We lost many celebrities in the last two years. Over the next couple blog we plan to identify the celebrity, the issue with their estate plan and the possible solutions or outcomes.
Kobe Bryant
Kobe Bryant died tragically in January 2020, shortly before the world shut down due to the Corona Virus pandemic. He was a world-famous basketball player, a savvy businessman, brand-builder, investor and Oscar winner. He was a father to 4 girls, all under 18. He left a carefully crafted estate plan in place prior to his untimely death at the age of 41.
Kobe’s estate plan protected his assets, reduced estate-tax liability, and passed his wealth to his family members. Despite all that planning, Kobe made a tragic oversight. He failed to update his estate plan after the birth of his youngest daughter, Capri Bryant. She was just six months old at the time of his death. While it is quite unfortunate, it is not uncommon for parents to delay or even forget adding a new baby to their trust. We get so caught up with enjoying our newest addition, prioritizing a trust update takes a backseat.
In the case of Kobe Bryant they sought to fix this oversight. The co-trustees of the Kobe Bryant Trust petitioned the court to modify Kobe’s trust to add Capri as a beneficiary, so that she will be eligible to inherit her share of the family estate. This mistake not only requires the trust to expend unnecessary legal fees, it also eliminates the privacy aspect of Kobe’s estate plan because the trust and its terms have become public record. Once court involvement occurs these issues become public record and public fodder. A tabloid website or magazine may take the opportunity to report on the issue.
Lesson to Learn: UPDATE YOUR ESTATE PLAN. After a divorce or the birth or adoption of a new child, you should always revisit your estate plan. In the event none of those things happen, we recommend you revisit your estate plan every five to seven years.