Celebrity Estate Planning
Lessons from the Rich and Famous for Protecting Your Legacy
Celebrity Estate Plans Series Part 2 of 4: Vanilla Ice Has Thoughts
This month we are delving into celebrity estate planning and its impact on various celebrities. Last week, we examined Michael Jackson's estate planning. We saw the gaps that led to 15 years of family conflict and court battles. If you missed it, check it out!
In this second article of our four-part series, we are going to look at Vanilla Ice. Vanilla Ice recently shared his estate planning experiences, advice, and lessons learned in a YouTube video. He has a lot to say! I'll highlight some user comments and key takeaways we can learn from.
Let's start with a topic nobody likes to talk about: taxes
Estate Taxes
Vanilla Ice (Really) Hates Estate Taxes
Vanilla Ice shares the story of his buddy Mark. Mark’s parents owned a sprawling property in Palm Beach, Florida. When they passed, Mark and his siblings sold the estate. They expected to be set for life. But estate taxes ended up taking over 80% of their profit. Ouch!
Vanilla Ice calls estate tax a "generational wealth killer," and he's right. Estate taxes can take a huge chunk of your wealth. However, a proper estate plan can prevent this. The key is education. Understanding the challenges helps you plan smarter, ensuring more of your hard-earned assets reach your heirs.
In the comments section of the video, one user wrote that he agrees. He says, “as a Certified Public Accountant (CPA), I love Rob's recommendation to gain an understanding of taxes. We spend more on taxes than everything else in life.”
I agree too! I believe that education is the most important part of estate planning. That’s why my planning process begins with a planning session. At that session, I educate you on how to make wise decisions about your planning. I include suggestions on keeping your family out of court and out of conflict. We talk about minimizing taxes. And, we ultimately create a plan that works for you and the people you love, when they need it.
First Lesson: Plan Now
If you think your family might face estate taxes after your death, don't wait to plan. There's too much at stake. Call us, Ket's discuss the planning you need for yourself and your loved ones.
Let’s talk life insurance next.
Value of Life Insurance
Vanilla Ice Thinks Life Insurance is Cool
Life insurance does more than cover funeral costs. It's a powerful estate planning tool. Vanilla Ice advises "maxing out your life insurance" to leave as much money as possible to your kids. The great thing about life insurance is that death benefits aren't taxed as income. This means your heirs get more value compared to investing that money in other assets.
Consider Vanilla Ice's advice. A life insurance policy payout can cover taxes, probate fees, and debts. This ensures your heirs get most of your assets. Life insurance can also address short-term needs such as paying off a mortgage. And, it can even address long-term needs such as maintaining your family's lifestyle.
In our planning process, we’ll review your life insurance. We’ll discuss if you have the right amount and type. We'll explain what "maxing out your life insurance" means and if it's right for you. We'll also consider if you need more, less, or a different kind of insurance based on your family, assets, and wishes for your loved ones.
Second Lesson: Make Sure Your Life Insurance Is Correct
If you want to be cool, make the right type and kind of life insurance part of your planning.
Trusts Are For Everyone
Ice Says Trusts Are Not Just for the Rich and Famous (and He’s Right!)
Trusts aren't just for the super-wealthy. Trusts are a smart tool for anyone looking to protect their assets. One commenter agreed from experience, saying, "It isn't just millionaires who need planning. I've seen families torn apart fighting over $100,000 or less. Siblings stop speaking to each other over $50,000."
Ice mentions irrevocable trusts specifically. These types of trusts let you transfer assets to a beneficiary while removing the assets from your taxable estate, ensuring your assets aren’t subject to estate taxes. Any assets placed in an irrevocable trust are also protected from legal judgments and creditors IF you do it the right way and in the right jurisdiction. Don’t go at this one alone. But if it’s something you are interested in, contact us and let’s talk. In the video, Ice jokes about putting his classic car collection into a trust and setting rules, such as his kids can lease but not sell the cars. This kind of protection ensures your heirs benefit from, but don’t squander, the assets. In other words, even after death, you get to determine how your assets will be used. And if you want to protect them for future generations, you can. This is one way to create generational wealth.
Now, in North Carolina, if you set up an Irrevocable Trust, you cannot be the trustee OR the beneficiary. So, you are essentially giving up control and use of all of your assets. These trusts may be suitable for Medicaid planning but are not ideal for every day situations.
But, not to fret. Your loved ones can receive the benefit of an irrevocable trust. How? By you setting up life time asset protection trusts for your children under your own Revocable Trust. So, at your death, your children will be protected from third party creditors. However, a non-family member must be a Trustee of their trusts. So, this is a great tool to protect your children and create generational wealth.
Third Lesson: Create a Trust
If you want to protect and preserve your assets for generations, take Vanilla Ice’s advice and utilize trusts in your planning.
Choose Your Estate Planning Attorney Wisely
Ice Has Some Not-So-Nice Things to Say About Lawyers
Trusts can be a valuable tool in estate planning. But, Ice criticizes some lawyers who draft trusts, calling them "vultures." One commenter added a lawyer joke, saying, "What do you call 1,000 lawyers at the bottom of the sea? A good start."
Believe me, I’ve heard all the lawyer jokes out there, and I’ll say this. They wouldn’t be “jokes” if people didn’t find them funny. And people find them funny because there’s some truth in them. Sadly, lots of people have had a bad experience with a lawyer in the past.
Ice accurately describes a bad experience with a lawyer. You see, they use complex language and legal concepts to confuse you. They sell you unnecessary documents, and charge too much. He warns against blindly trusting such lawyers.
And, he’s right.
That's why I have the specific processes in place that I do. My process is designed to ensure you receive clear guidance and understand all the decisions you make. We never create documents that we know might pose issues later on for you. And, we let you choose your own fees.
Our education-first process ensures you understand how the law applies to your specific situation. This empowers you to make informed decisions and act as your own best advisor. We offer transparent, upfront flat fees that you agree to beforehand—no gimmicks, no surprises, all chosen by you. We avoid using complicated legal jargon to overcharge you for services you don’t need - or even want.
Fourth Lesson
Hire a lawyer you can trust to be there for you and your family, for life and beyond.
Put Your Plan Into Action Today
Put Vanilla Ice’s Advice Into Action Today
Vanilla Ice's video highlights lessons that everyone can learn from. By understanding your options—such as how taxes and life insurance affect your family and assets—and by considering well-counseled trusts, you can protect your assets and ensure they benefit your loved ones as intended. As his classic hit "Ice Ice Baby" says, "Anything less than the best is a felony." Take these lessons to heart and begin crafting a robust estate plan today. Future generations will appreciate your foresight.
As a Personal Family Lawyer Firm, we help you create a plan rooted in education and clarity. That way, your loved ones stay out of court and conflict and your assets are protected. And once we’ve created your plan, you can rest easy knowing you’ve done the right things for the people you love most—word to your mother.
Click here to schedule a complimentary 15-minute consultation to learn more:
This article is a service of Kristen N. Mackintosh, The Happy Lawyer, at Mackintosh Law, PLLC, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
