Early and anticipatory estate planning can go a long way in saving a legacy. There are many examples where high-profile wrestlers show how careful arrangements (or the absence thereof) can have a huge impact on the outcomes for creditors, beneficiaries, and public image. Here are three high-profile wrestling fatalities and the estate planning lessons you can learn from them.
The Power of Trust from Macho Man Randy Savage
If you’re new to estate planning, you must focus on the estate of ‘Macho Man’ Randy Savage Randy “Macho Man” Savage was an in-your-face wrestling icon with his signature catchphrase “Oooh yeah”. When he died of a heart attack in a car accident on May 20, 2011, in Seminole, Florida, his $8 million estate was probate-proof for the most part due to the “Randy M. Poffo Trust” he created just a few months ago in August 2010.
The most important thing you can learn from Savage’s plan is to use a revocable living trust, as it makes it easier to transfer property and shield inheritors from probate fees. Also, it’s vital to quickly retitle property and investment accounts into the trust. Finally, using an imperial professional (Live Savage’s family and CPA Carl N. Howden) as the personal representative can prevent family theatrics and stay true to what the decedent desired. These suggestions are especially useful for high-net-worth entertainers whose estates tend to attract a lot of media and fan scrutiny.
Liability Protection and Settlement Strategy in Owen Hart’s Case
Owen Hart’s fatal accident during a stunt entrance on May 23, 1999, uncovered another aspect of estate planning: liability management for risks inherent in the workplace. Following a 78-foot fall related to a harness failure, Hart’s widow, Martha, sued WWE and equipment manufacturers for wrongful death. The case was resolved in November 2000 for $18 million, with Marthy getting $10 million, their two children $3 million each, and Hart’s parents getting $1 million each.
This finding is of tremendous benefit to performers and their families. First, ensuring your estate is well-insured (general liability and accident policies) can take care of your loved ones in case something goes awry. It’s also vital to have those hold-harmless agreements examined and negotiated through promoters and equipment suppliers so your heirs are not beset by protracted lawsuits.
Slayer Statutes in Chris Benoit’s Case
The horrific double-homicide-suicide by Chris Benoit in June 2007 uncovered a lesser-known estate planning trap: how “slayer statutes” and the timing of death affect inheritance rights. In Georgia, individuals who kill someone disqualify themselves from inheriting their victims’ property.
Officials found Benoit murdered his wife Nancy, then his son Daniel, before committing suicide. That order meant his children from a previous marriage (instead of Nancy’s parents) would inherit his multi-million-dollar estate. If it were the other way around, Nancy’s parents would’ve inherited the property instead.
This case serves as a reminder of the importance of identifying substitute and contingent beneficiaries in wills and trusts so that all possible contingencies, including those encompassed by state slayer statutes, are taken care of. It also speaks to the utility of powers of appointment and explicitly survivorship provisions, so should a firstborn heir be unable to inherit, assets will flow to intended secondary takers, avoiding confusion, filers’ battles, and unwanted windfalls.
Endnote
These examples from professional wrestling show that even larger-than-life characters have to plan for very real post-mortem scenarios. A revocable trust, solid liability protections, strategic insurance coverage and well-written beneficiary provisions all serve together as the building block of an iron-clad estate plan irrespective of whether your arena is the squared circle or the real world.
