despite being a musical legend, James Brown's family experienced financial hardship as a result of his lack of estate preparation.The "Mother Popcorn" singer's estate was said to be valued more than $100 million, as AfroTech previously reported. But his will was nothing if not ambiguous when he passed away in 2006.The Godfather of Soul just specified that the proceeds of his estate be used to fund grants for underprivileged children, according to Smithsonian Magazine. Given that James Brown was raised in a modest log cabin in the small rural community of Elko, South Carolina, it stands to reason that he would desire nothing but the best for those who may be similar to him.
However, it goes without saying that because of his tangled legacy, his will was challenged practically immediately following his passing. And finally, after a pricey 15-year legal struggle, his heirs sold the assets of his estate to Primary Wave Music for $90 million.But there are certain problems with this agreement.
Five of James Brown's children have reportedly been fighting for ownership of the estate for the past 15 years, according to an earlier story from AfroTech. "Lawsuits between the present and former executors of the estate must be considered and settled before any money can be handed out. Aside from that, it's unknown how the agreement with Primary Wave will be affected if one or more of Brown's heirs come to control a sizable portion of the estate and how the ongoing legal proceedings might diminish the estate's worth to Primary Wave.
But James Brown isn't the only famous person who neglected to make any estate plans. Celebrities, ranging from Whitney Houston and Luther Vandross to Prince and Michael Jackson, have frequently neglected to make adequate provisions for their heirs when they pass away, which only results in strained relationships, protracted legal disputes, and the loss of significant assets.
You don't have to be a famous person, though, to plan your estate. Making last arrangements will go a long way toward sparing your family a lot of legal headaches after your passing, regardless of how large — or small — your estate is.Estate planning: What Is It?
You need to make last-minute preparations, regardless of how modest or large your estate is. And that is the goal of estate planning, according to Forbes.
But a real "estate plan" is more than just a will. Instead, it entails a number of legal agreements that establish arrangements for your passing as well as any financial obligations that might arise as a result of your inability to make such decisions.
For instance, estate planning will make sure that your family (or anybody else you may designate) will fulfill your preferences and "do right" by your finances if you have a stroke or another incapacitating condition that prevents you from making your own decisions.
Why is it crucial?
In addition to ensuring that your family abides by your desires and preventing problems like those in James Brown's family, according to Investopedia, estate planning will help your heirs avoid paying a big tax charge.
States have different estate taxes. For instance, if your estate is worth $10 million or more, New York's estate tax may be as high as 16 percent (Estate value includes both cash assets and real property, amongst other things). Not to mention the federal estate tax, which is 5% of the value of the estate as a whole.
Your heirs will avoid a staggering tax burden by creating a proper estate plan.
And that's something that Aretha Franklin's heirs wish they had, as AfroTech has reported.
What Should Your Estate's Structure Be?
According to NerdWallet, a basic estate plan contains a fairly straightforward checklist. Simply put, all you need to do is inventory your assets, consider what your family (or other heirs) would require, and make appropriate plans.
The greatest kind of estate planning, however, is undoubtedly that which is carried out with the assistance of a qualified and licensed attorney who focuses on estates, wills, and other planning directions.
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