Gene Hackman, legendary actor with a career spanning four decades, left an intriguing legacy not just through his films but also with his estate planning decisions. His successful career allowed him to amass an estimated $80 million estate, garnering headlines about who would inherit his wealth. As celebrity deaths often do, Hackman’s passing provides critical lessons for anyone looking to ensure their own wealth and personal affairs are properly handled after they pass away. Check out these top estate planning tips learned from Gene Hackman’s estate.
Pick the right fiduciaries and successors
In Hackman’s case, he had a Will and a Living Trust governing his estate. Last updated in 2005, his Will named his wife, Arakawa Hackman, as the sole beneficiary of his estate, Executor, and successor Trustee of his Living Trust. He also appointed his attorney as the successor Executor if his wife could not act. His attorney passed away in 2019.
Arakawa’s Will, signed the same day as Hackman’s, directs her estate to Gene’s Living Trust. It provided that if Gene not survive Arakawa by a period of 90 days from the date of her death, her estate was directed to be administered to “a charitable trust to achieve purposes beneficial to the community, consistent with the charitable preferences and interests expressed or indicated by my spouse and me during our lifetimes.”
TIP: When creating an estate plan, it’s essential to not only select the primary beneficiaries and fiduciaries but also identify multiple layers of successors. If one’s primary beneficiaries do not survive, the “intestacy laws” will govern, which in short directs one’s closest living relatives to inherit an estate. If there is no fiduciary who can serve, state law also governs who can be appointed as a successor. Just like Hackman, all estate plans should include a Will and/or Trust naming beneficiaries and fiduciaries, both primary and secondary. Trusts are not for everyone, but rather more common documents would include:
- a Durable Power of Attorney (POA) which designates an Agent to act on your behalf with respect to your property and finances, and
- a Health Care Directive / Living Will, naming an Agent to handle your medical affairs, generally in effect only upon your incapacity. This document also allows one to instruct their Agent as to end-of-life care and other medical decisions.
Address survivorship and disinheritance
As noted above, Arakawa’s Will included a survivorship clause. The intent of these clauses is to ensure the passing of assets to the proper beneficiaries, especially in the case of being predeceased, or having a beneficiary die shortly after the deceased individual. Some states have default laws requiring a beneficiary to survive a certain number of days for their inheritance to vest. Perhaps the biggest benefit of noting survivorship is specificity – making your wishes more clear and making your estate planning documents less likely to be subject to litigation.
Something Gene Hackman’s estate did not address was disinheritance. While Arakawa had no children, Gene had three. Gene’s children are not named in his Will, but they are also not specifically disinherited. While children do not generally have a right to an inheritance, it is highly recommended that estate planning documents specifically disinherit children (or other individuals) if that is the client’s wishes. Estate litigation could be decided on whether an individual had capacity to sign a Will, and an adverse party could argue that the individual “forgot” that he had children if they are not mentioned in his documents.
TIP: If for any reason, an individual desires to disinherit family members, this should be documented just as clearly and specifically as beneficiaries who are named. Addressing these things doesn’t need to be scandalous; rather they allow for your wishes to be followed as closely as possible.
Update or review your estate plan regularly
Hackman’s Will, dated June 7, 2005, specifies that his entire estate should go to his wife. When he died nearly 20 years later, these documents had not been updated. If Gene’s health allowed it, he should have considered updates to his documents, especially since his successor Executor had died. While validly executed estate planning documents do not become “stale” with passage of time, it is recommended to review them regularly and consider updates if circumstances have changed.
TIP: Beyond not creating an estate plan, one of the biggest mistakes people make is not revisiting these documents every few years. Life happens, people change, and the only way to address these significant updates is a regular review of your estate plan.
Legal support for your estate plan
Gene Hackman’s estate provides valuable lessons in the importance of comprehensive, updated, and clear estate planning. While no one can predict the future, these principles can help ensure your wealth is distributed according to your wishes and avoid unnecessary legal challenges for your loved ones. Proper estate planning is an essential tool for anyone who wants to protect their legacy and provide for those they care about after they are gone. Most people do not want their legacy to be a mess that their family has to clean up.
Contact our estate planning attorneys in Allentown, PA for support with establishing or updating your documents.
