Kenrick Newport | National Manager | Succession Planning | Capital Legacy | mail me |
The value of a well-drafted, updated will is in the spotlight again due to uncertainty surrounding Gene Hackman’s fortune. His estimated $80 million estate has raised questions about inheritance since his will does not name his three children.
The sad circumstances of Hackman and his wife’s deaths have intensified the uncertainty surrounding his financial legacy. Hackman estate controversy vividly illustrates how an outdated will can create chaos, stress, drama and even legal disputes for a family when a loved one passes away.
Why are questions being raised?
Hackman drafted his will in 1995 and last updated it in 2005. He named his wife, classical musician Betsy Arakawa, as the sole beneficiary.
Her will named him as beneficiary but included a clause requiring her estate to go into trust and be donated to charity if both passed away within 90 days. The trust would cover medical expenses before donating the remaining funds.
Truth can be stranger than fiction. Arakawa, aged 65, passed away from a rare virus. Seven days later, Hackman, aged 95, died of heart disease. Autopsy reports confirmed he also suffered from severe Alzheimer’s. This situation has raised questions about the validity of Hackman’s will. His three children from a previous marriage could now inherit his fortune despite not being named in the will.
What can we learn from Hackman estate controversy?
Hackman estate controversy highlights several crucial estate planning considerations. It is crucial to explain how this would play out under South African law.
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Always name alternate heirs
This situation reminds us to plan for the unlikely event that partners pass away in close succession. “Mirror wills” between life partners ensure that identical wills name each other as beneficiaries. Naming “contingent heirs” or “succeeding beneficiaries” is equally important. This prevents uncertainty and disputes if both partners pass away within a short period. Naming a close family member, trusted friend, or charity as an alternate heir is a wise decision.
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Review your will regularly
Life changes constantly. An outdated will can cause serious problems for loved ones left behind. Reviewing and updating your will annually ensures it reflects your current wishes and circumstances. Updating a will after major life events is also advisable. These events include marriage, childbirth, adoption, divorce or financial changes.
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If no beneficiaries are named, intestate succession applies
In South Africa, only minor children under 18 can claim maintenance from a parent’s estate. Adult children do not automatically inherit unless named in the will. If no alternate heirs are specified, the estate follows the Intestate Succession Act. The deceased’s closest relatives, such as children, could inherit.
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Special clauses can play a role
Arakawa’s will included a clause requiring her estate to go to a trust. The trust would donate funds to charity if both spouses passed away within 90 days. Since Hackman died only a week after her, this clause took effect. However, Hackman’s estate follows intestate succession because he did not specify alternate heirs.
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A living will has a part to play.
Hackman suffered from heart disease and severe Alzheimer’s. Arakawa served as his primary caregiver. In such cases, a living will plays a role but serves a different purpose from a last will and testament. A living will outlines medical treatment preferences if a person becomes incapacitated. It also communicates choices for end-of-life care. Drafting a living will after being diagnosed with a severe illness is a good idea. However, a living will does not impact inheritance or asset distribution. An estate plan, including a last will and testament, remains necessary. In cases of serious illness, estate planning should include a trust for financial security. Appointing a legal guardian or signing a power of attorney for financial decisions is also crucial.
The bottom line
Instead of mourning their father and his long-term partner, Hackman’s three children now face legal battles over his estate. Consulting attorneys has become necessary to understand the issues surrounding his will.
A clear, regularly updated will prevents unnecessary disputes. It also ensures that loved ones receive their rightful inheritance. Having a will, regardless of wealth, is a responsible step that provides peace of mind.
