Celebrities would appear to have it all: large homes, flush bank accounts, and jet-setting lifestyles. But good estate planning does not appear to be one of the trappings of stardom. Maybe it's because people who are surrounded by adoring fans and wealth might feel as though they will never die, and so they may not see a pressing need to make the appropriate arrangements.

However, it could also be that celebrities are prone to the same estate conservation mistakes as private citizens. We don't often see the estate battles that arise when private citizens die, but celebrity estate planning mistakes usually make good tabloid fodder.

Gary Coleman, an Ex-Wife, and Health-Care Directives

The case of Diff'rent Strokes actor Gary Coleman is a lesson in updating your estate plan to reflect changes in your life. There is some question about his ex-wife's decision to take Coleman off life support shortly after he suffered a head injury at home that caused him to fall into a coma. Her actions are made all the more interesting by two related developments.

First, in 2006, Coleman created a health-care directive that gave his then-wife the power to make medical decisions if he became incapacitated. Coleman apparently included a provision stating that he wanted his life "to be prolonged as long as possible within the limits of generally accepted health care standards."1 Yet Coleman's ex-wife, who was with him in his home the night of his head injury and made the 911 call, made the decision to remove life support one day after he was admitted to the hospital with a brain hemorrhage.2 It is unclear whether doctors advised her that Coleman, who had suffered from poor health for much of his life, had sustained injuries that were not survivable.

Second, Coleman took out a restraining order against his ex-wife on February 19, 2010 - months before his May 28 death - alleging the theft and destruction of his property, although he never served her with the order.3

Divorce does not nullify a health-care directive, and it's unclear what Coleman's true wishes were, given that his ex-wife continued to live in his home and was present the night of his fatal injury. Nonetheless, if you have been through a divorce, it's wise to review your estate documents to ensure that they continue to reflect your wishes.
What's It to You?

It can be uncomfortable even to bring up the topic of estate conservation, let alone develop a strategy and review it on a regular basis. But as you can see, failing to make adequate preparations is likely to affect your heirs and could possibly taint your legacy.

1–2) eonline.com, June 14, 2010
3) New York Post, June 22, 2010

This article is provided by Muzette L. Charles. Please be advised that it is not intended as legal or tax advice. Muzette offers securities, annuities and insurance products through AXA Advisors, LLC (member FINRA, SIPC) and its' affiliate, AXA Network, LLC and its subsidiaries. Contact her for a no-obligation review on Retirement, Investment, Life & Long-Term Care Insurance Planning for Individual or Employer Group Plans & Seminar Speaker at 201-592-2501 or www.muzettecharles.com