Behold, the Power of Properly Drafted Estate Documents!

Reclusive heiress leaves money to who...?

As crazy as it may seem, Huguette Clark, heiress of around $400 million, gave nothing to her family, but left about $38 million to her private nurse, Hadassah Peri. Now that's what I call work benefits!

All kidding aside, this situation points out the great power properly drafted estate documents can have. $38 million is a lot of money, and a private nurse isn't exactly who most people would give their inheritance to. But in this case, Peri was clearly important to Clark, and her wish was to leave Peri the largest piece of her inheritance (aside from the money she left to charities).

However, Clark's generosity would never be realized without a proper estate plan. To put the importance of a proper estate plan into perspective, let's take a quick glimpse into the taxes alone for Clark's estate. Keep in mind, this number we are about to compute does not even include court costs, fees, or the time it will take to settle any disputes over such a large estate.

The federal taxes alone for Clark's estate would amount to $140 million! Wow.

Now we see how quickly taxes will deteriorate your estate if you are not prepared with a proper set of estate planning documents.

How can you avoid this nightmare?

Great question. You can consult with an estate planning attorney, of course!

Categories: Estate Planning, Taxes