• 17
  • February
    2012

In our prior post, we discussed the issue of posthumous estate activity. Specifically, how the estate of Whitney Houston could increase in value due to a boost in sales of her music as well as the release of a recently filmed movie and possible future revenue from unreleased singles.

Although many experts are predicting a boost in sales that could increase the value of her estate, questions have been raised as well. Most of these questions will be answered during probate, at least the questions that have to do with the handling of her estate. For example, it has yet to be reported whether there is even a will in place that will control.

There are also some questions about her liabilities. It is unclear at this point whether she had significant amounts of debt, because although her sales have seen a boost, they had been low in the years just prior to her death. In fact, she lost two homes to foreclosure within the last decade and has been rumored to have sought to borrow money from friends.

Her relationship with her ex, Bobby Brown, has been tumultuous. Although he was an ex-husband, he is inextricably linked to the estate through some of her money making endeavors. The pair did a Bravo reality TV show together called "Being Bobby Brown" which ran during the 2005 season.

As we mentioned in the opening of this two-part series, some assets have a kind of liquidity to them. Their value changes from day to day and is not as simple to measure like cash. Having a thorough estate plan becomes vitally important and can address issues such as ownership of a family business or whether stock should be sold or held in trust.

Source: The Washington Post, "Whitney Houston's death sparks outpouring that will benefit estate though questions remain," Feb. 14, 2012