• 23
  • June
    2011

In our previous post, we discussed the many ways in which intended beneficiaries may lose out on their expected inheritance when their loved ones pass away. In this post, we will discuss two specific examples of how an estate plan may have failed to produce its intended results.

The first example involves Princess Diana. The late princess appointed her mother and sister as the executors of her estate, trusting that her wishes would be carried out as she intended.

Princess Diana's wishes were to divide her belongings among her two sons and 17 godchildren. However, the executors were given the power to split up her assets and Princess Diana's godchildren only received a small token from her estate. It is impossible to say what the late Diana's wishes were not specifically spelled out in a written document stating what her godchildren should receive. Unfortunately, she left that it up to the executors to make those important decisions.

This is an example of how important it is to make sure that executors understand your exact wishes. In this case, the godchildren may certainly have been disappointed to only receive a small trinket as their inheritance from their godmother, Princess Diana, upon her death.

The second example involves Heath Ledger. At the time of his death he had a daughter and was in a relationship with his daughter's mother. However, when he died he had a will that was written before his daughter was born.

According to that document ,he left everything to his parents and sisters. As a result, his daughter and her mother did not receive any inheritance from his estate after his death. Although, his daughter was the beneficiary of a life insurance policy, as well as a separate trust created for her benefit, an up-to-date will could have clearly laid out his exact intentions with respect to his daughter and her mother. This would have prevented any questions from arising regarding whether his wishes were fulfilled upon his death.

This is an example of how important it is for Florida residents to keep their wills and trusts current. Whenever a life-changing event takes place, such as the birth of a child, it is a good idea to update your beneficiaries and the designations that you have previously made in a will.

Source: Palm Beach Daily News, "Wishes of the deceased over the division of assets must run legal gauntlet before reaching beneficiaries," Dian Vujovich, 18 June 2011