after their money due to age, substance abuse or even disability,
- The assets held by a Testamentary Trust can generate their own income, maximising the benefits which flow through the Testamentary Trust to the beneficiaries, and
- A Testamentary Trust can endure for up to 80 years, keeping your hard-earned assets within your bloodline.
Updating your Will
Once your Will is in place you then need to review it regularly and amend it whenever there is a big change in your family circumstances such as a birth, death or a marriage.
It might seem like a hassle now, but it is nothing compared to the hassle your heirs will experience if you die without a Will, or with a Will that does not match your current circumstances.
Don’t opt for a simple Will just for costs’ sake. Any dispute over the Will’s validity – or ambiguity – will end up costing the estate, not only in terms of dollars but also the emotional toll on your family members as they attempt to fix up what could have been sorted and clarified long before your death.
Attwood Marshall Lawyers – helping you plan for the future and preserve your wishes
The lessons from these types of cases are clear. Having an estate plan and creating a Will that is tailored to your unique circumstances with the help of an experienced estate lawyer will help avoid future potential problems.
Don’t leave your family’s future to chance. Ensure your wishes are known and your assets are protected with a personalized estate plan. At Attwood Marshall Lawyers, we take a holistic approach to estate planning to ensure our clients get a personalised service that considers their unique circumstances and specific wishes.
For a Will review or to discuss our estate planning services, please contact our Wills and Estates Department Manager Donna Tolley directly on 07 5506 8241, mobile 0423 772 555 or email dtolley@attwoodmarshall.com.au.
You can also book online instantly by clicking here and booking through our website.
