The tragic death of talented actor Philip Seymour Hoffman apparently from a drug overdose last month continues to make the news, most recently with the revelation that his ‘estate plan’ was woefully outdated and inadequate for his personal situation.  Even though Hoffman had minor children and scads of money, his estate plan did not include a Revocable Living Trust.  A Revocable Living Trust is a common and extremely useful estate planning tool.  A Revocable Living Trust would have allowed Hoffman to keep his private affairs out of the public eye by avoiding probate.  Along with probate avoidance, a Revocable Living Trust is an excellent way to manage assets for young beneficiaries and to provide creditor protection for inherited assets. 

On the plus side, Hoffman did leave a Will, which puts him out in front of many Americans. This was fortuitous for Hoffman’s long-time companion and the mother of his children, Marianne O’Donnell, especially since the two never married.  Had Hoffman failed to make a Will naming her as a beneficiary, Ms. O’Donnell would not have been entitled to anything from Hoffman’s estate.  On the other hand, Hoffman’s Will was more than 10 years old and had not been updated following the births of his second and third child.

Clearly, the first take away from this tragedy is ‘don’t do drugs.’ The second is, ‘prepare an estate plan that is appropriate to your situation and review and update it on a regular basis.’

Visit our Articles page to read more about the benefits of creating a Revocable Living Trust and tales of other celebrity estate plans gone wrong.

Published March 2014