One story
which has been playing itself out in the tabloids lately is that of Whitney
Houston’s daughter, Bobbi Kristina, and her inheritance of Houston’s estimated
US$20 million (NZ$23m) estate.
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| Whitney Houston, Bobby Brown & Bobbi Kristina |
In her will
the singer who passed away two years ago stipulated that daughter Bobbi
Kristina would receive the money upon her 21st birthday. The will
was written 20 years ago, and Houston’s relatives say that she actually changed
her mind in recent years and intended for Bobbi to receive the money much
later. But unfortunately, what she intended doesn’t matter as she didn’t
express this by updating her will.
There’s
also the issue that Bobbi Kristina’s relatives don’t consider her emotionally
mature enough, or in the right frame of mind to handle such a large sum of
money. Cissy Houston, her grandmother, has begun legal proceedings in an
attempt to prevent Bobbi from becoming a millionaire at such a young age and
effectively overnight.
These
circumstances may seem like far-fetched Hollywood antics, but there are many
reasons why family members may wish to prevent another relative from receiving
their portion of the residuary estate. They may have a mental disability, an
addiction, a spend-thrift, or simply unable to manage their finances.
If you wish
to protect your assets as well as ensuring that your beneficiary is provided
for, a good solution may be to establish a trust in your will. You can set out
terms and conditions over how the trust is administered and managed. You can
appoint a third party who has the best interests of the beneficiary at heart to
manage the trust.
It is also
important to make sure that your will is up to date and reflects your current
wants and wishes. Important life events such as marriage, the birth of a child
and divorce may impact what is written in your will.
To write a
will or establish a family trust, you need expert legal advice. Call Perpetual
on 0800 737 738, and speak to one of our expert professionals.
