Estate planning isn’t just for the wealthy — but when the wealthy get it wrong, the consequences can be massive. High-profile cases involving celebrities like Prince, Michael Jackson, Marilyn Monroe, and Kobe Bryant show how even celebrities can make critical errors that cost their heirs time, money, and peace of mind. Below are four cautionary tales — and the estate planning lessons behind them.
Prince – No Will, No Control
When music legend Prince died in 2016, he left behind an estate worth around $200 million — including real estate, cash, master recordings, and unreleased music. However, he died without a will, leaving the distribution of his estate up to Minnesota’s intestacy laws.
Prince was survived by one full sister and five half-siblings, who were eventually named as his legal heirs. But the absence of a will created chaos: more than 45 people initially claimed to be heirs, sparking a legal battle that dragged on for over six years and cost tens of millions in legal fees. To make matters worse, two of Prince’s siblings died during the proceedings, complicating the distribution even further.
The lesson: Without a will or trust, your assets may not go to the people you would choose — and your loved ones could face long, expensive legal battles during an already difficult time.
Michael Jackson – A Trust Left Unfunded
Michael Jackson took a smart step in estate planning by creating a trust to pass his estate to his children and other beneficiaries while avoiding probate. But there was one major oversight: he never funded the trust during his lifetime.
As a result, when he passed away in 2009, his estate had to go through probate — the very thing the trust was designed to avoid. Even fifteen years later, his estate remains entangled in legal proceedings, largely due to a dispute with the IRS over the valuation of his assets. The IRS initially claimed the estate owed over $700 million in taxes and penalties. Additional delays arose as Jackson’s mother, Katherine, challenged the executors’ control and the sale of music rights.
The lesson: Creating a trust is only the first step — funding it is equally important. If you don’t transfer your assets into the trust, it won’t function as intended.
Marilyn Monroe – A Will Without Foresight
Marilyn Monroe passed away in 1962 with a will that left 75% of her estate, including intellectual property rights, to her acting coach and close friend, Lee Strasberg. What she likely didn’t anticipate was that after her death, Lee would remarry a woman named Anna Mizrahi — someone Monroe likely never knew. When Lee passed away in 1982, Monroe’s estate went to Anna.
For decades, Anna controlled Monroe’s image and likeness, licensing it for millions of dollars each year. While Monroe may have intended her legacy to remain in trusted hands, the lack of foresight in her planning meant that control of her brand ultimately passed to a stranger.
The lesson: Even with a will, it’s important to think about how your wishes might play out long-term — especially when dealing with intellectual property and future, unintended beneficiaries.
Kobe Bryant – An Outdated Trust
When NBA legend Kobe Bryant died in 2020, he left behind a wife and four daughters. His estate plan included a trust naming his wife and three older daughters as beneficiaries. However, his youngest daughter, Capri — just 7 months old at the time — had not been added to the trust.
Because Kobe hadn’t updated the trust after her birth, the trustees were forced to petition the court to include her. While the court ultimately approved the request, the process was time-consuming and costly — and completely avoidable.
The lesson: Estate planning isn’t a one-time event. Any major life change — the birth of a child, the death of a loved one, marriage, or divorce — should trigger a review and update of your estate documents to ensure your wishes are fully honored.
Takeaway
Estate planning mistakes aren’t limited to celebrities, but their stories provide powerful reminders of what can go wrong. Whether it’s failing to create a will, not funding a trust, overlooking future scenarios, or neglecting to update documents, these missteps can lead to unnecessary conflict, delays, and expenses.
At Vaughn Law, we help individuals and families create personalized, forward-thinking estate plans that avoid common pitfalls and provide peace of mind. Whether you’re starting from scratch or need to update an existing plan, our team is here to guide you every step of the way.
Don’t wait until it’s too late. Contact Vaughn Law today to ensure your wishes are clearly documented, your loved ones are protected, and your legacy is secure.